Report March 2022

We analyse Companies House “basic company data” up to the February 28th, 2022. We note more company registration relative to January 2022. The firm creation among active firms remains stronger than the same period in 2019 and 2020, but similar than the same period in 2021.

Highlights

1. Business creation increased 2.68% between January 2022 and February 2022.
2. Business creation was 51% higher in February 2022 than in February 2020 and 2% lower in February 2022 than in February 2021.
3. The largest number of company registrations occurs in ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ and ‘Public administration and defence; compulsory social security’.

Aggregate Analysis

Daily

The chart below shows the daily company incorporations in the UK since January 2020. The lockdown periods correspond to our key dates timeline.

• Business creation increased by 2.68% between January and February 2022.
• 30,315 additional companies were registered in February 2022 relative to February 2019.
• 22,316 more company registrations are noticed in February 2022 relative to February 2020.
• 1,516 fewer company registrations are noticed in February 2022 relative to February 2021.
• The median daily registrations were 82% higher in February 2022 than February 2019.

The chart below shows the rolling average of firm creation since January 2019. Shaded areas correspond to lockdown periods as shown our key dates timeline.

Relative

Company registrations persistently exceed their 2019 levels. A similar pattern is observed between the ratios of 2021/2019 and 2022/2019 during the first 8 weeks of the year.

February

Daily average company registrations in February 2022 are 51% higher than February 2020, but 85% higher than February 2019 among the active firms. However, it is 2.25% lower than February 2021.

Regional Analysis

Postcode Area

The map shows the average percentage change in new registrations in February 2022 compared to February 2019.

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Country

The following graph aggregates business creation by country. London, followed by Wales, dominates business registrations.

London

Within London, most of the business creation in February 2022 comes from Central and North of London.

Sectoral Analysis

SIC Sections

The graph illustrates company registrations in February 2022 relative to 2019 by industrial sector. It compares the percentage change in 2022 relative to 2019 for each week. We use 4-digit SIC levels (ONS “Classes”) and group them into broader sectors (ONS “Sections”). We use the ONS classification. We show a selection of sectors that present notable changes.

• February 2022 retains higher firm creation in most sectors than February 2019.
• ‘Public administration and defence; compulsory social security’, ‘Wholesale, and Retail Trade’ and ‘Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use’ sectors show the greatest increase in firm creation in February 2022, as last month.
• Compared to February 2019, in February 2022 there is more than a 300% increase in business creation for ‘Cargo handling’, ‘Retail sale of games and toys in specialised stores’, ‘Retail sale via mail order houses or via Internet’ and ‘Other building and industrial cleaning activities’ sectors.
• There are lower registrations relative to Febuary 2019 in ‘Other information service activities n.e.c.’, ‘Construction of railways and underground railways’ and ‘Support activities for petroleum and natural gas extraction’ sectors.

• Snapshot