Corporate Activity Remains Healthy – For Now

This year’s Q3 statistical release from Companies House paints a relatively encouraging picture of the UK’s corporate activity – but will it continue?

Figures show a healthy 4.4% increase in the number of registered companies when compared to the same period in 2016.  This net figure takes into account those companies removed from the register in the same period due to dissolutions and liquidations, and stands 0.6% higher than at the end of Q2.

The figures, which take no account of how actively any individual company trades, show that by the end of Q3 the total number of registered companies in the UK stood at 3,961,786.  Allowing for those in the process of dissolution or liquidation trims the figure to 3,703,135.

However, upon closer inspection, the quarterly figures when compared to the same period last year could be cause for concern, with Q3 2017 incorporations lagging those during Q3 2016, whereas dissolutions and liquidations both increased in the same timeframe.

Typically, Q4 is the quietest quarter of the year for company incorporations and figures for Q4 this year will be eagerly anticipated to see how Brexit jitters and a return to tighter monetary policy are impacting on corporate registration and dissolution activity.

Commenting on the figures, Edward Garston, specialist Corporate and Commercial Senior Associate Solicitor said “although these figures offer an interesting overview of the volume of company start-ups and closures, they fail to offer any additional insight as to how active the established UK Corporate sector has been, with many company boards now planning for an uncertain period ahead, both economically and politically”.

MORE INFORMATION 

If you have questions relating to company formations, sales or liquidations, do not hesitate to seek specialist advice from Pinney Talfourd’s Commercial Department – email us by using the form to the right.

This article was written by Edward Garston, a company commercial solicitor at Pinney Talfourd LLP Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as of November 2017.