The number of people engaging in company formation in the UK rose towards the end of last year, it has been noted. Figures published by Companies House show that the number of firms in existence in the week ending on November 28th was 2,651,405. This was up on the 2,651,405 recorded in the seven-day period finishing on November 7th.
Companies House, which serves to incorporate and dissolve limited businesses, examine and store information delivered under the Companies Act and to make this information available to the public, also revealed that in England and Wales specifically, the number of private firms increased from 463,862 to 2,467,042 over the course of the month.This was a continuation of the positive trend in company formation seen in the months leading up to this period.
Meanwhile, a slight rise in the number of public companies, in other words those trading on the stock exchange, was also recorded. This went up from 9,522 to 9,543.In Scotland, the number of private limited companies went up marginally, from 147,623 to 147,654, while Northern Ireland also saw an increase from 36,600 to 36,709.
Company registration may be on the rise for a number of reasons. One of the most important factors could be the ongoing economic problems being seen around the country. Many individuals have been made redundant or are not able to get a job. Rather than relying on the unstable and highly competitive employment market, more people may therefore decide to engage in company registration.
This tendency towards greater self-reliance could remain a prominent feature in Britain for the foreseeable future as a result of the government’s spending cuts. In a bid to tackle the fiscal deficit, the coalition has axed support for a range of schemes and has forced the public sector to implement a range of efficiencies.