In the following article we take a closer look at the numbers of s.r.o. companies established, as well as companies, trade licences and self-employed persons closed down, over the past 8 years.

How have the numbers of newly established and dissolved companies developed in recent years?

Between 2012 and 2019 inclusive, the record year for company formations was 2013, when some 27,257 companies were set up. By far the largest share of these were limited liability companies, totalling 26,751.

In second place that year, a long way behind, were non-profit organisations and foundations, of which 401 were established.

Let us stay with 2013 a little longer, since the boom in formations of these companies was closely linked to the change in the way registered capital had to be paid up, introduced in October of that year. In that month alone, some 4,251 companies were founded – an increase of just over 100% on September, when “only” 2,609 were set up.

As for closures, the highest number of companies dissolved was recorded in 2015, with 8,972 entities ceasing to exist. Once again, limited liability companies led the way with 8,492; however, the largest number of s.r.o. closures came not in that year but two years later, in 2017, when 8,566 were dissolved.

According to the statistics, the most companies were dissolved between 2015 and 2017. This was due to the introduction of tax licences.

How are trade licences and self-employed persons faring? Are their numbers as striking as those of trading companies?

With the exception of 2014, the number of new trade licences and self-employed persons has been rising, whereas closures have shown no clear upward or downward trend.

The largest number of trade licences and self-employed registrations was recorded last year – roughly double the number of s.r.o. companies formed in their record year, at 43,933! Last year also saw the most trade licences and self-employed registrations closed, totalling 52,637.

Overall, more trade licences are closed than opened; the only exception was 2017, when new trade licences and self-employed registrations exceeded closures by 5,328.

The most balanced year in terms of openings and closures of trade licences and self-employed registrations was 2018, when the difference was only 598 entities, in favour of closures.

What does the picture look like for the Bratislava Region when we separate its figures from the national statistics?

As in the national statistics, 2013 takes first place for company formations, with a total of 9,092. The difference compared with the Slovak average lies in the timing of closures: while nationally the most companies were dissolved in 2015, the Bratislava Region felt this increase only in 2016.

In the Bratislava Region, last year was again favourable for new sole traders and self-employed persons, with the highest number of trade licences issued over the period under review, at 6,638. It was also the most balanced year in terms of openings versus closures. However, it was not the only year in which more trade licences were opened than closed: 2017 and 2018 also deserve a mention, as openings exceeded closures in those years too.

Closures of trade licences and self-employed registrations peaked in 2013, at a total of 7,111.

How many companies, trade licences and self-employed registrations do you think are created on average every 24 hours?

For greater accuracy, if we take the figures for 2019, the results are very interesting.

In that year, for instance, just over 54 companies and more than 120 trade licences and self-employed registrations were created across Slovakia every 24 hours – just over 7 new entities an hour.

Breaking the statistics down further, in 2019 more than 18 companies a day were set up in the Bratislava Region, along with almost the same number of trade licences and self-employed registrations.

Are people rushing to set up, and close down, companies, trade licences and self-employed businesses at the start of this year?

The statistics show that, as of the date of writing (13 January 2020), 23 companies had been founded so far and 66 dissolved (of which 4 and 25 respectively in the Bratislava Region).

For trade licences the numbers are somewhat higher: in under two weeks of the new year, 1,898 trade licences and self-employed registrations were created and 3,043 closed (of which 262 and 299 respectively in the Bratislava Region). So the answer is yes – people are certainly in a hurry to deal with their paperwork right from the start of the year.

Source: finstat.sk