How to Set Up a Trust Fund in Singapore — Using a Private Trust Company (PTC) and a Company Limited by Guarantee (CLG)

Setting up a Trust Fund in Singapore – Understanding the CLG-PTC Trust Structure

When families ask, “How do I set up a trust fund that lasts for generations?”, the best answer today often combines two Singapore legal vehicles:

• a Company Limited by Guarantee (CLG), and
• a Private Trust Company (PTC) beneath it.

Setting up a Trust Fund in Singapore – How it works

• The CLG sits at the top as the family governance entity (no shareholders, only members).
• The PTC is wholly owned and controlled by the CLG.
• The PTC serves as trustee for one or more trust funds established for different family branches.
  This separation of governance (via the CLG) and administration (via the PTC) provides continuity, accountability, and long-term stability across generations.
• Under the Singapore regulations by the Monetary Authority of Singapore, the PTC needs to engage a licensed Trust Company to provide ongoing AML/KYC monitoring.

Setting up a Trust Fund in Singapore – Why Families Use a CLG over a PTC

• Governance Continuity: CLG membership changes easily without affecting the PTC or trust assets.
• Family Council Representation: The CLG board functions as the family council deciding policy, philanthropy, and distributions.
• Regulatory Simplicity: Both entities fall under the Companies Act and avoid complex fiduciary licensing.
• Succession Planning: Prevents concentration of trustee power in one individual.
• Legacy Protection: Mirrors proven models used by global dynastic families.

Setting up a Trust Fund in Singapore – Step-by-Step: How to Set Up a Trust Fund Using a CLG and PTC

If you’re researching how to set up a trust fund in Singapore, here’s how the process unfolds:

1. Define Objectives: Identify the purpose of the trust — wealth protection, education funding, or charitable goals.
2. Form a CLG: Incorporate a Company Limited by Guarantee to serve as the apex family governance body.
3. Incorporate a PTC: The CLG becomes the sole member of the Private Trust Company, which will act as trustee.
4. Draft Trust Deeds: Our lawyers prepare the trust deed, PTC constitution, and CLG charter defining governance rules and family council powers.
5. Fund the Trust: Transfer assets — shares, properties, or investment portfolios — into the trust managed by the PTC.
6. Banking & Compliance: Open accounts, maintain statutory filings, and implement compliance frameworks.
7. Ongoing Family Governance: The CLG convenes annual “family council” meetings to oversee the PTC’s decisions and long-term policy.

Setting up a Trust Fund in Singapore– Case Snapshot

A Singapore family exploring how to set up a trust fund for long-term control incorporated a CLG-PTC structure.

The CLG acts as the family council, electing directors to the PTC, which now serves as trustee for four trusts (education, property, investment, philanthropy).

This arrangement preserved confidentiality, created an enduring governance system, and avoided dependence on an external trustee.

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Setting up a Trust Fund in Singapore – Frequently Asked Questions (FAQs)

Q: How do you set up a trust fund with a PTC and CLG?
A: You incorporate a CLG to act as the family council, set up a PTC owned by the CLG, and establish one or more trust funds for the family.

Q: Why use a Company Limited by Guarantee?
A: A CLG has no shareholders — only members — making it ideal for representing family branches or generations without ownership disputes.

Q: How can I set up a trust for family assets and control who runs it?
A: A CLG-owned PTC lets you define governance rules, ensuring that family representatives control the trustee and protect long-term intent.

Q: Do I need regulatory approval?
A: No specific trustee licence is required if the PTC only serves trusts for one family under the exemption.  Filings will need to be made for such exemption. 

Q: How long does it take to set up the structure?
A: Typically 4–6 weeks, depending on incorporation timelines and bank account openings.

Setting up a Trust Fund in Singapore – Why Work With Us

We design Rockefeller-style CLG-PTC structures for wealthy Asian families who want:

• a clear family governance constitution,
• legally compliant trust setup, and
• sustainable, long-term control across generations.

Our team integrates legal, tax, and fiduciary expertise so you can focus on legacy — not paperwork.

Setting up a Trust Fund in Singapore- Call to Action

If you’re wondering how to set up a trust fund with long-term governance and protection, the CLG-PTC structure is the modern blueprint.
👉 Book a Consultation to Design Your Family Trust Structure