The UK also makes company formation very easy and still slightly advantageous for sole traders, which may be a factor. I did check the criteria and they do include "must be listed for VAT or PAYE", so they're all real businesses to some extent and not just shells.
The US would do well to look at its business licensing requirements to see if they could be simplified in terms of paperwork.
The US would do well to look at its business licensing requirements to see if they could be simplified in terms of paperwork.