A new report shines light on where the new money is being made in Singapore - key data for wealth managers prospecting in the city-state.

Singapore maintains its position as a key business hub in Asia after a report showed that new business formations rose 6 per cent in first quarter of 2013 from the fourth quarter of 2012.

In the latest "Singapore Business Formation Statistics Report" by GuideMeSingapore, new businesses amounted to 14,156 in Q1 2013, from 13,351 in Q4 2012.

Of the newly-registered entities, the largest continued to be private limited companies, which accounted for 59 per cent of all incorporations. Majority of these were exempt private limited companies, which enjoy reduced compliance requirements. This was followed by sole proprietorships, making up 32 per cent of incorporations, then by non-exempt private limited companies, which comprised 9 per cent.

Such data is useful for wealth management firms prospecting for new clients, highlighting potential sources of new wealth and the types of requirements that clients may need. 

Firms that were 100 per cent locally-owned still made up a huge chunk of the new registrations, or 66 per cent. Firms with 100 per cent foreign shareholding remained unchanged from the previous period at 24 per cent, while those with both local and foreign shareholding also remained at 10 per cent.

A popular sector where new businesses emerged was financial services, which made up 15 per cent of the listings for the quarter. The study said that the government's conservative financial services practices, which made the city-state relatively stable compared to other key cities, was the main driver for this percentage. Activities of head offices and management consultancy services were also strong, comprising 10 per cent of the quarter's total. Companies engaged in wholesale trade took the lead with 20 per cent.

Crises in the West have led many companies to turn to Asia for growth and to welcome these moves, the government of Singapore has fast-tracked its development and incentive schemes in a bid to accommodate all. One of the initiatives to be introduced is the Wage Credit Scheme, in which the government will help pay firms 40 per cent of the total increases in salary they give employees over the next three years. Another attractive selling point for the city-state is the Budget 2013 announcement that Singapore firms and inviduals will soon be getting tax rebates.

"There are still many new growth opportunities for companies in Singapore," the study said. GuideMeSingapore is owned by Janus Corporate Solutions, which provides assistance to local and foreign individuals and companies looking to enter the Singapore market.