Last Updated on November 6, 2025 by Joy Kyalo
Even though businesses are being charged high payroll taxes and minimum wage, the corporate market in Scotland is reported to be showing some growth.
According to the recent comments by NatWest Bank chief, Paul Thwaite, the mid-market businesses in Scotland are gradually expanding, indicating the strength of Scotland in its economic growth.
During the first quarter of 2025, Scotland was hit hard by economic issues caused by global uncertainties and pressure costs but in Quarter two (April – June), Scotland was showing signs of economic recovery as the country showed a slight 1.18 percent rise in the pull of new companies rising, as opposed to declining in the rest of the UK.
Based on the most recent quarterly news from the registrar, the number of incorporations in Scotland increased, whilst in England & Wales and Northern Ireland, there were negative growths of -0.70% and -1.92%, respectively.
Although the main economic growth boosters in Scotland are tourism and technology, business services, financial services, and renewable energy industries are also on the positive growth side.
Key Takeaways
- Scotland’s economy is growing, with strong contributions from technology, tourism, finance, and renewable energy sectors driving new company registrations.
- Incorporating in Scotland offers benefits such as a distinct legal system, competitive tax rates, and a supportive business environment for entrepreneurs.
- BusinAssist simplifies company formation, offering virtual office addresses in Glasgow and step-by-step support to help you register your Scottish limited company with ease.
Scotland’s Market Snapshot
The Scottish technology industry has recorded a great positive growth, with media and telecom as the main contributors to employment. Whereas other parts of the UK were slowing in the number of IT firm incorporations, the statistics show that 1,663 IT firms were incorporated in the year 2024, in contrast to 1,553 in the previous year of 2023.
Gaming dominates the IT industry in Scotland. There has been heavy growth in the gaming industry sector as companies dealing with gaming developments are incorporated. But it is not the largest component. Additional areas of focus are fintech, cybersecurity, data science, and software development.
The other industry that is fast becoming a contributor to the economy of Scotland is the travel and tourism industry. The travel and tourism industry has been one of the most attractive sectors in the Scottish economy, as far as the service sector is concerned, in 2025.
Pro Tip: For Entrepreneurs
Focus your business in Scotland’s high-growth sectors like fintech, renewables, tourism, and gaming technology. These industries attract strong government incentives and investor funding, offering startups the best chance for long-term success.
A recent report released by the Royal Bank of Scotland shows that it has been on stable growth since May due to business services and the sub-sectors of travel, tourism, and leisure.
The other industry that is expanding in Scotland is the financial services industry. New research by EY indicates that Scotland’s financial services would increase by up to 21 percent by 2028 and place Edinburgh among the top 10 global financial centres.
This is based on ‘One City’ by TheCityUK, which states that financial services already contribute 10 percent of the economy and support 149,000 jobs. The main hubs include Edinburgh and Glasgow.
Meanwhile, FinTech Scotland has recorded 8 percent growth in 2024 in employment to over 11,300 people and an investment sum of 18 million, prompted by the Financial Regulation Innovation Lab (FRIL).
Another industry that sustains 42,000 jobs and generates GVA of 9.1billion is renewable energy, with floating offshore wind, ScotWind leases, and green energy zones set to be the next major projects. Scotland is on course to see more than £ 100 billion of investment in renewables in the Highlands over the forthcoming decades, and this has the potential to create 18,000 jobs as major renewable projects, from wind to green hydrogen, are being developed.
Offshore wind, hydroelectric generation, tidal, and solar energy control the growth of the renewable energy industry in Scotland. In Scotland, the electricity demand is covered by renewable technologies by 113 percent, with wind and hydro technology leading in this segment.
The government also provides these green businesses with government contributions in the form of grants, subsidies, and tax holidays, leading to their expansion.
| Sector | GVA (£bn) | Jobs Supported | Economic Role |
| Financial service | 14.3 | 145,000 | Largest economic contributor |
| Digital and Technology | 6.8 | 76,000 | Rapidly growing, innovation-led |
| Tourism | – | 245,000 | Major employment and revenue generator |
| Energy transition | 9.1 | 42,000 | Infrastructure transformation, green jobs |
Why choose Scotland for company registration?
Distinct legal framework:
While still under the UK membership, Scotland has its distinct legal framework, which attracts business owners who operate in multiple jurisdictions. A legal system removes some barriers to transnational hassle, especially for international entrepreneurs, increasing privacy and flexibility.
Competitive costs:
Finland and Scotland are the two leading countries in the EU in terms of providing business-friendly rates as well as low business taxes, which results in an ever-increasing demand among businessmen. The economic business tax rates allow business owners to save and invest more money for their business operations.
Best tax regime:
The corporate tax in Scotland is competitively set, and there are a number of tax reliefs available for small businesses.
Supportive business environment:
The Scottish business environment is supportive of entrepreneurs and actively tries to help them succeed with practical action plans, and provides grants or subsidies to enterprises that qualify. In addition, Scottish universities provide the country with a steady supply of educated and skilled graduates, so that companies will always have a skilled talent pool. Startups and companies moving to Scotland will receive assistance in the form of guaranteed funding and assistance with networking.
Access to the global market:
Incorporating a company in Scotland gives you access to the UK market, making it easier to grow and expand your business.
Challenges facing new companies in Scotland
High operating costs also reduce confidence. In Q4 2024, the Small Business Index fell to -67.2, the lowest since the early pandemic, a sign of increasing startup pressure.
Cost of living issues: A recent Financial Times article cites high living costs as a major challenge; 46% of financial services leaders believe it adds a competitive disadvantage, with an additional estimated 1,500-3,300 in extra tax on salaries between 30k and 100k.
Lack of access to capital and support: Funding issues, limited R&D support, and talent issues are common barriers to growth cited by many fintech leaders.
Policy & Admin friction: Incorporating a company in Scotland now involves a layer of administrative burden from having an ‘appropriate address’, email, and lawful-purpose declarations.
Almost a third of financial services leaders in Scotland (30%) have cited the reduced amount of government support and investment in research and development (R&D) as a competitive disadvantage in Scotland.
Understanding limited companies you can form in Scotland
Scotland company formation involves registering a type of limited company, which business owners should gain an understanding of before diving in. There are numerous advantages of a limited company, such as limited business obligations, which mitigate risk exposure and boost the company’s reputation.
Private Limited Company (Ltd): This is a popular type of business structure that most business owners take. It limits the number of shares an owner can hold, and neither can they be bought nor sold in the open market.
Public Limited Company (PLC): This type of company is less common among small firms but significant to large ones, since this allows them to acquire capital by appealing to the people through investments.
Required incorporation documents in Scotland
To register a Scottish private limited company, you will need;
- Company name
- Standard Industrial Code (SIC)
- Registered office address in Scotland
- Registered email address (not publicly accessible)
- Director(s) details
- Shareholders details
- Persons with significant control (PSCs) details
- Memorandum of Association
- Articles of Association
Steps to register a Scottish limited company with BusinAssist
Company name availability
Every company needs a unique company name that complies with Companies House regulations. BusinAssist offers a Company Name Checker tool to ensure all our clients’ company names are available and meet the Registrar’s regulations.
Registered office address
Once the name is available, you can start the UK company registration process online through our website. To register a company, you will need a Scottish registered office address. Not to worry if you do not have one, since BusinAssist has a virtual business address in Glasgow, Scotland, along Sauchiehall Street, which you can rent. By choosing to rent our address, the UK company formation services will be offered for free. To complete this process, choose the package ‘company formation with privacy’ and proceed to the application form.
Pro Tip: For New Founders
Before registering your Scottish company, secure a professional virtual office address and verify your company name to stay compliant with Companies House. Using BusinAssist’s Glasgow virtual address and name checker can streamline your setup and help you launch faster with full legal compliance.
Choose the address and package
BusinAssist offers various business addresses in the UK, but in this step, you will choose Scotland since you are incorporating a Scottish company. The address comes with several packages from basic, standard, advanced, and premium. These packages are designed to cater to every business’s budget and come with different features. Once you choose a package that suits your budget, you will either be allocated the next available office or suite number in the chosen address, or you can build your own unique address. The choice is yours.
Provide business details
Fill in your business details from the preferred company name, the main business activities, registered email, and director(s) details. The next step is choosing additional services that come at discounted prices. They include: company formation protection, certified documents, creation of company logo, application of EORI number, VAT application, Government Gateway account setup, UK virtual mobile number, printed company documents, UK trademark registration, call answering services, UK VoIP landline number, and many more.
Bank account
BusinAssist has partnered with several banks to offer our clients a free business bank account and still get up to £50 cash reward. The banks include Barclays, Tide, Transwap, Anna, Monzo, World First, and Revolut.
Payment of fees
Once the application is complete, pay the expected fees, and your order will be processed. Depending on the payment frequency you choose, your card will be credited automatically on the anniversary of when the order was made.
Company registration in Scotland can be a rewarding process that sets the foundation for your business success. Remember to seek professional advice if needed, as this can help you avoid common pitfalls and ensure compliance with all legal requirements.
Starting your journey as a limited company in Scotland is just a few steps away. BusinAssist offers Scotland company registration and a Scotland virtual office address that can be used for incorporating a company.
FAQs
Q: How long does it take to register a company in Scotland?
Ans: You can register a company in Scotland as quickly as possible. Your company can be registered within 24 hours if you use the online registration process. However, the processing time can vary depending on several factors such as Companies House workload, complexity of the application, and the registration method.
Q: Can an English company have a registered office in Scotland?
Ans: No, it cannot. An English company’s registered office address must be physically located in England where the company is registered.
Q: Can I start a company in Scotland abroad?
Ans: Non-residents can start a company in Scotland using a Scottish virtual office address, as there are no residency requirements.
Q: Does Companies House cover Scotland?
Ans: Companies House covers Scotland since it is the official registrar of companies in the UK. It has separate registrars for each jurisdiction, with Companies House Edinburgh, which handles companies registered in Scotland.
Q: Can I move my company from England to Scotland?
Ans: To move your company from England to Scotland, you will be required to re-register it. This is because you will be required to use Scotland’s registered office address.
Q: Do I need to register for VAT after company registration in Scotland?
Ans: You need to register for VAT after company registration when your turnover exceeds the current threshold of £90,000.
Q: Do I need a company formation agent for company registration in Scotland?
Ans: It is not mandatory to have a UK company formation agent for registering a Scottish limited company; however, it is recommended if you are new to the process and seeking additional services.
Read Also:
- Company Registration in Northern Ireland: How to Form Your Business the Right Way
- Best Company Formation Agents in the UK 2025: Choose BusinAssist for a Smooth Start
- How to Incorporate a Company in the UK: Key Steps and Requirements
- How to Register a Company in UK from India: Complete Guide
- How to Start a UK Ltd Company from Pakistan: Step-by-Step Guide
- How Much Does It Cost to Set Up a Limited Company UK?
- How to Form a UK Company as a Non-UK Resident? – A Complete Guide
Joy is a content writer at BusinAssist with 6+ years of experience in content marketing and social media strategy. She specialises in company formation and virtual operations, guiding entrepreneurs through global markets with clarity, drawing on her marketing and PR background. Business Assist with BusinAssist – your business success partner.