BUSINESSES AND COMPANIES, 1975-77

Mr Hwang Soo Jin asked the Minister for Finance, in 1977, (a) how many businesses were registered with the Registry of Businesses; (b) how many companies were registered with the Registry of Companies; (c) how many businesses ceased to operate as a result of insolvency; and (d) how many companies ceased to operate as a result of insolvency; and if he will give the comparative figures for 1976 and 1975.

Mr Hon Sui Sen: The number of new businesses and companies registered with the Registries of Businesses and Companies for the years 1975, 1976 and 1977 is shown below: 1975 1976 1977 New Businesses registered 10,115 10,525 10,553 Companies registered Local companies 2,296 2,612 2,885 Foreign companies 83 84 71

The number of businesses and companies which ceased operations in the corresponding years is as follows: 1975 1976 1977 Businesses terminated 8,546 5,492 6,379 Companies terminated Wound-up by the Court (Local Companies) 36 86 127 Struck-off (Local Companies) 414 386 275 Wound-up voluntarily and ceased business Local Companies 51 50 75 Foreign Companies 83 90 55

Businesses are not required to give a reason for terminating operations. The procedure requires that they complete a form giving information only of the name and address of the business, the Certificate of Registration number and the date of termination of business. However, normally a business is terminated because it has failed. The larger number of terminations of business operations in 1975, however, may be an effect of the Business Registration Act, 1973, brought into force on 1st September, 1974 which requires all businesses to have their registrations renewed annually.

In the case of companies that terminate operations, by and large, those that are wound-up by the Court and those that are struck-off under Section 308 of the Companies Act (viz. because they have ceased to carry on business for a period of time) are normally insolvent.

The majority of companies voluntarily wound-up are solvent. Companies ceasing business in Singapore apply to foreign companies which for various reasons decide to cease operation as a branch in Singapore.