COVID-19 restrictions have resulted in the notable decrease in the number of newly registered companies in April – June 2020. However, the statistics is almost at the pre-crisis level by February 2021.

Following the results of February 2021, 22 thousand companies and 71 thousand sole entrepreneurs were established in Russia, which is slightly below then in the pre-pandemic February 2020 (Picture 1).

Picture 1. Dynamics of newly registered companies and sole entrepreneurs in Russia. Source: globas.ru

Wholesale and construction are the main activity types of newly established companies

From March 2020 to February 2021, 224,7 thousand new companies were established in Russia. 50,7 thousand of them are wholesalers, 21,1 thousand are engaged in construction of buildings and 19,7 – in specialized construction (Picture 2).

Picture 2. The number of companies registered from March 2020 to February 2021 by the activity types. Source: globas.ru

Retail trade, freight and passenger transportation are the most popular activities among newly registered sole entrepreneurs

From March 2020 to February 2021, 619,7 thousand sole entrepreneurs were established in Russia. 170,2 thousand, i.e. every third of them, are retailers, and 73,9 thousand sole entrepreneurs provide services in the field of land freight and passenger transportation. (Picture 3).

Picture 3. The number of sole entrepreneurs registered from March 2020 to February 2021 by the activity types. Source: globas.ru

The nominal GDP volume in 2020 amounted to 106,607 trillion RUB. The Central Bank of Russia forecasts a 3-4% increase in GDP in 2021 that will be the highest result since 2012. The recovery will promote the revival of economic activity in the country, as well as the increase in newly established companies and businesses.