Private Trust Company (PTC) setup — Costs and fees breakdown
A private trust company (PTC) is a Singapore company incorporated solely to act as trustee of one family’s trusts, allowing the family to retain control over trustee decisions while ring-fencing assets for succession. Setting one up typically costs S$15,000 to S$45,000 in the first year and takes four to eight weeks.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What a private trust company is and who it is for
A private trust company is a Singapore-incorporated company whose constitution restricts it to acting as trustee of trusts for a single family or connected group. Unlike a licensed trust company that offers trustee services to the public, a PTC does not solicit business from third parties, so it falls within the exemption framework administered by the Monetary Authority of Singapore. The structure suits high-net-worth families holding operating businesses, concentrated shareholdings, or assets that benefit from family members sitting on the board and shaping trustee decisions rather than handing full discretion to an external institutional trustee.
Families typically reach for a PTC when the asset base is large, when an external trustee would be uncomfortable holding a single concentrated or illiquid holding, or when the family wants continuity of decision-making across generations. The PTC sits at the top of the structure: it is the trustee of one or more family trusts, and its own shares are usually held by a purpose trust or a foundation so that no individual owns the trustee. For families also weighing a fund or family-office layer, our guide to Singapore trust structures for HNW families sets out how the trust sits alongside investment vehicles.
Regulatory basis and exemption conditions
The Trust Companies Act 2005 requires anyone carrying on a trust business in Singapore to be licensed, but the Trust Companies (Exemption) Regulations carve out a PTC that administers trusts for a single family and does not solicit trust business from the public. To rely on the exemption, the PTC must engage a licensed trust company to carry out the trust administration and to perform anti-money-laundering checks, and it must not hold itself out as providing trustee services generally.
The trustee’s duties are anchored in the Trustees Act 1967, which sets the statutory duty of care, powers of investment, and rules on delegation. The Act allows trustees to appoint agents and custodians, which is how a PTC outsources day-to-day administration while the family-controlled board retains strategic decisions. Distributions, investment mandates, and the appointment of protectors are then governed by the trust deed itself.
Private trust company setup costs and fees breakdown
Budgeting for a PTC means separating one-off setup from recurring annual costs. Indicative 2026 figures from the Singapore market:
- PTC incorporation and constitution drafting: S$3,000 to S$8,000.
- Trust deed and purpose-trust documentation: S$8,000 to S$25,000 depending on complexity and number of trusts.
- Licensed trust company administration (annual): S$18,000 to S$60,000.
- Corporate secretary, registered office and nominee/resident director: S$2,500 to S$6,000 per year.
- Annual accounting, tax filing and AML review: S$5,000 to S$15,000 per year.
Income generated within a properly structured trust may qualify for exemption. Section 13G of the Income Tax Act 1947 provides an exemption for qualifying foreign trusts, and Section 13Q addresses locally administered trusts, each with conditions on settlor and beneficiary residence. Families comparing the personal-tax position of relocating members should read our walkthrough on the foreign-sourced income exemption for individuals.
Step-by-step process and timeline
The typical sequence runs: (1) scope the family’s assets and succession goals with advisers; (2) incorporate the PTC with a restricted-object constitution; (3) appoint a licensed trust company to administer; (4) settle the purpose trust that will own the PTC’s shares; (5) execute the family trust deed and transfer assets in. From a clean instruction set, allow four to eight weeks. Asset transfers involving operating companies, property, or foreign holdings can extend this materially. Where the family is also incorporating a holding or operating company, our cross-site explainer on the Exempt Private Company mechanics covers the corporate layer.
Common mistakes and gotchas
The most frequent errors are: relying on the exemption while quietly soliciting third-party business, which voids it; leaving PTC shares in an individual’s name so the structure collapses on that person’s death; under-documenting the reserved powers of a protector, creating disputes later; and neglecting substance, where the board never meets in Singapore and the family-control rationale becomes a paper fiction. Each undermines both the asset-protection and the tax position.
Who should consider a PTC and who should not
A private trust company earns its keep where the asset base is large, where decision-making benefits from family involvement, and where continuity across generations is a priority. Families holding a controlling stake in an operating business often prefer a PTC because an institutional trustee may be reluctant to hold a single concentrated, illiquid asset or to make active business decisions. The PTC’s family-controlled board can do both, while a licensed administrator handles compliance.
It is less suitable where the asset base is modest, where a simple discretionary trust with an external professional trustee would do, or where the family cannot commit to genuine governance, including regular board meetings held in Singapore. Without that substance, the cost and complexity of a PTC are hard to justify, and the structure’s protective purpose weakens.
Governance, protectors and substance
The board of a PTC typically blends family members with independent or professional directors who bring fiduciary discipline. A protector, named in the trust deed, can hold reserved powers such as vetoing distributions or replacing the trustee, providing a check without displacing the trustee’s role. These powers must be drafted with care: too much reserved power can expose the structure to challenge that the settlor never truly relinquished control.
Substance is the thread running through everything. Board meetings should be minuted and held in Singapore, key decisions documented, and the licensed administrator’s involvement real rather than nominal. Substance supports both the regulatory exemption and the tax position, and it is the first thing scrutinised in any dispute or audit.
Worked example
Consider a family with a S$120 million estate spanning an operating company, listed securities and two properties. They incorporate a PTC, settle a Singapore trust holding the operating company shares, and place the PTC’s own shares in a purpose trust. The first-year cost lands around S$35,000, with recurring annual costs near S$45,000. In return, the family retains board-level control of the business through the PTC while ring-fencing the assets from individual estate exposure and creating an orderly succession path. The numbers only make sense at this scale; for a S$5 million estate, a straightforward trust would be the proportionate choice.
Official resources
Authoritative sources for this topic include www.mas.gov.sg, www.iras.gov.sg and www.lawsoc.org.sg.
FAQs
Does a private trust company need a MAS licence?
No, provided it administers trusts only for a single family, does not solicit trust business from the public, and engages a licensed trust company for administration and AML compliance. Step outside those conditions and a full trust business licence becomes necessary.
Who owns the shares of the PTC?
Best practice is for the PTC shares to be held by a non-charitable purpose trust or a foundation, so that no individual owns the trustee and control survives the death of family members.
How long does it take to set up?
Four to eight weeks from a complete instruction set, longer where operating companies, real estate, or foreign assets must be transferred into the trust.
What ongoing costs should we expect?
Plan for S$25,000 to S$80,000 per year across licensed administration, corporate secretarial, accounting, tax and AML review, scaling with the number of trusts and asset complexity.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.