The formation of new companies in the Cayman Islands has dropped off in the third quarter after a strong start to the year.
The total of 622 company registrations in September was the lowest monthly figure since December 2016, and the second lowest since July 2012.
On a quarterly basis, formation activity in the third quarter 2022, with 2,038 new companies, was lower than in any period since 2013, except for the second quarter 2020, which was the first full period during the COVID-19 pandemic.
Last year, the Cayman Islands General Registry saw a record number of 16,748 newly registered companies. This trend continued in the first period of this year (3,103) but started to decline significantly in the second quarter (2,359).
By the end of June, the number of active companies on the register had climbed to 119,922, from 116,996.
However, more than 2,000 companies are still pending to be struck off the register for inactivity.
For the year to date, company formations (7,500) have exceeded the number of terminations (5,273).
The declining trend is less pronounced for new partnership registrations. Similar to company formations, 2021 was also a record with 5,778 new partnerships.
On a quarterly basis, new partnership formations have been declining since peaking in the second quarter of 2021 (1,465) and are now at a level (1,094) last seen during the pandemic.
During the first nine months of 2022, new formations (3,690) still significantly exceed terminations (1,144).
The total number of active partnerships on the register last year was 37,075.
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