1,744 companies dissolved in May

More companies closed their doors
More companies closed their doors in May

The National Institute of Statistics (INE) has released figures showing the number of companies dissolved in May increased by 20.6% on a year-on-year basis.

The number of mercantile companies created in May decreased0.9%  compared to the same month of 2011.

8,031 mercantile companies were created in May, 0.9% less than in the same month of 2011, and 17.4% more than in April 2012. The capital subscribed for their constitution exceeded 398 million euros, representing an increase of 32.0% as compared with May of the previous year. The average capital subscribed (49,594 euros) registered an interannual increase of 33.2%.

On the other hand, 2,977 mercantile companies increased their capital in May, 15.4% less than in the same month of 2011. The capital subscribed in the increases registered an interannual decrease of 65.4%, and exceeded 2,669 million euros. The average capital subscribed in these transactions (896,619 euros) decreased 59.1%.

The number of companies dissolved in May was 1,744, indicating an interannual increase of 20.6%. Of these, 66.0% did so voluntarily, 5.0% due to mergers and the remaining 29.0% for other reasons.

Results by main economic activity and type of society

22.8% of the mercantile companies created in the month of May corresponded to Trade and 20.0% to Construction and property development.

Out of the total mercantile companies created in the month of May, 99.4% were private limited companies and 0.6% were public limited companies. Out of the total companies that increased their capital, 91.9% were private limited companies and 8.1% were public limited companies.

80.3% of the capital registered by the mercantile companies created was subscribed by private limited companies, and 19.7% by public limited companies. Regarding the capital subscribed in capital increases, 74.6% corresponded to private limited companies, and 25.4% to public limited companies.

The interannual rate of the number of public limited companies created in May decreased 2.1% and the rate for private limited companies 0.9%.

Considering the companies that increased their capital, the number of public limited companies registered an interannual decrease of 24.8%, and the rate for private limited companies 14.3%.

The capital subscribed by the public limited companies created decreased 62.7% and 26.1% in private limited companies. As per the capital subscribed by the companies increasing their capital, the interannual rate for public limited companies registered a decrease of 86.5 %, and a decrease of 25.7% in private limited companies.

You can read the full report here: Mercantile Companies Statistics – May 2012