NEW COMPANY REGISTRATIONS UP BY 19.5%

MBABANE – In only five months, the Registry of Companies registered a total of 1 377 businesses.

These figures sourced from the registry department reflected an overall increase of 269 businesses when compared to the same period (January to May) in 2018 where 1 108 companies managed to successfully be uploaded into the system. Independent calculations by the Business Desk based on the above figures translated to a 19.5 per cent overall increase. 

During the current year, 1 250 private companies made it through which was lesser than the 1 016 registered in 2018.
Investopedia, an online research engine, explains that a private company is a firm held under private ownership.

initial

It was stated that private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO).
In terms of public companies, 24 got formal recognition by government which was almost half than the entities recorded during the previous year where there were only 13.

Investopedia defines a public company as an entity that issued securities through an IPO and trades its stock on at least one stock exchange or over-the-counter market. Although a small percentage of shares are initially floated to the public, daily trading in the market determines the value of the entire company.

composed

It is considered to be ‘public’ since shareholders, who become equity owners of the company, may be composed of anybody who purchases stock in the firm.
Under the category of non-profit making associations which deal with the promotion of either religion, education, sciences, charity, art, wildlife and flora or any other communal act, there were 100 registrations which was an increase from 78 during the prior year.

The registry statistics also pointed out that there were three foreign companies which showed an interest to do business in Eswatini while there was only one in 2018.
Registrar of Companies Msebe Malinga when asked to explain what he thought prompted the increase in registrations, attributed it to the recently introduced online registration platform.

courage

He mentioned that by virtue of the fact that entrepreneurs could now be registered electronically, this gave them the courage to formally register their businesses.

“Another observation that has been made by the office (registry of companies) is that the entrepreneurial culture among emaswati has been inculcated to the extent that even academics are venturing into business,” said Malinga.

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