NEWS Accounting        21/08/2020

Number of companies closing in Turkey increased 34.5% in July 2020

The Union of Chambers and Commodity Exchanges of Turkey (TOBB) has declared in a press release on August 21st the statistics relating to establishment and closure of companies in Turkey in July 2020.

 

The number of companies newly established in July 2020 was 10,202, which is an increase of 41.8% on the figure of 7,197 recorded in the same month of the previous year, and an increase of 6.3% on that of the previous month of June. Cooperatives increased 84.6% to 192, and sole proprietorships increased by 57.9% to 3,053 compared with the same month of the previous year.

 

In the first seven months of 2020, the number of newly established companies increased by 14.4% to 53,957 compared with the same period of the previous year.

 

With regards the year 2019, the number of companies newly established decreased 1.4% to 84,102, cooperatives increased 8.5% to 1,161, and sole proprietorships decreased 30.3% to 24,459, compared to the previous year. 

 

The number of companies closing in July 2020 was 1,505, which is 34.5% more than the figure of 1,119 recorded in the same month of the previous year, and 35.3% more than the figure for the previous month of June. Cooperatives closing fell 90.4% to 9, and sole proprietorships closing increased by 1.6% to 1,844 compared with the same month of the previous year.

 

In the first seven months of 2020, the number of companies closing increased by 9.3% to 7,251 compared with the same period of the previous year, and the number of sole proprietorships closing increased by 15.3% to 13,934.

 

With regards the year 2019, the number of companies closing increased by 5% to 13,197, cooperatives closing fell by 17.1% to 853, and sole proprietorships closing increased by 0.4% to 19,044, compared to the previous year.

 

The coronavirus pandemic had a significant negative effect on company openings and closings in recent months. As the lockdown was relaxed from the beginning of June, so the backlog in the opening and closing of businesses was cleared in the following months of June and July. Turkey is still in the throes of an economic recession, and it will be clearer over the coming months how this is reflected in the number of opening and closing companies. On the other hand, the number of daily coronavirus cases is again on the increase, and further shutdowns may be considered.



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