"Business deaths" have fallen to their lowest level since 2012
In January-October 2024, 185.6 thousand legal entities ceased to operate in the Russian Federation. This is a record low figure for the same period at least since 2012, Izvestia calculated on the basis of statistics of the Federal Tax Service. Compared to last year, the number of closures decreased by 10%.
At the same time, 198.7 thousand new companies were registered in the country for 10 months - the minimum since the pandemic 2020. In 2023, 8% more legal entities opened in January-November.
Only in the last two years, the "birth rate" of companies exceeded their "death rate" for the first time since 2015. In 2023 - by 6 thousand, in 2024 - by 13 thousand. In total, as of November 2024, 3.2 million legal entities were registered in the Russian Federation.
According to the Federal Tax Service, the majority of companies (78%) were liquidated this year, simply excluding them from the Unified State Register of Legal Entities by decision of the tax authorities, said Ivan Yermokhin, a researcher at the Russia-OECD Center of the IPEI of the Presidential Academy. The reduction in the number of closed companies is largely due to the fact that the register has been cleared of one-day firms.
The remaining 22% of companies were liquidated due to bankruptcy, reorganization or closure by the legal entity's own decision.
Now in Russia, construction companies and importing companies are most often closed, said Freedom Finance Global analyst Vladimir Chernov. According to him, the former are shutting down due to a decrease in demand, while the latter are shutting down due to sanctions restrictions on settlements and deliveries. Opened mostly legal entities in the field of e-commerce, retail, IT and logistics on the background of increased demand, the expert added.
Read more in the exclusive material of Izvestia:
Business lives: "business mortality" has fallen to the minimum since 2012
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