July 9, 2024 Company register grows by 4.6%
The annual statistical review of company data can provide some surprising insights into the lifecycle of UK companies. The latest company register release provided by Companies House on 27 June 2024 is no exception. Who would have thought that at the end of March 2024 there were fifty-four companies still in existence which were incorporated between 1862 and 1869. Or that of the 244,717 companies which were incorporated in the first three months of 2024, more than one and a half thousand would have been in the course of liquidation or dissolution by the end of March.
Overall, in the year to March 2024 the register of companies grew by 4.6%. But that bare statistic conceals a year-on-year increase of 11.2% in company registrations alongside a 13.2% increase in company dissolutions. And, despite those few long-lived companies mentioned above, the average age of companies on the register is just 8.7 years; with just under half of all companies having been in existence for less than five years.
Private limited companies account for over 90% of register entries with the remainder of places being taken up by a variety of incorporation types. In addition to various categories of limited companies and partnerships, the list includes charitable organisations and registered societies.
Overseas companies and entities also appear, together accounting for just under 1% of the total. The United States tops the overseas company table, followed by the Channel Islands and Ireland. In the year to March 2024 the register saw an overall increase of 4.2% in overseas companies with 983 new registrations. More than 29% of these originated in the Channel Islands.
There are several reasons why overseas companies might decide to incorporate a subsidiary company in the UK. Not only does maintaining a UK company make it easier to operate in the UK, it can also bring tax and regulatory benefits. Maintaining a UK company can also help to deal more directly with potential UK clients.
Elemental can provide assistance and advice to international companies looking to set up a UK subsidiary. From initial formation to ongoing tax, payroll and accountancy services, Elemental can provide companies with the legal and regulatory framework which enables them to operate within the UK. We can also provide advice and assistance to overseas entities which are looking to buy an existing UK company and are the number one UK regulated agent by market share in respect of the Register of Overseas Entities.
