When it comes to company closings, 2020 was a year for the record books.

In 2020, 16,111 companies ceased to exist in the Czech Republic, 353 more than the year before and at the highest number in the country’s history.

On the other hand, 27,228 businesses were established, the lowest number in the past six years. A total of 11,117 companies have been added in the Czech Republic, which is the least since 2003. The data were published on Tuesday, January 26 by Czech Credit Bureau (CRIF).

The number of shut-down companies began to increase significantly during 2015 and the trend continued last year, although it was partly dampened by government interventions.

Last year, the number of newly established companies also decreased, 2842 fewer than in 2019. “This significant year-on-year decline was registered mainly in March, April, and October,” said CRIF analyst Věra Kameníčková.

The number of limited companies being set up in the country was on a steadily growing trajectory until 2017 when it peaked at 31,204. However, the growth registered a slight decline in 2018.

During 2020, most companies were established in Prague (12,844), in the South Moravian Region (3,339) and in the Central Bohemian Region (2,169).

Most companies closed in Prague (8383), Central Bohemia (1404), and the South Moravian Region (1354).

The highest number of companies were established in real estate management (4539), trade (3619), and manufacturing (2559). Most companies closed in trade (5648), real estate management (3233), and in professional, scientific activities (1729).