Telecoms, health and social sectors see new firms hike

THERE was a surge in the number of firms established in the telecommunications, health and social sectors in the first three months of the year.

Every other sector saw a drop in the number of new companies established in the period meaning overall company formations were down 22.5% in the first quarter of the year, compared with the same period last year.

The housing sector saw the biggest drop, falling 63% according to figures released by ICC Formations. Construction firms formed were down 35%.

Head of professional services at ICC Formations, Jon Rock, said budding entrepreneurs should avail of new exemptions from corporation tax by setting up their own business.

“With the amendments to the Finance Bill now fully in operation, new companies have the ability to earn profits of €960,000 tax free in their first three years. With unemployment rising people may now find themselves with both the time and motivation to avail of these new incentives and take the plunge by becoming their own boss,” he said.

There was an increase of 13% in the number of companies formed in the health and social work sector with 141 new startups formed last quarter.

There was also a 50% rise in the number of telecommunication companies formed while electricity gas, water, accounting and legal were static.

There were 117 insolvencies in April against 56 in April last year and 29 in 2007. In the first four months 150 construction firms became insolvent, 72 in the hospitality sector, 69 in retail and 65 in services, according to the figures.