HomeTechUK Tech Incorporations Hit Five-year High Last Quarter

UK Tech Incorporations Hit Five-year High Last Quarter


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The number of new technology companies incorporated in the UK reached a five-year high last quarter, despite global economic headwinds, new analysis has found.

After looking at data from Companies House, audit, tax, and consulting firm RSM UK uncovered that UK tech incorporations increased by 11% to 13,802 in Q1 2024, up from 12,441 in Q1 2023.

Further, last quarter’s numbers represent an increase of 4.4% on Q4 2023, which saw 13,218 tech companies registered across the UK.

The region which had the largest statistical increase last quarter was the North East, with a 37% change. In Q1 2024, there were 236 tech incorporations, compared to Q1 2023’s number of 172.

However, in terms of sheer numbers, London had the most registrations: 7,253 tech companies were incorporated in Q1 2024, while 6,278 were registered in Q1 2023, representing a 16% increase.

Scotland was somewhat in the middle of the pack, with a 13% increase: 445 tech firms were incorporated in Q1 2024, and 393 in Q1 2023. However, the statistic of 13% is still two points ahead of the figure for the UK as a whole.

Wales and the South West saw the largest statistical decreases in tech company registrations, at -28% and -9% respectively. Wales had 232 tech incorporations in Q1 2024, compared to Q1 2023’s figure of 323. The South West had 582 in Q1 2024, and 643 in Q1 2023.

Speaking on the numbers for last quarter, Ben Bilsland, partner and head of technology industry at RSM UK, said: “2024 got off to a great start with the largest number of UK tech incorporations in five years. UK tech continues to go from strength to strength, despite ongoing macro-economic uncertainty in the UK and overseas.

“A key factor is the strength in depth of the UK’s tech sector. Our advice to tech entrepreneurs is to engage with tech businesses around them to collaborate, innovate and grow together.”

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“High rates of borrowing and uncertainty around inflation can have a detrimental impact on the risk appetite and patience of investors,” he continued. “As interest rates stabilise, inflation slows, and business confidence improves, this bodes well for further growth in the sector.

“The development of innovative technologies requires a significant amount of investment and time, so an increase in both of these factors to enable the creation of new products will be hugely welcomed by UK tech companies looking to grow.”

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