90 new businesses created every hour across Britain as business registrations rebound in 2026

• iwoca’s analysis of Companies House data reveals that nearly 390,000 businesses were registered in Britain between January and June 2026
• Business registrations rose 9% compared to the same period in 2025, despite Companies House increasing incorporation fees in February 2026 
• iwoca's Business Hotspots 2026 list shows that London saw the highest business creation rate per capita across the regions for the sixth year in a row, with 1,462 new businesses per 100,000, followed by the North West with 536
• Scotland sees fastest growth of new businesses with a 16% increase, whilst Wales was the only region in Britain to see business creation rates decline, falling 23% year on year

90 new businesses were created every hour across Britain in the first half of 2026 – the equivalent of a new company roughly every 40 seconds – according to the annual Business Hotspots report from iwoca, one of Europe’s largest SME lenders. 

Registrations recover after last year’s slowdown, but still don’t reach 2024 levels 

iwoca's analysis of Companies House data finds that new business registrations rose 9% year-on-year, with 388,922 companies incorporated between January and June 2026. This follows a 21% fall over the same period in 2025 after Companies House introduced new registration requirements.

Ten of Britain's eleven regions and devolved nations saw registrations rise this year – a marked reversal of last year where every region recorded a fall. In total, 164 local authorities saw registrations rise in the first half of 2026, compared with just three increasing last year.

This rise comes despite an increase to Companies House fees in February 2026, which saw the cost of digital incorporation double from £50 to £100. While registrations remain below their 2024 peak of 456,430, this year's increase suggests business owners are beginning to adjust to the more stringent compliance requirements.

London dominance continues to grow 

Over a third of all business registrations were in London in the first half of 2026, with 133,148 new firms starting up – an increase from 114,905 registered in the same period last year. 

London boroughs took 8 of the top 10 spots for business creation per capita in Britain across all local authorities. Camden topped the list for the sixth year running, with 9,847 new businesses per 100,000 residents, followed by Hackney with 6,250, and Islington with 6,016. 

Outside London, Manchester was the highest-ranked local authority in Britain, coming 7th nationally with 1,308 new businesses per 100,000 residents, up from 13th last year. Herefordshire was the only other authority outside of the capital to be placed in the top ten, rising from 29th to 9th position with 1,169 new businesses registered per 100,000 residents.

Mixed fortunes for Scotland and Wales 

Scotland saw the highest growth in business creation of any region or nation in Britain, with registrations up 16% to 20,720, recovering from a 17% fall the previous year. Glasgow retained its position as Scotland's leading business hub for the sixth year running, with registrations up 9% to 4,236, ahead of Edinburgh with 3,293. 

In contrast, Wales was the only nation or region in Britain to see registrations fall, down 23% year-on-year to 11,668, following last year's 39% decline. Cardiff, Wales' leading business hub, saw registrations fall a further 55%, on top of last year's 52% drop – the largest fall of any local authority in Britain.

Seema Desai, Chief Operations Officer at iwoca, said: “New businesses are a strong indicator of confidence in the economy, so it's encouraging to see registrations bounce back this year following last year’s slowdown. Despite uncertain economic headwinds, the fact that almost 400,000 new businesses launched in just six months is a strong signal that Britain’s entrepreneurial appetite hasn’t gone away.”