Number of new companies grew by 44% in first 9 months, but more insolvencies recorded

Romanian business environment remains uncertain, as a result of the economic impact of the 4th wave of Covid 19 pandemic, the expiring of fiscal stimulation measures, expensive credits, increase of inflation pressures and tensions in the political field, according to the latest edition of KeysFin Macro Update.   The balance sheet of the first 9 months of 2021 shows that the number of new companies grew by 44%, but many insolvencies, suspensions and dissolutions were also registered, compared to the same period of 2020, Keysfin analysts show. According to the source, “the number of companies registered in the first 9 months of this year grew by 44% against the same period of 2020, to 116,700, according to data from the Trade Registrar.”   Thus, most new companies were registered in Trade sectors (23,300, 21% of total), Agriculture (13,969 companies, 13% of total) and Constructions (13,045 companies, 12% of total). At the opposite pole there were companies in the Energy & Gas , Water distribution & Sanitation and Extraction Industry, with percentages between 0.1 and 0.3% of total.   From the geographical point of view, Dambovita, Bistrita Nasaud, and Bihor counties recorded the highest increases of company registrations, included between 70% and 150%, while in Satu Mare, Braila and Salaj counties there were the smallest increases between 10% and 24% in the first 9 months of 2021, against the same period of 2020. The number of active entities grew by 7% against the same period of 2020, reaching the highest level in history of 1,507,462 at the end of September 2021.   The number of companies that entered insolvencies in the first 9 months of the year grew by 7% compared to the same period of 2020 and reached 4,307 insolvencies, according to data from the Trade Registrar.   Most insolvencies in 2021 were recorded in Trade (1,286 companies and a share of 30% of total), Constructions (727, 17% of total) and Processing Industry (543 companies, 12.6% of total).   At the opposite pole were the Extractive Industry, Energy& Gas and Health, with 0.3% of total. From the geographic point of view, in Valcea, Maramures and Satu Mare counties there were the biggest insolvency increases, between 80% and 117%, while in Vrancea, Bacau and Constanta counties there were the biggest drops, between 36% and 43% in the first 9 months of 2021, against the same period of 2020. The number of dissolved companies in the first 9 months of the year grew by 25% compared to the same period of 2020, to 69,000, according to Trade Registrar data. Most companies closed down were in the sectors of Trade (19,996), Professional Activities (6,472) and Constructions (6.440).   From the geographic point of view, in the counties Ialomita, Alba and Vrancea there were the biggest increases of company dissolutions, included between 47% and 62%, while in Cluj, Braila and Bacau there were the smallest increases, between 8% and 13% in the first 9 months of 2021, compared to the same period of 2020. Moreover, the number of suspended companies grew by 13% against the first 9 months of 2020, t0 9,098 companies.   KeysFin is offering solutions of reducing commercial risk by using data about companies in Romania and abroad by means of dedicated instruments. With a portfolio of over 500 customers,   KeysFin is one of the most important business information solutions in Romania.   KeysFin also owns the KeysFinder application, with which users can easily and rapidly access financial situations, indicators and juridical data from over 4 million economic entities in Romania.