Analysis of data from Companies House reveals 774,420 new businesses registered last year, up 3.5% from 2021. The number of new UK businesses incorporated in the full year of 2022 (1 January – 31 December) was also 19% higher than five years previously, according to analysis of Companies House data by B2B PR agency, Definition.

However, the data also suggests a significant slowdown in this growth rate over the last two years, most likely as a result of the impact of the Covid-19 pandemic and an uncertain economic environment.

In 2020, there were 13% more businesses registered than the previous year, compared to just a 3.5% increase between 2021 and 2022. In fact, 2021 was the only time during the five-year period in which the number of newly incorporated businesses was lower than in the previous year.

Online retail remained the most commonly registered type of business last year, with the annual number being 225% higher than in 2018. The data further reveals that online retail leapt from ninth most popular category in 2019 to reach the top spot in 2020, replacing management consultancy.

The top ten most popular types of business incorporated in 2022 were:

1. Retail sale via mail order houses or via Internet
2. Buying and selling of own real estate
3. Other letting and operating of own or leased real estate
4. Management consultancy activities other than financial management
5. Freight transport by road
6. Other service activities n.e.c.
7. Information technology consultancy activities
8. Other retail sale not in stores, stalls or markets
9. Other business support service activities n.e.c.
10. Take-away food shops and mobile food stands

Matthew Robinson, client services director, Definition, commented: “Our analysis of this Companies House data suggests that, despite seismic socio-economic events, the UK’s entrepreneurial spirit remains strong as, over the past five years, there has been a steady increase in the number of new companies established annually.

“Perhaps unsurprisingly, 2020 stands out as a very significant year – with the number of new online retail businesses established being more than double that of the previous year. This alone contributed massively to new business activity at the height of the pandemic. It remains to date the most popular type of business venture – and it’s hard to see that changing any time soon.”