The Creation Of Companies In Spain Grows To Pre-Covid19 Rates In August

companies general

In August up to 5,407 new companies joined the Spanish business network compared to 5,407 in the same month last year, leaving behind five consecutive months of declines due to the Covid-19 crisis. This information is included in a report by the Association of Registrars, which points out that after the pandemic “the return to positive figures in this important indicator is completed.”

Specifically, the incorporation of companies grew by 8.4% year-on-year in August, compared to the 72.1% drop recorded in April, the 56.4% fall in May, the drop of 10 pct in June and the more moderate decline of 3.4% in July.

Meanwhile, the amount of capital increases recorded in the commercial registers directly reflect owners’ commitment to their business projects.

In terms of volume, the recovery which began in June has been maintained, with a drop of 11.1% in August compared to the same month last year.

As regards total insolvency proceedings, August 2020 shows a 4.6% drop in the annual rate of registrations of these processes compared to a year earlier. This is below the declines in June (16.1%) and in July (6.5%).

The registrars recall that during the first months of the pandemic insolvency proceedings had generally declined, by 84.8% in April and 76.1% in May. They were affected by the slowdown in internal communications, typical of the bankruptcy process, during the state of alarm.

This August, 148 voluntary bankruptices were registered, a decrease of 21.3% from the previous month. Meanwhile, there were 62 involuntary bankruptcies registered, reflecting a drop of 52.7%.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.