Confidence in starting new businesses in Singapore continued to remain strong as more businesses were formed in 2012 than 2011, according to the Singapore Business Formation Statistics Report 2012 by Janus Corporate Solutions.
New business formations totalled 56,681 in 2012, registering a small increase from the 55,699 business formations in 2011. The number of locally owned enterprises increased by 2.5% while the number of foreign owned enterprises rose by 2.7%.
According to the report, the number of private limited company registrations saw an increase of 6% during 2012 and they made up 55% of all businesses registered in 2012. A private limited company offers protection to business owners as it has its own legal identity separate from its shareholders and directors. A separate legal identity means the liabilities of owners are limited to assets in the company and their personal assets will remain untouched should the business fail.
In terms of business formations by industry, the report identified significant increase in business incorporations in Head Offices and Management Consultancy (28%), Computer Programming and Consultancy Services (22%), Retail Trade (15%), Food and Beverage Services (12%), and Wholesale Trade (10%).
The report also noted a healthy increase in the number of foreign company registrations from certain countries, including a 264% rise in the number of Chinese companies and a 51% rise in the number of Japanese companies.
A foreign company can incorporate either a branch office or a subsidiary company in Singapore.
There was also an increase in the number of companies with individual shareholders from France Australia, and Japan by 65%, 29%, and 27% respectively.
"Singapore attracts foreign businesses because it is well positioned within the global economy," says Jacqueline Low, Chief Operating Officer of Singapore company registration agency Janus Corporate Solutions, the parent company of GuideMeSingapore.com.
Low adds that the country offers low taxation and superb ease of doing business, which are a big draw for businesses from both developing and established countries.
"Its free trade access provides opportunities for companies from China and other countries to penetrate more markets as economic growth in their home economies slow down," notes Low.