There are over sixty thousand now business registrations in Singapore every year. Altogether the Accounting and Corporate Regulatory Authority (ACRA) oversees more than 431.000 companies at this point in time. Out of all the new company incorporations, around 50% are private limited companies. In terms of paid up capital, only half of all new formations have a sum higher than 10.000 SGD upon incorporation. At this point we would like to remind foreign entrepreneurs wishing to incorporate their company in Singapore and subsequently applying for the employment pass to choose paid up capital structures which are above 25.000, ideally 50.000 or more to maximize their chances of getting the employment pass in Singapore.
The other 50% of new company incorporations are made up of Sole Proprietorships, LLPs, PAFs (Public Accounting Firms), LPs and Partnerships. Against the 60,000 businesses registered in Singapore each year, there are 40,000 companies which close shop, leaving a net growth in the total pool of 20,000 new companies per year. Entrepreneurs are reminded at this point to follow the correct procedures of striking off a company with ACRA.
Interestingly the largest group of new business formations is in the IT industry. Followed by corporate training companies and accounting firms.
A net result of 20,000 additional companies each year is an impressive result for a nation as small as Singapore and testimony to the country’s thriving spirit of entrepreneurship. Especially in the infotech sector the Singapore government has deployed extensive resources in the last 10 years to create a large and thriving ecosystem. The poll results clearly show that this initiative has been successful.