Overall company growth in Scotland drops as the number of businesses closing down during 2021 reaches record high.

For the first time since 2016, new company formations in Scotland decreased in 2021, with 33,988 new companies formed during the year, a decrease of almost 1% on 2020 which saw 34,280 new company formations.

Further to this, 27,351 existing companies were dissolved during 2021 in England, an increase of 12.4% on 2020 and also a record high for the country.

Still, the total number of companies registered in Scotland reached an all-time high of 272,770 by the end of 2021.

Glasgow continued to dominate company formation activity, with 7,283 new companies started. There were 5,312 companies incorporated in Edinburgh, 2,077 in South Lanarkshire, 1,880 in North Lanarkshire and 1,599 in Fife. This means that these 5 counties alone account for almost 55% of all new incorporations in Scotland during 2021.

Our infographic below tells some of the important stories behind those who took the step in 2021 to form a company in Scotland. It offers a visual breakdown of where companies are formed and compares the 2021 performance across Scotland both with previous years and other nations of the UK.

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