Figures from CRIFVision-net show the number of company formations rose 17% year-on-year to a record high of 25,700 in 2021.

The total compared to 21,930 in 2020, and the number of new companies was an improvement of 13% on 2019 before the pandemic.

Legal, accounting and business was the biggest contributor of new company formations last year, followed by financial intermediation, wholesale and retail, and and construction.

All sectors improved except for community, social and personal activity, which experienced a 26% decline to 1,83o new companies for the year.

"2021 was a record-breaking year for new company formations, marking a significant turning point for the Irish economy’s Covid-19 recovery," CRIFVision-net managing director Christine Cullen said.

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“Achieving the highest number of new company registrations on record is a clear demonstration of the resilience, determination, and hard work of the Irish SME community. Moreover, it gives reason for optimism as we look to the year ahead."

Dublin accounted for 11,820 registrations, up 18% year-on-year, ahead of Cork (2,500), Galway (990) and Kildare (950). Mayo (330) was the only county to record an annual decrease (-2%) in company formations.

CRIFVision-net recorded 444 insolvencies in 2021, a decrease of 6% from the year prior. The number of dissolved companies also hit post-2008 highs with 12,410 firms dissolving without filing for insolvency.

"The increase in dissolved companies serves as a reminder of the challenging environment in which businesses are currently operating, and we must ensure that there are continued supports available to protect new companies and promote growth and development," Cullen added.