Contributing to the increase in entrepreneurship is the ease of starting a business and tax exemptions for start-ups. The minimum paid-up capital is only S$1, and it takes less than a day to register a Singapore company.
Gloomy as the economic outlook might seem, the Republic will continue attracting foreign companies and entrepreneurs with its business-friendly policies and hub location in the region, according to GuideMeSingapore.com’s annual list of business trends for Singapore,.
The Singapore business incorporation portal has predicted, among other trends, that there will be an increase in the number of new companies set up in 2013, with it exceeding the Singapore business registration numbers in the previous year.
It suggests that as Asian companies are currently growing at a much faster rate than developed countries, and with the establishment on many European and North American operations in Asia, Singapore will see disproportionate benefits from this.
“Take the example of Goldman Sachs, which recently announced plans to hire 1,000 individuals in Singapore. Wall Street firms are recognizing that it simply makes more sense to move operations here — the taxes in Singapore are lower, and they will be more in-tune with their target markets in Asia,” said Jacqueline Low, Chief Operating Officer of Janus Corporate Solutions, a Singapore company registration services firm, and the parent company of GuideMeSingapore.com.
“Asian companies are setting up operations in Singapore because it helps them gain marketing and investment traction. BDO Unibank, the largest bank in the Philippines, recently opened a Singapore representative office,” added Jacqueline.
GuideMeSingapore.com also claims that there will be an increase in local entrepreneurship in Singapore in the year ahead. With the rising number of venture funds, angel investors and initiatives set up by government agencies to foster higher entrepreneurship among the young, who are said to be risk-takers.
“Schools such as NUS have initiatives providing mentoring and network opportunities for students. This will create a positive cycle — more young Singaporeans will start businesses, their success in turn will inspire others in their network to strike it on their own. This trend will also help maintain the city’s consistently low unemployment rate,” she predicted.
A hot topic to many, foreign immigrants will cause a surge in population, predicts GuideMeSingapore.com. With plans to increase the aging population from 5.1 million to nearly seven by 2030, mainly through immigration, the government will have to try and find the right balance.
“On one side, a too restrictive immigration policy will stifle the country’s economic growth, while on the other side, a very liberal policy will further add to the unhappiness of Singaporeans,” added Jacqueline.
Image Credit: Holiday in SG