The figure represented a 3% increase on the previous year’s formations bringing the total number of registered companies in Scotland at the end of 2022 to 280,990. During the same period 27,318 businesses were dissolved resulting in a net gain of 7,840.

Glasgow came in first with most newly formed businesses at 7,323, followed by Edinburgh (5.491) and South Lanarkshire (2,216). In fourth and fifth were North Lanarkshire (1,985) and Fife (1,689).

The figures come as research from accountancy firm Azets revealed that almost one quarter of SME businesses do not have basic cash flow projection processes in place putting them at risk of serious cash flow problems.

Donald Boyd, partner and UK head of growth at Azets, said: “Far too many SMES still run their business based on cash in their bank account. Cashflow forecasting is critical to a healthy business and SMES need a minimum 13-week cashflow projection or risk running out of cash.

“SMES are often better placed to pivot, reinvent themselves, and change their business model whereas larger businesses find change more difficult and costly. Either way, cash remains king and cash forecasting is the basis of good management and a successful enterprise.”