The number of new mercantile companies more than doubled in May, registering an interannual growth of 152.4%, reaching a total of 9,570 new companies, the highest figure in a month of May since 2007, according to data released this Thursday by the National Institute of Statistics (INE). The agency indicates that it should be taken into account that in May of last year the number of companies incorporated, that increased capital or that were dissolved “was exceptionally low” due to the declaration of the first state of alarm. In any case, with the year-on-year advance in May, business creation has seen positive rates for four consecutive months after having increased by 3.1% in February, 61.8% in March and almost 300% in April.
According to INE data, the number of mercantile companies dissolved last May was 1,720, 256.8% more than in the same month of 2020. In this way, each day of May they closed in Spain an average of 55 companies. In a monthly rate (May over April), company formation increased 3.8%, while business dissolutions fell 7.5%, their biggest decline this month in at least five years.
20.8% of the mercantile companies that were created in May are dedicated to commerce and 15.6% to real estate, finance and insurance. Regarding the companies dissolved by main economic activity, 20.4% belonged to commerce and 16.6% to construction. For the constitution of the 9,570 companies created in May, 333.2 million euros were subscribed, more than double that in the same month of 2020, while the average capital subscribed, which stood at 34,822 euros, fell 8.7% in interannual rate.
Of the 1,720 companies that closed last May, 78.8% did so voluntarily, 6.4% due to mergers with other companies and the remaining 14.8% for other reasons. For its part, the number of mercantile companies that increased their capital in the fifth month of the year increased by 98.4% in the interannual rate, to 2,518 companies. The capital subscribed in these increases exceeded 1,132.8 million euros, a figure that is almost double that of May 2020, while the average capital was 449,891 euros, 0.3% more in the interannual rate.
Madrid and Catalonia, leaders
The autonomous communities with the highest number of mercantile companies created in May were Madrid (2,231), Catalonia (1,890) and Andalusia (1,627), while those with the fewest companies were La Rioja (38), Cantabria (76) and Navarra (93 ). Regarding the dissolved mercantile companies, those with the highest number in May were Madrid (507), Andalusia (266) and the Valencian Community (149). On the contrary, the regions where fewer companies disappeared were Navarra (5), La Rioja (13) and Asturias (22).
In May, business creation increased in annual rate in all communities, mainly in Navarra (+ 365%), the Canary Islands (+ 324.7%), Aragon (+ 242.3%) and Catalonia (+ 208.8%) ). The lowest promotions occurred in La Rioja (+ 46.2%), Comunidad Valenciana (+ 105.1%) and Madrid (+ 123.8%). Regarding the dissolved companies, all regions also increased their number compared to May 2020. Cantabria was the community where the disappearance of companies increased the most in the annual rate, by 1,100%, followed by Castilla-La Mancha (+733.3 %) and Castilla y León (+ 681.8%). The smallest year-on-year increases occurred in the Basque Country (+ 147.7%) and the Balearic Islands (+ 156.8%).