In 2022, Over 100,000 New Companies Were Created in the Czech Republic, Which Is the Most Since 1994

Prague - Over 100,000 new businesses were founded in the Czech Republic in 2022, which is the second-highest number since the country's independence from the Soviet Union in 1993 and the most since 1994. The region around Karlovy Vary has the fewest active new business owners while the majority of companies were founded in Prague.

Additionally, the number of failed businesses increased to almost 100,000, with self-employed individuals (OSV) making up three-quarters of them. The information provided by the business Imper, which offers an online database of companies, supports this.

In contrast to previous years, she claims that the majority of new businesses were founded in August, closely followed by January and October. This is contrary to the typical timing of the formation of new businesses, which is at the beginning of the year. On the other hand, July and the end of the year saw the lowest number of new company formations.

Prague was the birthplace of one-third of all new businesses. "The population of a city or region is the primary factor influencing the number of newly established businesses.

The South Moravian and central bohemian regions are still far behind Prague, which has a 28 percent share of the overall population. In contrast, the Karlovy Vary Region, which is at the very end and has the fewest people, is where only 2,000 new businesses were founded, according to Tomá Berger, the director of Imper.

Over 60% of the newly formed businesses were natural persons operating under the Trades Act (OSV), which is the legal form for such businesses. were in second place with a 24 percent share, with limited liability.

Associations and associations of unit owners each made up 2% of the total, closely followed by foreign natural persons (7%) and associations. Along with the establishment of 30 political parties or movements, 931 joint-stock companies, 237 foundation funds, and more were created.

Over half of newly established independent contractors fall into the so-called independent trades category, which also includes the majority of newly established businesses. Companies that specialize in construction site preparation (seven percent) came in second place as a result of the recent construction boom.

Real estate and rental management (five percent) occupy the third spot in the list of fields and are once more influenced by the demand for real estate and housing. The number of failed businesses set a record last year, coming in at almost 100,000, almost matching the number of new businesses that were founded.

Nearly one-third of all businesses ceased operations in November and December, when most businesses ceased operations. Limited liability companies were the second most common type of employer after self-employed people.

According to Berger, "We can see the clear impact of inflation and the sharp increase in energy prices, which was forcing many companies into liquidation.". From a business perspective, the wholesale trade and its intermediary industries saw the greatest number of business closures (8%), followed by the retail industry (7%).

Businesses involved in the rental and management of real estate, restaurant catering, and the building of both residential and non-residential structures all struggled. Prague-based businesses stopped operating in 20,488 last year.

Ostrava (2,739) and Brno (4,439 companies) were distantly followed. On the other hand, Olomouc, where 795 companies finally settled, claimed the fewest "renegades.".

Thus, Prague was the location of nearly one-fifth of all failed businesses. 70,784 entrepreneurial natural persons stopped operating in 2022, accounting for 72 percent of all defunct businesses.

Ltd. The second-place finisher was (13%).

Along with the closure of 36 foundation funds, there were also 4,535 associations, 762 joint-stock companies, and 371 cooperatives. "The age of the defunct companies is also interesting because, in the past year, those founded in the immediate aftermath of the revolution, in 1991, were the ones that closed the most frequently.

According to Berger, they account for 11% of all failed businesses. Last year, which is also the average of the previous three years, saw the establishment of nearly 2,600 companies in the Czech Republic with a foreign manager or owner.

Nearly 4,000 were established in 2018, making it the most common year. In our nation, Slovaks (888) and Ukrainians (467) were the primary founders of the majority of these businesses.

The following are listed in order: Poles (253), Germans (183), Hungarians (82), Italians (79), and Austrians (73). The number of businesses with foreign owners or Russian businesspeople made up the largest portion of the decline.

12 companies controlled by citizens of the Russian Federation were established last year, at least since 1994, as a result of the conflict in the Ukraine and the imposition of sanctions against Russia. Economy enterprises 2022 Ukrainians (467) and Slovaks (888) both found a significant number of these businesses in our nation.

The following are listed in order: Poles (253), Germans (183), Hungarians (82), Italians (79), and Austrians (73). The number of businesses with foreign owners or Russian businesspeople made up the largest portion of the decline.

12 companies controlled by citizens of the Russian Federation were established last year, at least since 1994, as a result of the conflict in the Ukraine and the imposition of sanctions against Russia. Economy enterprises 2022 Ukrainians (467) and Slovaks (888) both found a significant number of these businesses in our nation.

The following are listed in order: Poles (253), Germans (183), Hungarians (82), Italians (79), and Austrians (73). The number of businesses with foreign owners or Russian businesspeople made up the largest portion of the decline.

12 companies controlled by citizens of the Russian Federation were established last year, at least since 1994, as a result of the conflict in the Ukraine and the imposition of sanctions against Russia. enterprises in the economy 2022.

"The age of the defunct companies is also interesting because, in the past year, those founded in the immediate aftermath of the revolution, in 1991, were the ones that closed the most frequently.