Over 5.6 million UK businesses in operation, marking new record

The UK’s active business population has reached a record 5.66 million companies, according to the latest data from NatWest and Beauhurst’s New Startup Index.

A total of 402,000 new businesses were registered with Companies House in the first half of 2026, a 5.7% decrease compared with H1 2025. However, entrepreneurial activity remained widespread across every region of the UK, with the continued growth in the active company base providing evidence of the resilience of the UK business landscape.

Technology businesses were a standout performer during the first half of the year. Application software became the UK’s 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 AI and emerging technologies.

Regional entrepreneurship also remained vibrant. Scotland recorded the strongest growth in startup activity, with incorporations rising 3.73% compared with H2 2025. The East Midlands followed with growth of 3.3%, while London remained the UK’s leading hub for new business creation, accounting for more than 136,000 new companies. 

While incorporation volumes have adjusted compared with previous years, the data suggests regulatory reforms may be contributing to a higher-quality company register by reducing low-intent and fraudulent registrations.

“The latest data shows UK entrepreneurship remains in good health,” says Darren Pirie, head of accelerator and strategic partnerships at NatWest. 

“While startup formation has moderated, more businesses are operating across the UK than ever before and 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 of the country underlines the important role new businesses play in supporting innovation, investment and local economic growth.”