Singapore's encouraging business policies continue to attract new incorporations and listings in 2013, according to the latest report by Janus Corporate Solutions.

Singapore saw an increase in new business formations in the fourth quarter of 2013, recording 14,500 new listings, from 13,351 on the same period in 2012, according to the latest quarterly Singapore Business Formation Statistics Report by Janus Corporate Solutions. 

The three industry sectors with the largest number of formations remain wholesale trade, 20 per cent, financial services, 13 per cent, and head office and management consultancy activities, 10 per cent. The fourth quarter also recorded a 5.11 per cent decrease in the number of private limited company formations, but an encouraging increase of 15 per cent in the registration of public companies compared to the third quarter. 

Of the 8,359 private limited companies incorporated in the period, 83.89 per cent were incorporated as exempt private limited companies, which have no more than 20 individual shareholders. Sixty-six percent were 100 per cent owned by local investors, 24 per cent were 100 per cent foreign-owned, while 10 per cent were owned both by locals and foreigners.

While such data must not be viewed in isolation, it can be useful for wealth managers in the long term as they seek to calculate a future pipeline of business from liquidity events as firms are brought to market in IPOs, or owners sell up to other businesses. 

The increasing interest in Singapore comes as the government continues to be proactive in encouraging entrepreneurship by implementing a range of schemes, assistances and pro-business policies, some of which also extend to foreign-owned business. Singapore has a thriving economy, strategic location and stable politics, driving overseas investors and entrepreneurs to flock to the city-state, said the report. Janus also noted that around a quarter of new businesses incorporated between 2012 and 2013 had only foreign-based shareholders, which is one of the attractive features of the Singapore business environment where the government allows full foreign ownership of firms.

Excluding local entities, the British Virgin Islands, Japan, the US and Australia top the table with the most corporate entities investing in Singapore, while China, India and Malaysia made up the largest proportion of foreign individuals investing in the country.