Brexit vote shows little effect on rate of company startups

A new study has shown that there is, as yet, no major impact on new company formations, or company closures, in England and Wales since the Brexit vote. 

The study, undertaken by company information provider checkcompany.co.uk, looked at the monthly number of new company formations at Companies House, (the company register for England and Wales) since 2014 to see whether Brexit had impacted startup activity. The survey showed that approximately 583,000 new companies were formed in the 11 months since the Brexit vote at the end of June, a figure that is down just over 2% on the year before, but up 6% on the equivalent period in 2014-15. Allowing for some natural fluctuation the numbers, this so far indicates that Brexit is yet to make a serious impact on new company startup activity.

Checkcompany also looked at average company size, as indicated by the number of company officers appointed. Here, checkcompany found that companies incorporated since the Brexit vote were on average 5% smaller - although it is probably too early to draw firm conclusions from this.