A trust company in Singapore primarily provides trust formation and asset management services to a wide range of clients. Such entities fall under the ambit of the Trust Companies Act. The Monetary Authority of Singapore (MAS) regulates trust companies and their registration affairs. Trust formation requires submitting an application to the Monetary Authority of Singapore (MAS) through the proposed trustee-manager or a certified agent. If you need third-party assistance for business trust in Singapore, you can partner with Business Setup Worldwide(BSW). BSW offers laser-focused services to clients worldwide, providing comprehensive support from start to finish.
What is a Business Trust in Singapore?
As per the Trust Companies Act, a business trust in Singapore is one that:
- Renders services relating to trust formation;
- Acts as a trustee for an express trust (a trust deliberately and intentionally created by the settlor);
- Arranges a person to act as a trustee;
- Facilitates trust management services concerning the express trust
The entity must maintain a minimum asset worth $250,000 to qualify for trust company registration.
It is important to note that a trust business license is not available to the following:
- MAS-regulated banks and merchant banks.
- Capital markets service license holders providing fund management or custodial services for securities.
- Lawyers and accountants.
- Private trust companies.
- Persons involved in trust business for debenture issuance.
- Trustees of approved collective investment schemes.
Benefits of Starting a Trust Company in Singapore
Opening a trust company in Singapore can be transformative for a wide range of businesses. Here’s why?
Thriving Market for Asset Management
In 2021, Singapore's asset management market was valued at S$5.4 trillion, representing a 16% increase from the previous year. Seventy-eight percent of foreign entities contributed to this significant growth. Single-family offices, also known as SFOs, experienced a substantial 43% growth in 2024, reflecting a surge in demand for trust services.
Supportive Environment
Hailed as the financial powerhouse, Singapore offers a robust political environment, infrastructure, and strong regulation. Presently, it is home to more than 700 financial institutions, reinforcing a thriving landscape for trust development.
Tax Liberalization
Singapore's tax-friendly framework does not include estate duty and capital gains taxes. Income originating from overseas locations for a foreign trust may be exempt from tax under specific circumstances. Thus, enhancing its appeal among wealth-conscious entities.
Rising HNWI Population
Asia's high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) are thriving at a rapid pace, with the UHNWI population expected to increase by 33% by 2025. It fosters a thriving environment for entities seeking to establish a trust business.
How can you apply for Trust formation services in Singapore?
Leveraging trust formation services in Singapore is a viable way to escape complicated legalities. Here’s how you can tap into such services:
Step 1: Drop an inquiry
The first step involves navigating to the official Business Setup Worldwide (BSW) website and submitting an inquiry.
Step 2: Personalized Consultation
BSW’s expert will contact you after reviewing your inquiry. They will assist you with everything from the registration process and required documents to service costs.
Documents Required for Trust Company Formation in Singapore
Depending on your goals, you need to arrange various key documents for trust company formation. These include, but are not limited to:
- Memorandum and Articles of Association for local and foreign entities
- Incorporation certificate
- ACRA-issued business profile
- Audited financial statements (if applicable).
- Details concerning fund procurement
- Confirmation about fulfilling the minimum capital requirement
- Completed MAS Personal Questionnaire Forms (to be filled by resident manager and directors)
- CVs/resumes of directors and resident managers.
- Certified copies of ID proof concerning directors, residential managers, and shareholders.
- Cover letter to MAS.
Why Choose BSW for Forming a Trust Company in Singapore?
Establishing a business trust requires compliance with numerous local laws and completing various paperwork. But with BSW, you no longer have to encounter such inconveniences, as our team will take care of everything from the ground up. BSW offers a perfect blend of skill and expertise in meeting diverse business goals. Contact us today and let us know how we can help you!
