As we covered in a post last week, the UK yielded its largest year-on-year Q3 2020 increase in limited companies incorporations at the Companies House since quarterly data began to be recorded in 2012.
While this clearly shows the resiliency of the British market, it is useful to breakdown some of the related data to discover some additional insights — and how virtual offices could be linked to this trend.
While the number of incorporations posted record numbers, the amount of dissolutions sharply reduced. This phenomenon is partly due to a couple of reasons:
As part of the Government's plan to support businesses, Companies House paused its strike off process related to dissolutions, allowing companies affected by the pandemic the time to re-organise and update their registry accordingly;
In line with this strategy, compulsory dissolutions were temporarily paused from the beginning of April 2020, and similarly voluntary dissolutions have been put on hold.
These actions resulted in Q3 dissolutions decreasing by more than 20% to 27,576 – one of the lowest levels in the past 8 years — as shown in the graph below.
Source: Incorporated Companies in the UK, July to September 2020, Companies House
While it is expected for the Government to continue its support to UK businesses, if there is one thing that the current scenario has taught us, is the paramount importance of planning and flexibility.
Virtual Office solutions are certainly a great tool to achieve additional flexibility, reduce fixed costs, and allow to safeguard business continuity regardless of the high levels of uncertainty. Learn more about the additional benefits that a virtual office can bring, by exploring this blogpost.
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If you want to learn more about how we can help you with virtual office solutions, get in touch with The Entrepreneurs Private Office. We offer FREE initial consultations entirely dedicated to understanding your needs!