Business, Latvia, Legislation, Markets and Companies

International Internet Magazine. Baltic States news & analytics Saturday, 08.08.2020, 11:12

Number of companies registered and liquidated in H1 decreased in Latvia

BC, Riga, 08.07.2020.Print version
The number of companies registered and liquidated in Latvia in the first half of 2020 was smaller than a year ago, representatives of Lursof business database provider informed LETA.

The number of new companies registered in Latvia in the first half of this year dropped 19.8 percent on year - from 5,450 in the first six months of 2019 to 4,369 companies in January-June 2020. 

Company liquidations reduced 2.0 times, from 17,955 a year ago to 6,109 in the first half of this year.

Analysis of company registrations by months reveals that in January, February and March the figure was consistent with the dynamic of previous years but a sudden slump followed in April, Lursoft said.

According to Lursoft data, 899 new companies were registered in April 2019 but in the same month this year the number of registrations fell to 436. Company registrations grew again in May and June, but their number was still smaller than a year ago. In May, company registrations fell 40.3 percent on year and in June registrations declined 12 percent on year. 

Also, operations of 2,176 companies were terminated and 182 companies' insolvency proceedings were started in the first six months of 2020. 

Of the companies liquidated in first half of 2020 more than a fourth were in the trade sector, while 10 percent were providers of professional, scientific and technical services, including legal and accounting services, advertising and market research services, etc.

"Meanwhile, the hospitality sector, which was one of the first to be affected by the Covid-19 crisis as the inflow of tourists came to a halt, is not among the industries with the highest company liquidation rates," Lursoft said.

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