New commercial company registrations dropped by 2.7 percent in October compared with the same month in 2021, totaling 7,149 businesses, according to data released on Thursday by the National Institute of Statistics (INE).
With October’s decline, start-up activity returned to negative territory after September, which had shown a year-on-year increase of 3.3 percent.
In October, about €192.2 million was committed to the creation of 7,149 companies, representing a 5.8 percent decrease from October 2021. The average committed capital stood at €26,883, down 3.2 percent from the previous year.
Meanwhile, the number of established companies fell, and company liquidations rose by 8.8 percent year over year to 1,919. This implies that 62 firms ceased operations in Spain each day during October.
In the first ten months of the year, 3 percent fewer companies were created, while 9.1 percent more companies disappeared than in the same period of 2021.
Of the 1,919 companies that closed in October, 76.1 percent did so voluntarily, 11.6 percent as a result of mergers, and the remaining 12.3 percent for other reasons.
During October, 19 percent of new commercial companies operated in trade and 16.9 percent in real estate, finance and insurance activities. The highest liquidation rates by sector were in real estate, finance and insurance (19.5 percent) and in trade (17.3 percent).
On the other hand, the number of commercially active companies that made a capital increase in October reached 2,045, up 5 percent. Committed capital in these increases exceeded €1,400 million, up 3.5 percent from October 2021, while the average capital was €685,013, down 1.4 percent.
Madrid and Catalonia lead company formations
The regions with the most new businesses in October were Madrid (1,655), Catalonia (1,415) and Andalusia (1,244). The areas with the fewest new companies were La Rioja (27), Cantabria (50) and Navarra (52).
Thirteen regions registered fewer registrations in October than in the same month of 2021. The largest declines occurred in Extremadura (-24.1%), Navarra (-20%), Murcia (-18%) and Castilla-La Mancha (-16.9%). Regional increases were led by the Basque Country (23.4%), Catalonia (+5%), Andalusia (+3.5%) and the Valencian Community (+1.7%).
Considering the dissolved businesses, Madrid had the most liquidations in October (745), followed by Andalusia (237) and the Valencian Community (157). The autonomous communities with the fewest closures were Navarra (9), La Rioja (14) and Cantabria (20).
Eleven regions reported higher liquidation figures in October, notably Cantabria (+81.8%), Murcia (+80%) and Aragón (+72.2%). Galicia (-8%), Asturias (-7.7%) and Castilla-La Mancha and Catalonia showed little or no change.
Monthly rise in company establishments
From October to September, the establishment of new companies rose by 4.5 percent, marking the mildest growth in at least five years. In October, liquidations grew by 34.2 percent compared with September, recording the smallest month-to-month increase since 2020 when liquidations fell 2.2 percent.