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- Losing a legal entity: "business mortality" has exceeded the "birth rate" for the first time in three years
Losing a legal entity: "business mortality" has exceeded the "birth rate" for the first time in three years
In the first half of 2025, the "business mortality rate" was almost 1.5 times higher than its "birth rate" - for the first time since the sanctions of 2022, when companies left the market en masse, Izvestia calculated based on Rosstat data. Most often, enterprises in the trade, construction and manufacturing industries were closed. Car dealers are also shutting down amid declining demand and microfinance institutions. In addition, some foreign companies that decided to leave back in 2022 have completed the liquidation of legal entities only now, for example, H&M. The main reasons for the gap are the growing tax burden, the high key rate and the activation of the Federal Tax Service in the fight against one—day firms and fragmentation schemes. How this affects the economy and what will happen next is in the Izvestia article.
Which companies closed in 2025
In the first half of 2025, about 95 thousand organizations opened in Russia, and almost 1.5 times more closed - 141 thousand. In previous years, on the contrary, companies were registered more often than they were liquidated, Izvestia calculated based on Rosstat data. The last time a business stopped working faster than it was created was in 2022. The editorial board sent requests to the Ministry of Energy and the Federal Tax Service.
According to statistics, legal entities in trade, construction and manufacturing industries were most often closed. These industries are traditionally the most sensitive to rising costs and declining demand, explained Vladimir Chernov, analyst at Freedom Finance Global. For example, as Izvestia previously wrote, a wave of bankruptcies among developers began in the regions: in Yekaterinburg, the former general contractor of the PIK Stroyproekt Group turned out to be on the verge of bankruptcy, and in Rostov-on-Don, the Donstroy IC was declared bankrupt, having failed to repay the debt to the bank.
Some Russian fashion brands, such as ME and I AM Studio, have also announced their completion. In addition, some foreign companies that announced their withdrawal from the Russian market back in 2022 are only now starting to liquidate legal entities or file for bankruptcy — for example, H&M and Microsoft.
The number of car dealers who suffer from unstable supplies, limited assortment, low demand and high import costs is decreasing, Vladimir Chernov added. According to experts, every fifth car dealership may close by the end of the year. Thus, the largest Klyuchavto dealer has almost tripled the number of legal entities in its structure, the media reported.
There is an increase in the microfinance sector: small players are leaving the market under the pressure of competition and regulation, Vladimir Chernov noted. In June alone, 11 MFIs closed, including RD Online LLC and Evraz.
— At the same time, against the background of economic adaptation, there is a noticeable increase in registrations in the field of mining, IT, consulting and logistics. There is also a growing business focused on domestic tourism and e—commerce," the analyst said.
In 2025, the fewest new companies appeared in telecommunications, transport, construction, chemical and agricultural industries, as well as in the service sector, added Ekaterina Avdeeva, head of the Delovaya Rossiya Expert Center for Criminal Law Policy and enforcement of judicial acts. The reasons are high competition and difficult entry into the market, rising tariffs, the need for large investments, low profitability and increasing regulation.
How to keep a business in Russia
The increase in "business mortality" this year is due to a number of factors, said Vladimir Chernov. First of all, the high cost of loans is due to the high key interest rate (in June it was 21%), which limits the working capital of the business. Fiscal control has also been strengthened: labeling requirements have expanded, fines (for example, for leaking personal data or transporting goods) and income tax have increased from 20% to 25%. In addition, the Federal Tax Service has stepped up the cleanup of "sleeping" and inactive legal entities, which has further increased the number of closures.
However, clearing the market of fictitious companies and splits is a positive process, as it helps to increase business transparency, strengthen tax discipline and equalize competitive conditions, says Ekaterina Avdeeva from Delovaya Rossiya. However, at the same time, many enterprises face delays in payments from counterparties and cannot service old loans.
— Usually, mass liquidation of companies leads to a decrease in business activity, a drop in tax revenues, an increase in unemployment in certain industries and a deterioration in the investment climate. In addition, competition suffers: the remaining players in the market get the opportunity to dominate, which reduces the incentives to improve quality and introduce innovations," believes Vladimir Chernov.
Currently, the average life span of legal entities in Russia is about six to seven years, said Vladimir Chernov. To extend it, it is necessary to reduce the regulatory burden and interest rates. It is also important to improve the acceleration and support programs for entrepreneurs in the regions — this will help not only increase the number of new companies, but also increase their sustainability, the analyst believes. In addition, the development of the crowdfunding and crowdlanding market is required so that businesses have wider access to alternative financing, says Daniil Gonenko, associate professor of Economics and Finance at the Presidential Academy.
In Russia, a federal project to support small businesses is in operation until 2030, under which small players can receive preferential loans (the key rate is minus 3.5%), guarantees and guarantees, loans from MFIs, preferential leasing, grants, assistance in issuing bonds, exporting and participating in public procurement.
In the second half of the year, the situation with company closures may stabilize slightly: the key interest rate has begun to decrease (to 18%), which means that loans will become more affordable, predicts Yulia Kovalenko, deputy head of the Higher School of Finance at Plekhanov Russian University of Economics. According to her, this will allow businesses to use loans more actively to maintain their operations.
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