UK Agency Formation Index
New advertising agency incorporations in the UK rose 296.5% between 2016 and 2025
A sourced, monthly read on new agency company formations across the UK, drawn from Companies House public records. Covering 7 agency SIC codes from advertising to IT consultancy. Updated Apr 2026.
Key findings
- New advertising agencies (SIC 73110) grew from 3,694 in 2016 to 14,645 in 2025, a change of 296.5%.
- In the 12 months to Apr 2026, 78,419 UK agency-cluster companies were incorporated across all 7 SIC codes.
- Formations peaked in 2025 10 at 1,427 advertising agencies in a single month, the highest on record.
- The all-agency union changed 104.2% over the decade, from 36,090 to 73,680 annually.
- Year-on-year growth in Apr 2026 was +6.0% for advertising agencies.
Source: Companies House Advanced Search API, under the Open Government Licence v3.0. Figures may be cited with attribution to Agency Founder Finance. The most recent 2 months of incorporation data are provisional (Companies House indexing lag) and excluded from headline figures.
Advertising agency formations by year
Each bar shows the number of new companies incorporated in that calendar year under SIC code 73110, advertising agencies. Only complete calendar years are shown.
The monthly trend
The same measure shown month by month. The dashed tail marks the most recent 2 months, which are provisional because Companies House indexes very recent incorporations with a short lag.
By agency SIC code
The table below breaks down formations by all 7 agency SIC codes for Apr 2026, ranked by trailing-12-month total.
| SIC code | What it covers | Latest month | TTM (settled) |
|---|---|---|---|
| 62012 | Business and domestic software development | 3,818 | 33,043 |
| 62020 | Information technology consultancy activities | 2,660 | 29,880 |
| 73110 | Advertising agencies | 1,272 | 15,067 |
| 74100 | Specialised design activities | 662 | 8,295 |
| 73120 | Media representation | 199 | 3,001 |
| 70210 | Public relations and communications | 205 | 2,833 |
| 73200 | Market research and public opinion polling | 73 | 1,001 |
| All 7 codes (deduplicated) | Unique companies across all agency SIC codes | 7,405 | 78,419 |
Creative agencies vs software & IT consultancy
The agency SIC cluster splits into two groups: creative and communications agencies (advertising, media representation, PR, design and market research) and software and IT consultancy (business/domestic software development and IT consultancy), which straddle "agency" and "software house". This chart keeps them visibly separate rather than blending them into one union figure.
Formation seasonality: when agencies get founded
Averaged across 2016 to 2025 (complete calendar years only), new agency company formations show a seasonal pattern across the year. March, the month before the UK tax year closes on 5 April, is highlighted below.
Average monthly incorporations (all-agency union, 2016-2025).
Methodology and sources
Incorporations. For each month, we query the Companies House Advanced Search API for companies incorporated under each of the 7 agency SIC codes: 73110, 73120, 70210, 74100, 73200, 62012 and 62020. The deduplicated union counts each company once even where it registers under multiple codes from the cluster. Counts are gross: a company that has since been dissolved still appears on the register. The most recent 2 months are provisional and excluded from headline figures.
Incorporation counts are gross: they are drawn from the Companies House Advanced Search API, which counts companies by incorporation date across all company statuses. Union is the deduplicated count across all 7 agency-cluster SIC codes -- a company registering multiple SIC codes from the set is counted once. Companies that have since been dissolved are still included in the year they were formed (Companies House retains dissolved records for roughly 20 years, so nothing in this series' range has been purged), so the series carries no survivorship bias. SIC codes are self-reported by the filing company; agencies commonly straddle 73110 (advertising), 74100 (design) and 62012/62020 (software/IT consultancy) depending on how the founder classified the business at incorporation. The most recent 2 months are provisional (Companies House indexing lag) and are excluded from headline figures and decade comparisons.
Updated. Incorporations to Apr 2026 (settled data). Data generated 2026-07-23.
- Companies House Advanced Search API (Companies House)
Download the incorporation data (CSV)
Free to cite and republish with attribution to Agency Founder Finance. This page is a data summary and does not constitute tax or business advice on any individual situation.
Starting an agency, or thinking about incorporating? Get it right from day one.
The rise in agency company formations reflects a broader shift towards limited company working. Whether you are just starting out or already trading as a sole trader, understanding the incorporation decision matters for your tax position. Our team specialises exclusively in agency founders.
Frequently asked questions
What does the UK Agency Formation Index measure?
It counts new companies incorporated each month under 7 agency Standard Industrial Classification (SIC) codes, drawn from Companies House public records: advertising agencies, media representation, PR and communications, specialised design, market research, software development and IT consultancy. The headline figure tracks SIC 73110 (advertising agencies) as the primary measure, alongside the deduplicated union of all 7 codes as a broader all-agency figure. Counts are gross: companies that have since been dissolved remain on the register.
Does this include every kind of agency?
It covers the SIC codes agencies most commonly register under, but SIC classification is self-reported at incorporation and imperfect. A performance-marketing agency might register as 73110 (advertising) or 62020 (IT consultancy) depending on how the founder saw the business at the time. The union figure catches companies across the whole 7-code cluster, but some agencies will inevitably sit outside it (e.g. under a generic 'other business activities' code) and some non-agency businesses will sit inside it (e.g. management-focused software consultancies under 62020).
Where does this data come from?
All incorporation counts come from the Companies House Advanced Search API. Companies House is the UK register of companies, operated by His Majesty's Government, and its data is published under the Open Government Licence v3.0. Figures are updated as Companies House releases new records, though the most recent two months are provisional due to indexing lag.
What does 'provisional' mean on the chart?
Companies House indexes very recent incorporations with a short lag. The two most recent months in the series are therefore provisional and will be revised upward as late-indexed records are captured. These months are shown as a dashed tail on the chart and excluded from all headline figures and decade comparisons.
Do these counts have survivorship bias?
No. The counts are gross: the Companies House Advanced Search API counts companies by incorporation date across all company statuses, so a company formed in an earlier year and dissolved since is still counted in the year it was formed. Companies House retains dissolved company records for roughly 20 years after dissolution, so nothing within this series' range has been purged from the search index. The formation totals therefore reflect all companies originally incorporated in each year, not just those still active today.
Should I incorporate my agency as a limited company?
It depends on your income level, growth plans and how you plan to draw money from the business. Operating through a company can be more tax-efficient at higher profit levels but brings compliance obligations including Corporation Tax returns, payroll and Companies House filings. Our incorporation guide and team can help you work through the decision for your specific circumstances.