The latest quarterly Singapore Business Formation Statistics Report released by Janus Corporate Solutions shows a total of 15,457 new business formations in Singapore during the third quarter of 2013. The figure represents an 8.45% increase from the prior year. This reconfirms the overall trend of continued growth from the past year even though the figures show a slight decline from the previous exceptionally robust quarter.
The statistics published in the report show a largely stable breakdown with private limited companies continuing to take up majority of the business entity types at 8,809 formations, of which 84.48% were exempt private limited companies (EPC). The continued dominance of this entity type may be attributed to the tax incentives that are available to eligible EPCs.
For the first time, this quarterly report includes figures on the number of branch offices registered in Q3, which registered at a total of 55 formations.
The addition of this entity type to the analysis reflects the rising number of foreign companies looking to expand their businesses to the region.
With a strong reputation as the leading trade and investment hub in the region, Singapore continues to enjoy a high volume of new businesses engaged in wholesale trade and financial services. Similarly, the city-state's strategic location, stable government, transparent economy and efficient infrastructures have instilled confidence in foreign investors and in turn saw an encouraging number of MNCs favouring Singapore as a base to set up regional presence.
Further analysis by Janus Corporate Solutions reveal that 66% of new businesses had only Singapore-based shareholders, proving the effectiveness of the Singapore government's persistent efforts to promote local entrepreneurship through attractive schemes and grants.
"The steady growth in number of business formations despite the continued struggles of the global economy is a testament to Singapore's economic strength," said Jacqueline Low, Chief Operating Officer of Janus Corporate Solutions. She added that, "Looking at the recent statistics released by the Ministry of Trade and Industry, the high year-on-year growth of 5.1% in the third quarter is indicative of the country's positive economic outlook in spite of volatility in global markets."
Political stability, pro-business policies, low tax rates, and efficient infrastructures are some of the key attributes highlighted by Low that have set Singapore apart from and ahead of other business hubs.
"The concerted efforts by the Singapore government to increase productivity and innovation amongst small and medium enterprises (SMEs) have cultivated a vibrant entrepreneurial environment," observes Low.