Singapore saw over 16,000 new businesses formed in the second quarter of 2013, up 13.22 per cent from the first quarter, as more investors feel confident about setting up shop in the Asian financial hub, says the latest "Singapore Business Formation Statistics Report" by Janus Corporate Solutions. 

Financial services activities, except insurance and pension funding, accounted for 13 per cent of the 16,027 business created in the period. Wholesale trade made up 20 per cent, head office and management consultancy 10 per cent, computer programming, consultancy and related activities six per cent, and retail trade six per cent.

The report says that the country plays host to over 700 local and foreign financial services firms, even citing PricewaterhouseCoopers' prediction that come 2015 Singapore will overtake Switzerland as the top international finance centre for private client assets. Three of the city-state's banks have also consistently ranked on Bloomberg Market's list of strongest banks in the world, with OCBC listing second, DBS fifth and United Overseas Bank trailing close. 

Most of the businesses and entrepreneurs investing in Singapore come from the U.S., China, India, Japan, U.K. and Hong Kong. There were also investors from the British territories of the British Virgin Islands and Cayman Islands. 

According to Janus, while corporate registrations mostly came from within the state, 47 per cent, BVI ranked highest among the foreign entrants with 10 per cent, followed by the U.S. (5 per cent) and then Hong Kong (4 per cent). When it comes to individual registrations, Singapore still led with 75 per cent, but it was China that followed with 4 per cent, and then India with 3 per cent.

"Singapore has been known for its rational trade policy characterised by simple tariff structures and transparent administration. This made the country an attractive trade hub, especially for companies looking to take advantage of Singapore's strategic location in order to expand to the rest of the region," said the report. 

The most common business entity type created in the quarter, as in previous periods, was the private limited company with 9,145 formations. This was followed by sole proprietorships with 5,433.