The Insolvency Service, part of the Department for Business Innovation and Skills, said the number of company liquidations rose 6.5 percent in the third quarter compared with a year ago to total 4,242, the highest since the fourth quarter of 2009.

"Insolvency numbers remain historically low compared to the levels seen after previous recessions, this is largely a result of the value of business assets currently too low for creditors to pursue -- they simply will not cover the debts they are owed," Frances Coulson, president for the trade body for insolvencies professionals R3, said in a statement.

"Consequently businesses are being allowed to stay afloat albeit as 'zombie' enterprises. When the economy begins to enjoy a period of sustained growth we are likely to see creditors being more aggressive in their pursuit of debtors."

"While current stresses may not be enough to push businesses over the edge, a prolonged period of distress will trigger an increase in formal insolvencies. The first few years after a recession are traditionally difficult as it will take some time for businesses to sufficiently rebuild their reserves to support expansion," he added.

The number of individuals who going insolvent fell by 11 percent on the year over the same period to 30,219, the data showed.