Registering and deregistering a business – How things went in the first half of 2020

Amazing figures from the Federal Statistical Office show how the corona pandemic has influenced the issue of “registering a business”. Time to explain the conflicting numbers in more detail.

Register your business and start your own business in the first half of 2020

The number of business registrations is in the first half of 2020 significantly decreased. As is clear from the recently published statistics from the Federal Statistical Office, both the number of business registrations and the number of registrations as small entrepreneurs have fallen significantly. Overall, the number of business registrations fell by 9.4 percent in the first half of the year compared to the previous year.

Both small business the decline in registrations is even a whopping 21.1 percent below the previous year’s level. But why is this? On the one hand, of course, due to the economic uncertainty in the corona pandemic and the current weakness of the German economy. But that alone cannot explain the decline. Indirectly, many registrations were also triggered by the closure of trade offices and the resulting processing backlog. Those who wanted to become self-employed often had to put up with very long waiting times.

It is interesting to note that the number of business start-ups as part-time businesses has increased. Compared to 2019, the number rose by around 1.2 percent in the first half of the year. Again, it shows again that many people in difficult economic times second leg want to build. Anyone who works in an industry with high unemployment or is threatened by it themselves can use a side trade often prevent the personal economic downturn. Only time can tell whether this will continue throughout 2020.

Why the numbers on self-employment are difficult to interpret

If you look at the figures for the current start-ups in the first half of the year, you will surprisingly high number at least look in amazement at start-ups. However, upon closer inspection, it becomes clear that some of this statistic can be at least misleading. Because business start-ups also include company takeovers and a change in the company or the company headquarters. Anyone who has moved their business to the home office due to the contact bans or has carried out a company takeover can still be listed as a start-up in the statistics. That would mean, however, that the numbers are not nearly as high as they appear at first glance. So the question arises as to how things are going with insolvencies and company closures.

Why the number of bankruptcies is not skyrocketing

The number of business deregistrations is also an important topic in the statistics. Because these fell by 16.1 percent compared to the first half of 2019. There have been total only 259,100 business deregistrations recorded. But how can that be when the corona pandemic has caused so much damage in many sectors. Here, too, the reasoning is obvious. Because since March the so-called Obligation to file for insolvency suspended. This means that companies in difficulty do not have to file for bankruptcy even if bankruptcy is already in sight. The managing director is therefore no longer criminally prosecutable for delaying insolvency. Although this measure currently only runs until September 2020, it is expected that this law will also be extended for further months. It is therefore currently not possible to foresee the extent to which business deregistrations will take place as a result of the corona pandemic.

Register your business now? Why not?

Even if the crisis is not over and we are facing a tough autumn and winter, starting a business can still be a good choice. Such a foundation can be a good opportunity to build a new mainstay, especially for people from industries that will remain idle for a longer period of time due to the situation. No matter how much room for interpretation the data from the Federal Statistical Office offers, it seems that many people, even in times of crisis, were looking for a way into self-employment and dared to take the step into a self-determined future.

It should also be noted that there are numerous subsidies that promote a start-up. So e.g. B. ALG-1 recipients can apply for the start-up subsidy, ALG-2 recipients for the entry fee – provided that a viability certificate has been issued for the business plan and the business idea. If one assumes the current forecasts that the economy will gain momentum again from spring 2021, successful entrepreneurs can start a business or e.g. B. a company succession lay the foundation for later success. By the way, anyone who needs support before founding a company can use subsidized business start-up advice for their company.

Further information: Statistics from the Federal Statistical Office (external link)