GuideMeSingapore.com has just released its latest Singapore Business Formation Statistics Report for the first quarter of 2012. According to the report, there has been a surge in business formation activity during the initial quarter of 2012.
Company incorporations in Q1 2012 increased to 14,596 entities representing a jump of 11% over Q4 2011. Furthermore, Exempt Private Company (EPC) formations recorded a 16% growth from Q4 2011 to Q1 2012 and emerged as the most preferred business structure among those starting new firms.
“Q1 2012 witnessed several positive economic developments, which served to bolster investor confidence in the local economy. Entrepreneurs and investors are evidently upbeat about the outlook for the global economy and this has accelerated the rate of company registrations in Singapore. A strong regional market and an anticipated increase in demand from key export markets has encouraged more entrepreneurs to set up trading companies in Singapore over the past three months”, said Ms. Low. An industry segmentation of companies formed in Q1 2012 shows that wholesale trade, financial services, and head offices and management consultancies were the top three industries to witness largest numbers of company formations.
The shareholding structure of companies incorporated in the period spanning January to March 2012 shows that 66% of the companies were completely locally owned while 24% of the companies had foreign shareholders. A marginal 10% of the companies were characterized by both local as well as foreign shareholding. Furthermore, there has been a 3% increase in the number of companies whose shareholders are all locals from Q4 2011 to Q1 2012 and a 2% decrease in companies that have completely foreign owners.
Maximum company incorporation activity for Q1 2012 was recorded in industries such as wholesale trade (21%), financial services (14%), activities of head offices and management consultancies (9%), retail trade (6%) and IT (5%). An interesting finding of the report is that architectural and engineering support activities and warehousing and transportation support activities were two new business sector entrants in Q1 2012 as compared to Q4 2011.
The report also reveals that the British Virgin Islands, China, India, Hong Kong, Japan, United Kingdom, United States, Cayman Islands, Australia, Malaysia, Germany, Indonesia, and Myanmar were among the top investing countries during Q1 2012.
The complete findings of the report can be viewed here.