SINGAPORE, October 27, 2014 /PRNewswire/ --
Hawksford Singapore's Q3 2014 Singapore Business Formation Statistics Report has been released.
Hawksford Singapore (formerly Janus Corporate Solutions) has been publishing the report since 2010 and it has evolved into one of the most eagerly awaited business statistics reports in Singapore.
Q3 of 2014 was an extremely active period for business formation. A total of 21,918 new businesses were formed, bringing the total number of businesses formed up until the third quarter of this year close to the total number of formations in 2013.
This quarter held a surprise twist; the share of Sole Proprietorships formed overtook the Limited Liability Entity. The share of Partnership firms has also grown sharply. These categories have been picking up momentum since the last quarter, on the back of parliamentary proposals to support owners of Sole Proprietary and Partnership businesses. Cash-payouts available under the government's PIC scheme may also have urged many small business owners to register their business operations.
As for Limited Liability Companies formed, Exempt Private Companies continued to hold the major share. The tax friendliness, relatively minimal regulatory requirements and the protection it provides to shareholders in the form of liability ceiling are the key reasons for its popularity.
Entrepreneurs continue to take advantage of the favourable share capital clause of the Singapore Company Act, which allows for businesses to be formed with share capital as low as S$1. As a result, in this quarter, more than 75% of businesses were formed with a share capital of S$10,000 or less.
While the share of companies with 100% local shareholding increased in Q3, the number of 100% foreign owned companies have not dwindled. Still they hold a share of 19% and in terms of absolute numbers and they are still resilient. Singapore allows 100% foreign shareholding and free repatriation of profits with no tax on dividends and capital gains.
As always, the Wholesale Trade sector boasted the maximum new business formations, followed by Head Office & Management Activities and the Financial Services Sector (excluding Insurance & Pension Funds). Retail Services, Computer and IT services registered a marginal spike in their shares, indicating strong local consumption and enterprise spending.
Singapore continued to attract enterprise and individual investors from diverse geographic origins. As for individual shareholders, the Singaporeans held the lion's share followed by their counterparts from China, India, Malaysia and Australia.
SOURCE Hawksford Singapore Pte Ltd