New company formations up six per cent in Q4 2009

The latest statistics released by ICC Formations reveal that the economic downturn may be easing somewhat with the total number of new companies incorporated in Q4 2009 increasing by six per cent compared to the same period in 2008. Whilst overall, 2009 saw 1,454 less companies being formed than in 2008, the last four months of the year saw consistent increases on the number of companies formed compared to the corresponding period in 2008. 'Business activities' accounted for the majority of company formations in 2009 with 4,137 and 31 per cent. Not surprisingly, the number of new companies being formed in the construction industry has been decreasing consistently every quarter since the start of 2009. The finance industry has seen consistent increases every quarter. 2009 saw Dublin as the most popular county for company formations and is where 45 per cent of new companies formed are based. "The number of new companies being incorporated is an important measure of economic performance, both current and future, and so these figures can be seen as very encouraging," said the head of professional services at ICC Formations, Jon Rock. "This is a big swing from the start of 2009 which saw the number of new companies being formed down as much as 28 per cent in some months compared to 2008 figures. The first eight months of the year saw a year-on-year decrease in company formations, however, the signs of recovery spotted in September have continued with consistent increases in the last four months of the year, which is a very positive development," he said. He added that 2009 had been a difficult year for company formations however but the last quarter brought some exceptionally positive signs. With the Finance Bill introduced by the Government in 2009 extended through 2010, new companies can continue to avail of an exemption from corporation tax which means that a new business can earn profits of €960,000 tax free in their first three years, added Mr Rock.