More than 1.5 million businesses closed at the end of 2020

Photo of author

By admin

In 2020, 1.54 million legal entities, individual entrepreneurs (IE) and farms stopped their activities in Russia – that is, a fifth of existing businesses. This became a record since 2014, follows from the statistics of the Federal Tax Service, which was studied by Izvestia.

At the same time, the number of liquidated legal entities showed a positive trend: compared to 2019, it decreased by 17% to 548 thousand and, in general, became the most modest over the past three years (from 2017 to 2019, the annual number of liquidated legal entities ranged from 632 to 660 thousand).

However, the number of closed individual entrepreneurs and farms showed negative dynamics. Compared to 2019, it grew by 36% and amounted to 991 thousand.

The most frequent reason for liquidation was the decision to terminate activities (it was accepted by 670 thousand individual entrepreneurs), but it was not the only one. In 19 thousand cases, the individual entrepreneur was abolished due to the death of a businessman, 9 thousand ceased to exist due to the cancellation of the document confirming the entrepreneur’s right to reside in Russia, and 1.3 thousand individual entrepreneurs went bankrupt, follows from the statistics of the Federal Tax Service.

Among the less popular reasons for liquidation was a court decision and deprivation of the right to do business.

Read more in the exclusive material of Izvestia:

Abolished question: every fifth business closed in 2020

Leave a Comment