Company Bug has predicted that 2013 could be a positive year for contractors and small businesses.

Friday 22 February 2013

Company Bug has said that it expects 2013 to be a good year for setting up or maintaining a small limited company in the UK.

The advice website has based its prediction on a range of factors, but chief among them is the latest set of business survival data from the Office for National Statistics (ONS). The figures show that the birth and death rates for businesses have become much closer. Births rose by 11.2 per cent while deaths fell by nearly eight per cent.

Birth rates were highest in the information and communication, scientific and technical, and business administration and support industries, while healthcare had the lowest death rate at just over six per cent.

Since these industries are home to some of the largest concentrations of contractors and consultants, it appears that there may be ever-growing opportunities for them and other small limited companies around the UK.

Although the business survival rate over five years was 45 per cent because the five years measured spanned from 2006 to 2011, the figures necessarily demonstrate the toll the financial crisis took on private businesses. With the business birth rate having risen substantially by 2011, it is possible that survival rates will improve over the next few years.

According to Company Bug, there are other indicators that business might pick up throughout the coming year. Business registration, for example, has become easier, thanks to a low fee of £15 for those who form a company directly using the Companies House Web Incorporation Service.

An application via the Companies House website can take as little as 15 minutes, while submitting paperwork electronically has made business administration quicker and simpler. Over 70 per cent of documents accepted were handed in electronically last month.

In addition, the Companies Act has helped to simplify the incorporation process, involving fewer regulations and meaning that limited companies do not have to have a secretary.

Companies House statistics show that 2,747,105 active companies were on its register at the end of January.

By Victoria McDonnell

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