Entrepreneurs and investors are evidently upbeat about the outlook for the global economy and this has accelerated the rate of company registrations in Singapore.
Singapore (PRWEB) April 17, 2012
According to the latest quarterly Singapore Company Incorporation Statistics Report released by http://www.GuideMeSingapore.com, there has been a surge in business formation activity during the first quarter of 2012. This trend is reflects a positive business sentiment and portends continued growth for the local economy, reports GuideMeSingapore.com.
According to the report, business 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.
Ms. Jacqueline Low, the Director of Singapore company formations agency, Janus Corporate Solutions - the parent of GuideMeSingapore.com site - says that the findings of the report demonstrate a strong correlation between business incorporation activity and the global business climate. The report points out that it was in Q1 2012 that the European debt crisis showed signs of cooling down. The US economy also showed signs of recovery during this period and Japan was also on its path to recovery post the 2011 earthquake. In addition, Singapore’s exports surged earlier this year effectively eliminating the chances of it slipping into a technical recession. According to Singapore’s Ministry of Trade and Industry, Singapore’s GDP surged an annualized 9.9% in Q1 2012 compared to the 2.4% contraction in Q4 2011.
“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 report points out that the government’s efforts in building an enterprise ecosystem has made it easier to embrace entrepreneurship in Singapore. “While a favorable global economic environment has spurred entrepreneurial activity, it is noteworthy that Singapore provides an optimal environment that is conducive for business setup and expansion. For instance, by offering special benefits to legal entity of type Exempt Private Company meant for entrepreneurs, the authorities have made it easy for first-time entrepreneurs to kick-start their business ventures in Singapore,” said Ms. Low. The report attributes limited liability features, attractive tax benefits, and simplified compliance requirements of EPCs as the main reasons behind its popularity. The report also reaffirms that a growing awareness of the various government assistance schemes for start-ups in Singapore is prompting more individuals to take the entrepreneurial plunge and set up their own start-up enterprise in the country.
The complete findings of the report can be viewed at http://www.guidemesingapore.com/docs/singapore-company-statistics-2012-Q1.pdf