UK Incorporations Research
Growth in UK company incorporations
UK company incorporations have more than tripled since 2000, and the underlying growth trend has resumed after two years of decline. Annual incorporations reached 830,000 in 2025, and the rolling 12-month total to May 2026 stood at 812,000, up 2.3% on the equivalent period a year earlier.
Are UK company incorporations still growing in 2026?
Yes, on a rolling 12-month basis. The 12 months to May 2026 produced 812,000 new incorporations, up from 794,000 in the 12 months to May 2025, a gain of 2.3%. This follows two consecutive annual declines from the 2023 peak, suggesting the longer-term growth trend has reasserted itself even though individual months remain volatile.
Viewed over a longer horizon, the trend is unambiguous. Annual incorporations rose from 245,000 in 2000 to 830,000 in 2025, an increase of 238.8%. Even measured over just the last decade, incorporations are up 24.1%, from 669,000 in 2016 to 830,000 in 2025. Structural shifts in how people work in the UK, including tax-driven incorporation and the growth of gig economy contracting, sit behind much of this expansion, as sole traders and contractors increasingly choose limited company structures.
The picture is not one of uninterrupted growth. Incorporations peaked at 901,000 in 2023 before falling 6.3% to 844,000 in 2024 and a further 1.7% to 830,000 in 2025. Month-to-month figures also swing sharply: May 2026 recorded 63,000 incorporations, down 10.0% on May 2025's 70,000, and the January to May 2026 total of 337,000 is 5.1% behind the same period in 2025. The rolling annual figures smooth out this volatility and point to renewed underlying growth.
Key Insights
- Annual incorporations have grown from 245,000 in 2000 to 830,000 in 2025, a rise of 238.8%.
- The rolling 12 months to May 2026 recorded 812,000 incorporations, up 2.3% on the 12 months to May 2025, the first sustained uptick after two years of annual decline.
- Incorporations peaked at 901,000 in 2023, then fell 6.3% in 2024 and a further 1.7% in 2025.
- May 2026 alone saw 63,000 new incorporations, 10.0% lower than May 2025's 70,000, showing continued month-to-month volatility.
- Incorporations for January to May 2026 total 337,000, 5.1% below the equivalent five months of 2025 (355,000).
- Over the last decade, annual incorporations are up 24.1%, from 669,000 in 2016 to 830,000 in 2025.
UK incorporations by year, 2016 to 2026 YTD
Annual UK company incorporations, 2016 to 2025, plus year-to-date total for January to May 2026.| Year | Incorporations | Change on prior year |
|---|---|---|
| 2016 | 669,000 | - |
| 2017 | 640,000 | -4.3% |
| 2018 | 670,000 | +4.7% |
| 2019 | 690,000 | +3.0% |
| 2020 | 781,000 | +13.2% |
| 2021 | 771,000 | -1.3% |
| 2022 | 806,000 | +4.5% |
| 2023 | 901,000 | +11.8% |
| 2024 | 844,000 | -6.3% |
| 2025 | 830,000 | -1.7% |
| 2026 (Jan-May, YTD) | 337,000 | -5.1% vs Jan-May 2025 |
What this means
The headline picture is one of gradual, long-run growth in UK company formation, consistent with changes to the tax regime and the continued expansion of gig economy and contractor-based work, both of which favour incorporation over sole trader or unincorporated status. The 2023 peak of 901,000 looks to have been a high point rather than a new baseline, with 2024 and 2025 both coming in lower. However, the return to positive rolling 12-month growth (+2.3% to May 2026) suggests the dip has bottomed out rather than signalling a structural reversal. Lenders and brokers tracking new business formation should treat single-month figures, such as the 10.0% year-on-year fall in May 2026, with caution, and instead watch the rolling annual trend for a clearer read on demand for start-up and early-stage business finance.
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