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April 29, 2018 3:51 pm | FILED UNDER: business

Formation Of New Companies Stalls

By ČTK

Prague, April 29 (CTK) – The number of new companies reached 8,416 in the first quarter of this year, almost 13 percent lower year on year, while in the whole of 2017 the highest number of new firms since pre-crisis year 2007 were newly registered, show databases and calculation of Bisnode consulting company.

 

“The drop in interest of entrepreneurs in setting up new firms may be an advanced signal that the economy will start slowing down in reaction to the overheating seen in the last few months, in particular due to lower economic growth abroad and related drop in demand for export goods and to the stronger crown,” Bisnode analyst Petra Stepanova commented on the data.

 

Last year’s record of 32,187 newly registered firms will probably not be surpassed this year, she forecast. “Despite that, the pace at which new businesses are being formed is still very fast,” she noted.

 

At the moment, 480,591 companies are active in the Czech Republic, 454,272 of them are limited-liability companies and 26,319 joint-stock companies.

 

Despite the fact that 8,416 new companies were set up in the first three months of this year, the total number of the registered companies increased by 4,973. This means that 3,443 companies ceased to exist in this period.

 

“Since 2014, the ratio of companies which ceased to exist to newly set-up companies has been growing. Still in 2014 it stood at 21 percent and this year it is 41 percent already. This is related to the gradual cleaning when dormant and uncompetitive firms are ceasing to exist,” Stepanova remarked.

 

No. of newly set up firms in 2015 – 2018:

 

2018

2017

2016

2015

month

limited-liability

joint-stock

total

total

total

total

January

2,961

70

3,031

3,092

2,253

2,083

February

2,537

60

2,597

3,137

2,362

2,270

March

2,728

60

2,788

3,411

2,426

2,559

April

2,410

2,281

2,310

May

2,603

2,271

1,944

June

2,733

2,128

2,323

July

1,918

1,743

1,973

August

2,476

2,069

1,840

September

2,219

2,231

2,114

October

2,694

2,489

2,331

November

2,815

3,490

2,561

December

2,679

3,094

2,645

 

*statistics comprise only limited-liability and joint-stock companies, not other types of companies.

 

Source: Bisnode

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