In the first half of 2025, a total of 16,944 new companies were established in the Czech Republic, marking a 9% increase compared to the same period last year and representing the highest number of new firms since 2017. According to analysis by CRIF – Czech Credit Bureau, this growth occurred despite a parallel rise in company closures. From January through June, 8,961 companies ceased operations, up 15% year-on-year, resulting in a net market gain of 7,983 companies. Analyst Věra Kameníčková from CRIF noted that although closures are rising faster than new formations, the overall net growth for the first half of the year was 4% higher than in the same period last year. Over the past 12 months (July 2024 to June 2025), 32,360 new companies were formed—a 10% increase—while 18,237 companies shut down, 14% more than the previous year. This yielded a net gain of 14,123 firms, a 6% increase compared to the prior year-long period. Geographically, almost half of all newly established companies in the first half of the year were based in Prague (8,806), followed by the South Moravian Region (2,091), and the Moravian-Silesian Region (1,118). The Olomouc Region experienced the highest percentage growth in new company formations at 21%, with the Pilsen and Karlovy Vary regions also seeing double-digit increases. However, the Zlín Region recorded a 14% drop in new companies compared to the first half of 2024. Company closures followed a similar regional pattern, with Prague registering the most closures (4,312), followed by the South Moravian Region (969) and the Ústí Region (555). The Liberec Region saw the sharpest increase, with closures nearly tripling year-on-year. Other regions, including Pardubice and Vysočina, also experienced substantial increases in company dissolutions. In contrast, Prague, Central Bohemia, and Moravian-Silesia saw relatively stable figures. Net growth remained concentrated in Prague, which accounted for 56% of all net new companies (4,494). The South Moravian Region added 1,122 companies. However, the Liberec Region saw a net loss of 259 companies, and Ústí nad Labem recorded a loss of 62. Sectorally, the most new companies were created in trade (2,079), construction (1,806), and manufacturing (1,756). The transport and storage sector saw the fastest growth, up 19%, while services like repairs, cosmetics, and textile cleaning also recorded notable increases. However, the financial and insurance industries saw a 19% decline in new firms, and real estate management dropped by 17%. The business and real estate sectors also saw the most company closures, with 2,730 and 1,607 closures respectively. Professional, scientific, and technical activities followed with 1,215. Sectors with the sharpest increase in closures included electricity, gas, and heating utilities (up 57%), miscellaneous services (up 46%), and cultural and recreational activities (up 45%). Over the past year, the fastest-growing sector was “other activities,” which includes personal services, with 62 new companies for every 10 closures. Health and social care and education sectors also posted strong ratios of growth compared to closures. The age structure of defunct companies showed a shift toward older firms. The share of companies operating for 31 to 35 years among those that closed rose from 10% to 14% year-on-year. Meanwhile, companies established after 2015 now represent a smaller share of closures, indicating a maturing business environment in the Czech Republic. Source: CRIF