One can derive $0!=1$ by the formula
$\frac{n!}{(n-1)!}=n$
simply put $n=1$ and we get $0!=1$ .
But a question remains in my mind: what is its physical significance? For example:
$2!$ means: in how many ways we can arrange $2$ items?
$1!$ means we can arrange $1$ item in $1$ way.
I don't know that there is "physical" significance. If you use the combinatorial interpretation of counting permutations, then you run into the empty function as the only function $\varnothing\to\varnothing$, which is vacuously a permutation. Because of the vacuity, I don't really "see" it.
If we want a choice of $0!$ that makes all of our recursions, explicit formulas and summation notations with factorials to be organized uniformly and compactly then the only choice of $0!$ is $1$: that is the true significance of the choice $0!=1$.
Related: my answer about $\binom{n}{k}$ when $(k,n)$ is not a pair of nonnegative integers with $k<n$.