No spike in April 2020 numbers for business cessations

WE refer to the article "Over 8,500 business entities close shop in April; highest in recent years" (The Business Times, May 11, 2020), which reported that the number of business entities that closed in April 2020 as being more than double the number of cessations in March 2020, citing data from BizInsights.

The number of business entities that have ceased - that is, de-registered from the business register - in April 2020 was 3,771, not 8,663 as reported. This is comparable to the business cessation number of 3,793 for March 2020 and 4,124 for April 2019.

Business entities go through a process to have their business de-registered. Depending on the complexity of the case, the de-registration process may take a few weeks to a few years. During the process, a business entity can also withdraw its application for de-registration. In the case of a company, the process also includes a 60-day period of public notice of the impending de-registration.