As Asia's leading financial and wealth management center, Singapore, with its stable political environment, sound legal system and efficient regulatory regime, has become an important preferred destination for high net worth individuals and entrepreneurs to set up foundations. Singapore foundation is not only an important tool for wealth inheritance, but also an important platform for realizing social responsibility and long-term value creation.
🌟 Singapore Foundation Overview
In Singapore, foundations are often referred to as "foundations" or "foundations". Charity (Charitable Trust / Society / Company Limited by Guarantee) It is registered to operate under the Charities Act and relevant company legislation. Its main purpose is:
✅ Promoting charitable and public welfare (e.g., education, medical care, culture, environmental protection, etc.)
✅ Realizing long-term planning and transmission of family wealth
✅ Delivering sustainable social value and impact
Unlike commercial companies, Singapore foundations are not for profit and all income must be used for the purposes of the organization and may not be distributed to members, directors or beneficiaries of the trust (except for approved operating costs or overheads).
✅ Main forms of foundations
| typology | specificities | Applicable Scenarios |
|---|---|---|
| Company Limited by Guarantee (CLG) | No share capital and limited liability for members of the company. Subject to company law and charity law requirements. | International philanthropic projects, family foundations, social enterprise platforms |
| Charitable Trust | Managed by trustees and subject to trust law. Flexible structure but requires strict governance. | Family trusts, education/medical special funds |
| Society (registered society) | Membership-based organization, regulated by the Societies Act. Suitable for small-scale public welfare projects. | Community-based and industry-based public welfare organizations |
⚖️ Regulation & Compliance
The Singapore Foundation is required to accept Commissioner of Charities, Singapore (COC) and supervision by the relevant authorities, the main obligations include:
Registering as a charity (for tax-exempt status)
Regular submission of financial statements and annual reports
Acceptance of anti-money laundering, counter-terrorism financing regulatory requirements
Audit requirements: Audited financial statements are required for income above a specified amount (currently S$500,000)
In addition, if the Foundation wishes to obtain IPC (Institution of a Public Character) statusIts donation allows the donor to take a tax deduction (currently a tax credit of up to $2,50%).
🚀 Advantages of establishing a foundation
✅ Singapore's excellent international reputation and legal security
✅ Professional wealth management ecosystem (supported by international banks, trust companies, law firms, accounting firms, etc.)
✅ High level of tax transparency and reasonable incentives
✅ Flexible governance structure for global asset allocation and social responsibility placement
✅ Contribute to the long-term transmission of family culture, values and corporate social responsibility
📝 Basic steps for foundation establishment
1️⃣ Define purpose, governance structure, operating model (CLG / Trust / Society etc.)
2️⃣ Drafting legal documents such as charters, trust deeds, etc.
3️⃣ Submit an application for registration to the competent authority
4️⃣ Apply for charitable status and necessary tax exemption determinations
5️⃣ Establishment of governance systems and financial management mechanisms
6️⃣ Apply for IPC status as needed (optional)
⚠️ Key Notes
Prohibition of profit-sharing: All resources must be used for the purposes of the Foundation and cannot be allocated to directors or members.
Transparency in governance: Need to ensure good board governance, conflict of interest disclosure and internal controls.
ongoing supervision: Subject to annual compliance inspections by the COC and other regulatory agencies.
Tax Declaration: Even if they are entitled to tax exemption, they are still subject to the relevant declaration obligations.
🌱 Conclusion
Whether it is for the intergenerational transfer of family wealth or to promote a corporate social responsibility strategy, setting up a Singapore Foundation is an important option that deserves serious consideration. Leveraging on Singapore's internationalized legal and financial ecosystem, your foundation can be a bridge between wealth, responsibility and the future.
If you would like to learn more about the process of setting up a foundation in Singapore, tax planning and governance design, please feel free to contact us and Sincere Group will provide you with professional and customized services.
