More than 363,000 businesses were registered between January and June 2025 in the UK.
Of these, more than 30% new business registrations were in London, at a total of 114,905.
This is the equivalent of 1,307 new businesses created per 100,000 residents in London.
With fraud on the rise, these numbers underscore the necessity for Londoners to know how to check if a business is legitimate.
Disclaimer: All the information provided was correct at the time of publication (October 2025) and was collected with the help of accredited tools and AI.
Why Londoners Need to Check Business Legitimacy – Stats and Insights
- Fraud now accounts for 41% of all crime in the UK. In 2024, there were over 3.3 million reported fraud cases, a 12% year-on-year jump, with £1.17 billion stolen. (UKFinance)
- London sees the most business start-ups and closures in the UK. Hundreds of companies sometimes share the same “virtual office” address in London (a common tactic among fraud businesses). (City of London Police)
- AI scams are on the rise as 54% of UK adults worry about AI-based deepfakes targeting online business legitimacy. (FinancialIT)
- Only one in eight fraud incidents is reported. The true scale of fraud in London and the UK is much higher than official numbers. (ONS)
Predictions and Insights on Business Checks
- By 2026, the UK will roll out digital ID checks for all new company directors and key people, which will close a loophole that lets fake companies slip through. (UK Government)
- As AI-driven fraud grows, so do countermeasures: banks and large London companies are now investing in AI-based anti-fraud tech, but small firms must stay vigilant and keep training staff.
- Expect new legal requirements for public registers of beneficial owners, especially for property-owning London companies. (UKFinance Annual Fraud Report 2024)
Verification Tools to Check if a Business Is Legitimate
- Companies House: For any UK limited company, check full registration details.
- HMRC VAT Checker: Instantly verify VAT numbers and match details.
- FCA Register: Essential for anything involving money, investment, or insurance.
- Trading Standards “Buy With Confidence”: For trades and local businesses, check if they are council-approved.
- London Business Directory: For business checks in and around London (only verified business get listed).
Want to check a sole trader in London? See our guide: How to Find Legitimate Sole Traders in London.
Key Essential Steps to Check Legitimacy
- Always Google the business address. Beware of PO boxes, virtual offices, or multiple businesses using the same address, especially in London. This is a red flag for “front” companies or mail drops.
- For tradespeople, look for TrustMark, Gas Safe Register, or the local council’s approved contractor list. Many London boroughs also maintain their own registers.
- Search for the company name plus “reviews” or “scam” on Google. Trustpilot and Google Reviews are essential—look for consistent negative patterns. For London firms, also check local Facebook groups or Nextdoor for neighbour feedback.
- Look up staff profiles. Genuine London businesses will have real people with London networks on LinkedIn. If no employees are listed or profiles look fake, treat this as a warning.
- London neighbourhood forums and Facebook groups are active in sharing scam warnings. A quick local search can sometimes save you thousands.
Using these official tools and steps can protect your money and reputation.
Londoners, in particular, should always double-check, use local resources, and never rush payments or contracts.
If you have anything further to add regarding this subject, we encourage you to reach out.
Passionate reporter and editor for the LBN Directory, sharing the latest London business news, trends, insights and more.
