Company formation boom continues in Switzerland
After the year 2020, which was marked by the COVID 19 pandemic, already went down in history as a record year in terms of the number of new companies founded, the company formation boom will continue in 2021. Switzerland is thus heading for a new record this year. In the first half of 2021, 26,387 new companies were entered in the commercial register. This corresponds to an increase of +20.9% compared to the same period last year.
According to a new evaluation by the Institute for Young Enterprises IFJ, the company formation boom is continuing despite the Corona pandemic, which has not yet been overcome. The Swiss start-up scene is in high spirits and looks to the future with a great deal of confidence, according to the IFJ's assessment.
Where is the company formation boom greatest?
Most of the new companies were founded in the cantons of Zurich (4,638), Vaud (2,473), Bern (2,471) and Geneva with 2,173 new registrations. These four cantons account for almost half of all new foundations throughout Switzerland. Compared to the previous year, the canton of Schaffhausen is one of the biggest percentage gainers; it recorded an increase of a remarkable +63.7% compared to the previous half-year, followed by Zug with +40.3%, Uri with +32.7% and Bern with an increase of +31.6%. Except for Appenzell Innerrhoden (-19.4%) and Obwalden (-9.2%), all cantons recorded positive growth.
Comparison of the last 10 half-years
Since the slight declines in 2012 and 2015, the Commercial Register Office has recorded a steady increase in new registrations until 2020. In the first half of 2020, new registrations temporarily collapsed due to the Covid 19 measures. On average, 22,010 new companies were registered per half-year over the last 10 years. The current six months of 2021 recorded a remarkable 20% increase over the 10-year average, with 26,387 new registrations.
Legal forms in comparison
In Switzerland, 10,024 new limited liability companies (GmbH) were founded in the first half of the current year, representing growth of +18.5%. This is followed by the sole proprietorship with 8,743 new registrations (+21%), the stock corporation (AG) with 5,212 new registrations (+25%) and the general partnership with 800 (+21.8%) registrations.
Start-ups by industry
In terms of company start-ups by sector, all but two sectors are showing positive trends compared with the previous year. The top three growth sectors include Other Services (including video production, photography, facility management, horticulture) with +69%, Agriculture & Forestry (+59.7%), and Retail Trade with +42.8%. The industries with the largest percentage declines were Transportation & Logistics (-3.5%) and High Tech (-1.6%).
Source: Institute for Young Enterprises IFJ
