A record number of new UK technology companies were incorporated in 2025, highlighting underlying confidence in the sector despite headwinds, according to leading audit, tax and consulting firm RSM UK.

RSM’s analysis shows there were 56,615 new tech incorporations in 2025, up 17% from 48,518 the previous year, and a 47% jump compared to five years ago (38,421).

Nearly all UK regions saw a record number of tech incorporations in 2025, apart from the South East, likely due to skills shortages which may be holding back growth. The biggest year-on-year rises were Wales (up 79%), the West Midlands (up 27%), and the East of England and North West (both up 24%).

Despite ongoing economic uncertainty throughout 2025, tech business leaders remain optimistic. RSM’s Technology Industry Outlook found over three-quarters (76%) said they feel confident their technology business will grow under the current government.

Georgie Bole, director at RSM UK, said: “The record number of new tech incorporations in 2025 is a clear sign of the strength and underlying confidence in UK tech.

“Despite consumer and business confidence being hit by constant waves of uncertainty last year, this doesn’t appear to have filtered through to the UK’s technology industry, which continues to make strides as a global leader in tech.

“The tech industry is highly attractive to investors and entrepreneurs given it cuts across and supports many other industries, and plays a key role in helping to fuel UK economic growth.

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“The UK government continues to show its commitment to the tech industry, with targeted funding in areas such as artificial intelligence, support for startups and scale ups, creative tax reliefs to encourage investment, as well as being a key growth-driving sector in the UK’s modern industrial strategy.

“However, one area that UK is falling short on is attracting and retaining the right skills and talent in tech. Failure to address this could hinder UK tech advancement.

“This needs to start with removing barriers to overseas recruitment as well as incentivising tech graduates from UK universities to remain in the UK, so our tech businesses benefit from the skills, knowledge and ideas needed to scale up.”

Number of new technology company incorporations – year-on-year comparison