The UK's official company register experienced its first-ever decline by the end of 2024, with 5,408,707 businesses recorded, 19,879 fewer than the previous quarter. The "effective register" fell by 59,495, largely due to Companies House's new powers for stricter policing amidst an economic downturn. In Q4, 203,584 companies dissolved, an increase of 24.6%, while new registrations dropped by 15.5%. Factors include rising inflation, tax burdens, and increasing labor costs leading many entrepreneurs to reconsider incorporating their ventures, opting instead for simpler sole trader status.
"You've got to do your compliance with Companies House. You've got to keep your minutes, your dividend payments. All those need to be in real time."
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