Janus Releases Singapore Business Formation Statistics Report For Q3 2013
15,457 new businesses were formed in the country in Q3 2013, registering an 8.45% growth from the preceding year.
Janus Corporate Solutions has released the Q3 2013 Singapore Business Formation Statistics Report. The report shows that 15,457 new businesses were formed in the country in Q3 2013, which was 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.
Private limited companies make up more than half of the total businesses set up in Q3 with 8,809 formations, and of which a dominating 84.48% were exempt private limited companies (EPCs). The large number may be attributed to the tax incentives that are available to eligible EPCs.
Furthermore, nearly three-quarters of the business formations were injected with a share capital of less than S$10,000, which reflects the continued success of the flexible and inclusive Singapore Companies Act that allows a minimum paid-up capital of only S$1.
For the first time, this quarterly report includes figures on the number of branch offices registered in Q3, which came up to 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 reveal that 66% 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 general slowdown of the global economy is a testament to Singapore’s economic buoyancy,” said Ms. 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 Ms. Low that have set Singapore apart from and ahead of other business hubs. In addition, she observed that, “The persistent efforts by the Singapore government to increase productivity and innovation amongst small and medium enterprises (SMEs) have cultivated a vibrant entrepreneurial environment.”
For more details, refer to the full copy of Q3 2013 Singapore Business Formation Statistics Report. Every quarter, Janus Corporate Solutions produces a report on the number and statistical profile of newly set-up business entities, the top industries registering business formation activity, and the top investing countries in Singapore.