The number of technology companies incorporated in the UK jumped by 62 percent in 2021.
Companies House said that more than 38,200 tech firms registering as limited companies with the bulk of them being in London. There were more than 18,549 new registrations in London which adds up to a 94 percent on the 9,572 London tech businesses incorporated in 2020. The South East was the next highest with 4,115 (up 35 percent), and the North West, with 2,371 (up 43 percent).
RSM UK collated data on tech business creation for the past three years, with 2021 having the highest number of incorporations within that time period. Its analysis shows an unprecedented level of tech incorporations.
RSM UK partner and head of media and technology David Blacher said that to be seeing incorporations increasing by between 40 per cent and 60 per cent in regions throughout the UK is very encouraging, and it is clear to see that the tech sector has thrived in conditions where other industries have either slowed or declined.
“Covid-19 has encouraged more businesses to embrace technology, both to operate successfully during periods of disruption and to adapt to shifting consumer demands. The roll-out of 5G and experimentation with new ideas such as the metaverse and crypto has led to more companies perceiving themselves as a tech business, which wouldn’t have been the case in the past.”
“To see incorporations increasing by between 40 percent and 60 percent in regions throughout the UK is very encouraging, and it is clear the tech sector has thrived in conditions where other industries have either slowed or declined”
