UK active business population hits record high despite registration dip

The United Kingdom has recorded a new high for its active business population, with 5.66 million companies currently in operation. This milestone is reported in the latest edition of the New Startup Index, a joint publication by NatWest and Beauhurst. The data indicates that the total number of operating firms has grown, even as the rate of new company registrations has slowed compared with the previous year.

In the first half of 2026, Companies House registered 402,000 new businesses. This figure represents a 5.7% decrease when compared with the same period in 2025. Despite this reduction in incorporation volumes, entrepreneurial activity remained widespread across all regions of the country. The continued expansion of the active company base is cited as evidence of the resilience of the UK business landscape. Regulatory reforms are suggested to be contributing to a higher-quality company register by reducing low-intent and fraudulent registrations.

Technology businesses emerged as a standout sector during the first half of the year. Application software became the most active startup category, with 28,100 new businesses incorporated. The wider digital and technology sector also recorded strong growth, reflecting continued innovation and investment in areas such as artificial intelligence and emerging technologies. Regional entrepreneurship remained vibrant, with Scotland recording the strongest growth in startup activity. Incorporations in Scotland rose by 3.73% compared with the second half of 2025. The East Midlands followed with growth of 3.3%, while London remained the leading hub for new business creation, accounting for more than 136,000 new companies.

Darren Pirie, head of accelerator and strategic partnerships at NatWest, stated that UK entrepreneurship remains in good health. He noted that while startup formation has moderated, more businesses are operating across the UK than ever before. Founders continue to identify opportunities for growth, particularly in high-potential sectors such as technology and software. The strength of entrepreneurial activity across every region underlines the important role new businesses play in supporting innovation, investment and local economic growth.