Official statistics show around 24,000 UK company insolvencies each year — yet more than 660,000 companies disappear through the Companies House strike-off process.
Official UK Company Insolvency Statistics
When people discuss business failure in the UK, they usually focus on UK company insolvency statistics. Figures published by the Insolvency Service show that around 23,900 companies entered formal insolvency procedures in England and Wales during 2025. Most cases involved creditors’ voluntary liquidation, compulsory liquidation, or administration.
However, UK company insolvencies tell only part of the story. Data from Companies House shows that more than 660,000 companies were dissolved during the same period. This means roughly 12,750 UK companies disappear every week.
The difference between company insolvencies and company dissolutions in the UK is striking. Insolvency procedures attract most of the attention. Yet they represent only a small share of business closures. More than 95% of companies that stop trading never enter formal insolvency proceedings. Instead, they disappear through the Companies House strike-off process.
UK Company Closures – Insolvencies vs Dissolutions
The contrast becomes clearer when the figures are viewed side by side.
| Type of Closure | Approx Annual Cases | Typical Weekly Level |
|---|---|---|
| Formal Company Insolvencies (liquidations & administrations) | ~23,900 | ~460 |
| Voluntary Strike-Offs (director application – DS01) | ~530,000 | ~10,200 |
| Compulsory Strike-Offs (Companies House enforcement) | ~130,000 | ~2,500 |
| Total Companies Dissolved | ~663,000 | ~12,750 |
These figures show that formal UK company insolvencies account for only a small proportion of closures. Most companies disappear through the Companies House dissolution process.
Why So Many Companies Are Dissolved Instead of Liquidated
Government policy partly explains these figures. The UK encourages people to start businesses, even though some ventures will fail. Limited liability supports this approach. It allows entrepreneurs to take commercial risks without exposing themselves to unlimited personal liability.
Many years ago I raised this issue during a meeting with what was then the Department of Trade. I questioned the number of company failures and the ease with which some businesses could close on a Friday and reopen under a similar name on Monday. Officials gave a clear response. A healthy economy requires people to attempt new ventures. Policymakers accept that some companies will fail.
The United States follows a similar approach. In the US, people often see business failure as part of normal entrepreneurship rather than a lasting stigma.
The Importance of Information Sharing in Credit Risk
Many companies fail because their business model does not work or trading conditions become difficult. However, some businesses do exploit weaknesses in the system. Suppliers often recognise familiar patterns. A company stops trading, leaves unpaid debts, and a new entity soon appears with a similar name, the same directors, staff or trading address.
In these situations, timely information sharing becomes extremely valuable. When businesses share factual trading experiences and credit information, they can identify emerging risks earlier. This helps prevent the same problems from repeating elsewhere.
Further Analysis of UK Company Dissolutions
Future articles will examine UK company insolvencies and company dissolutions in more detail. We will also look at how the Companies House strike-off process works in practice. This includes the difference between voluntary strike-offs and compulsory strike-offs and what these trends mean for suppliers and credit managers.
If you see similar patterns within your own customer base, sharing accurate trading information can help others avoid the same problems. Businesses can register for free and contribute factual credit information at creditcontrolroom.com.
Insolvency statistics tell only part of the story of business failure in the UK.
