Dental Company Formation Index
New dental company incorporations rose 139.2% between 2016 and 2025
A monthly index of new limited company formations under SIC 86230 (General dental practice activities), compiled from Companies House public records. Updated Apr 2026.
Key findings
- New dental companies (SIC 86230) grew from 950 in 2016 to 2,272 in 2025, a rise of 139.2%.
- In the 12 months to Apr 2026, 2,452 new dental companies were incorporated under SIC 86230.
- The all-time monthly record was 306 dental companies incorporated in Mar 2026.
- A consistent March spike is visible in the data across all years, driven by dentists incorporating before the 6 April tax-year boundary to capture a full year of company-level tax efficiency from day one.
Source: Companies House Advanced Search API, under the Open Government Licence v3.0. The most recent 2 months of data are provisional (Companies House indexing lag) and are excluded from the headline figures above.
Dental company formations by year
Each bar shows the number of new dental limited companies incorporated in that calendar year under SIC 86230. Only complete calendar years are shown. The post-2020 surge reflects both a broader rise in UK company formation and growing awareness of the tax advantages of operating through a limited dental company.
Monthly trend
The same measure shown month by month from mid-2015 to the present. The long climb is visible, with March spikes each year. The dashed tail marks the most recent 2 months, which are provisional because Companies House indexes very recent incorporations with a short lag.
Tax-year seasonality in dental incorporations
Averaged across 2016 to 2025, new dental company formations show a consistent March spike: the month before the UK tax year closes on 5 April runs well above the calendar-year monthly mean. The pattern is visible across every year in the series.
The most likely driver is tax-year-boundary planning. A dentist who incorporates before 6 April can open the company accounting period at the start of the new tax year, avoiding a split-year calculation and capturing a full year of company-level tax efficiency immediately. April itself falls back sharply as the pre-year-end rush completes. December is the seasonal low.
Average monthly dental company formations (SIC 86230, 2016-2025). Reference line shows the annual average.
Methodology and sources
Incorporations. For each month, we query the Companies House Advanced Search API for companies incorporated under SIC 86230 (General dental practice activities). Counts are gross: a company that has since been dissolved still appears on the register, so the series carries no survivorship bias. The most recent 2 months are provisional and excluded from headline figures.
Updated. Incorporations to Apr 2026 (settled data). Data generated Jul 2026.
- Companies House Advanced Search API (Companies House)
Download the formation data (CSV)
Free to cite and republish with attribution to Dental Finance Partners. This page is a data summary and does not constitute financial or tax advice.
Considering incorporating your dental practice?
The rise in dental company formations reflects a genuine financial advantage for many dentists. Whether you are an associate thinking about your first company, a principal restructuring an existing practice, or buying a practice through a holding company, getting the structure right matters. Our dental accountants work exclusively with dental professionals.
Frequently asked questions
What does the Dental Company Formation Index measure?
It counts the number of new limited companies incorporated each month under SIC code 86230 (General dental practice activities) from the Companies House public register. It is a leading indicator of growth in the limited company dental sector, covering NHS, mixed, and private dental practices. Counts are gross: companies that have since been dissolved remain on the register, so there is no survivorship bias.
Why are more dentists incorporating as limited companies?
Operating through a limited company can be more tax-efficient than sole-trader or partnership status at higher income levels. A dental company can pay a small salary plus dividends, potentially reducing income tax and National Insurance compared with being taxed entirely on self-employment income. The rise in dental company formations also reflects new practice ownership, associate dentists stepping up to principals, and practice acquisitions structured through holding companies.
Why is there a March peak in dental company formations?
March falls just before the UK tax year ends on 5 April. Dentists who incorporate before 6 April can start their company accounting period at the beginning of the new tax year, which simplifies overlap and avoids a split-year calculation. Incorporating in March captures a full year of company-level tax efficiency from day one. This tax-year-boundary incentive produces a consistent spike in the data across all years.
Where does this data come from?
All incorporation counts come from the Companies House Advanced Search API, which is the UK's official register of companies. The data is published under the Open Government Licence v3.0. The figures are updated monthly as Companies House releases new records. The most recent two months are provisional due to an indexing lag in the Companies House database.
How does incorporating help with dental practice tax planning?
A dental limited company is subject to Corporation Tax on its profits (currently 25% for profits above the main rate threshold, or 19% for small profits). The principal can then draw a combination of salary and dividends, which is often more tax-efficient than paying income tax and Class 4 National Insurance on the full profit as a sole trader. Associates and principals should model their own position: the right structure depends on income level, plans for retained earnings, and NHS contract arrangements. Our dental accountants can prepare a personal tax comparison.