Increase in company formations signals economic vitality in the UK

In the first six months of 2014, 302,028 companies were formed in the UK. This compares to 260,380 company formations in the second half of 2013 – a 16% increase.

The figures capture everything from significant subsidiaries formed by large international conglomerates to small business people just starting out and setting-up their first limited company.

Whilst there are many measures to gauge the health of an economy, the amount of companies being formed is a useful bellwether of the confidence all business people have in the “state of play”.

What is most interesting is that the overall increase is not dependent on London or the South East alone. Rather, every region in the UK has witnessed double digit increases in company formations.

The largest rise in percentage terms has come in the North of England where 55,578 were formed in Jan-June 2014, compared to 46,817 in Jul-Dec 2013 – a 19% increase.

The smallest rise was in Scotland, perhaps due to uncertainty around the Independence Referendum which took place in September 2014. Nevertheless, there was still a 12% increase in formations.

Jordans is proud to have helped form many of these new companies and should you be considering forming a company yourself we’d be delighted to talk to you about your needs.

In the meantime take a look below at our breakdown of new company formations by region…

London (inner and outer):
Jul-Dec 2013: 94,469
Jan-June 2014: 108,819
Increase: 15%

Midlands and the East:
Jul-Dec 2013: 43,877
Jan-June 2014: 51,426
Increase: 17%

North of England:
Jul-Dec 2013: 46,817
Jan-June 2014: 55,578
Increase: 19%

Northern Ireland:
Jul-Dec 2013: 3,020
Jan-June 2014: 3,428
Increase: 14%

Jul-Dec 2013: 14,953
Jan-June 2014: 16,760
Increase: 12%

South of England:
Jul-Dec 2013: 50,193
Jan-June 2014: 57,793
Increase: 15%

Jul-Dec 2013: 7,051
Jan-June 2014: 8,224
Increase: 17%


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