UK tech incorporations boomed last year – up 22%

22 February 2023

The number of new technology companies incorporated in the UK increased by 22% in 2022, according to analysis of Companies House data by leading audit, tax and consulting firm RSM UK.

A total of 46,474 tech businesses were incorporated in 2022, up from 38,240 in 2021. The total number of incorporations in 2022 is nearly double the 23,531 companies in 2020, demonstrating sustained growth in new tech incorporations year-on-year.

The data cements tech as an area of huge growth across the UK. All regions in the UK saw an increase compared to 2021, with London being home to the highest number of tech incorporations (24,783). Eight of the ten regions in the UK saw increases on or above 22%.

Ben Bilsland, partner and Technology Industry Senior Analyst at RSM UK, said: ‘Despite the obvious economic challenges, it’s been another strong year for the tech industry. Whilst it is no surprise to see London at the centre of new tech incorporations, growth across all regions outside the capital is further evidence of the UK’s thriving tech industry. There is clearly appetite from entrepreneurs to start up new, innovative businesses and become part of the UK’s booming tech industry.

‘This crop of early-stage businesses will need support to scale. Access to funding will be crucial and the UK government will need to ensure that UK tech is an attractive place for both domestic and overseas investment. For many young innovative companies, R&D tax incentives are crucial cash inflows. For many, the recent changes to UK R&D schemes that reduced the amounts small companies can claim were not seen as a positive step towards supporting the early-stage ecosystem.

‘Innovation requires a world-class talent pool and UK tech will look to both education and immigration to build their workforces. Support from our universities and schools to build skills in STEM subjects and emergent areas such as Artificial Intelligence will be essential. Clarity over immigration policy will be required to ensure a healthy inflow of tech talent to fuel growing companies.’

Tech company incorporations by year

Region    2021 2022   % increase 
 East Midlands (England)  1,009  1,390  38%
 East of England  2,306  2,881  25%
 London  20,552  24,783  21%
 North East (England)  513  645  26%
 North West (England)  2,549  3,285  29%
 Northern Ireland  335  393  17%
 Scotland  1,124  1,367  22%
 South East (England)  4,375  4,812  10%
 South West (England)  1,627  2,075  28%
 Wales  728  882  21%
 West Midlands (England)  1,901  2,378  25%
 Yorkshire and The Humber  1,221  1,583  30%
 UK Total 38,240 46,474 22%
Ben Bilsland
Ben  Bilsland
Partner, Head of Technology
Ben Bilsland
Ben  Bilsland
Partner, Head of Technology