Over 20,000 new businesses were set up in Wales in 2022 reaching a record high for company formations, new data suggests. A total of 22,120 new Welsh firms were registered last year, an increase of 3.4% on the previous 12 months.
While the number of companies that were dissolved in the same year was at 20,052, falling slightly on 2021 figures of 21,319. This meant there were a total of 149,358 firms in Wales by the end of 2022 – an overall growth of 6.6% compared to 2021.
Cardiff saw the most company formations in 2022 recording over 7,000, followed by Swansea and Newport. The Isle of Anglesey saw the fewest number of new business formations last year at 228.
Read more: The three bids competing to become Wales’ first freeport
Wales Counties
New Company Formations in 2022
Total Number of Companies end 2022
Cardiff
7210
36593
Swansea
1616
12110
Newport
1320
8257
Rhondda Cynon Taf
1236
8002
Carmarthenshire
915
7577
In terms of the types of companies formed last year in Wales, 96.7% (21,390) were private limited, with 3.3% (730) listed as other company types. Over 36,000 businesses are currently registered in Cardiff, the highest of any region in Wales. Swansea was second at 12,110 and Newport third with 8,257.
However, when compared to the rest of the UK, Wales fell below the national average for new incorporations in 2022 per 1000 people, coming in at 7.2 against the UK’s average of 12.7.
The UK saw 805,141 new companies, compared to 771,617 in 2021, which represents an increase of 4.3% and brings the total number of companies to 5,236,227. Of the 703,785 formations in England, well over one third were in London (274,838). 35,158 were in Scotland and 8,575 in Northern Ireland.
Dissolutions of UK companies totalled 578,679, down on 2021 when 606,912 were recorded, suggesting that new and existing businesses are adapting to survive in a post-pandemic business environment.
The data was published by formation specialist Inform Direct using data from Companies House and ONS.
John Korchak, operations director at Inform Direct said: “It is great news to see that Wales can celebrate a double record year for business growth in 2022. The last few years have been turbulent for businesses, with inflation and a cautious economic outlook following the impact of the pandemic. However, in these figures we see evidence of the ambition, creativity and resilience of entrepreneurs in Wales, as well as the benefits from the country’s support for a range of enterprises.
“This positivity is mirrored in the overall picture for the UK which saw a record number of new companies established during 2022, exceeding 800,000 for the very first time.”
Sign up to the BusinessLive Wales newsletter and follow us on LinkedInAs well as an in-depth early morning newsletter, we will be sending out regular breaking news email alerts. To sign up to this service CLICK HERE
And, follow us on LinkedIn to catch the latest stories and to network with the Welsh business community.
Read more:
Audio production firm wins contract to produce BBC Radio 2 Early Breakfast ShowAdra to build 900 new homes for North Wales by 2025 following £40m loan
Welsh cyber security firm Hut Six in six-figure equity boost
Welsh university research projects face ‘urgent cliff edge’ over end of EU funds
Freeport status should go to more than one port in Wales say Welsh Tories
