Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
A private trust company (PTC) is a Singapore company incorporated to act as the trustee of one family’s trusts, giving the family board-level control over trustee decisions while retaining professional governance. Setting up a private trust company typically takes 6 to 10 weeks and suits high net worth families holding operating businesses, concentrated shareholdings or assets across several jurisdictions.
What a private trust company is
A private trust company is a company whose sole purpose is to act as trustee of a specific family’s trust or trusts. Instead of appointing an external licensed trust company, the family incorporates its own trustee vehicle. The board of the private trust company usually blends family members, trusted advisers and independent professionals, so decisions on distributions, investment mandates and reserved powers stay close to the family while still meeting fiduciary standards.
Under the Trust Companies Act 2005 and the Trust Companies (Exemption) Regulations, a PTC that acts as trustee solely for connected persons and does not solicit trust business from the public is exempt from holding a trust business licence, provided its trust administration is carried out by a licensed trust company. This exemption is the reason the structure is popular for single-family use.
Who a private trust company is for
The private trust company model earns its cost where a family has genuine complexity: an operating business that should not be handed to an external trustee, philanthropic vehicles running alongside private wealth, or beneficiaries and assets spread across Singapore, the region and beyond. Families that value confidentiality and continuity of control tend to prefer a PTC over a standard institutional trustee arrangement.
For families relocating, a PTC often sits alongside personal tax planning. Incoming principals should read our guide to Singapore personal income tax for EP holders and expats, and families weighing residence pathways may find our overview of moving to Singapore as a high net worth individual useful before committing to a structure.
Documents required to set up a private trust company
The documentation for a PTC falls into three layers: the corporate layer, the trust layer and the administration layer.
- Corporate layer: constitution of the PTC, incorporation particulars lodged with ACRA, register of members and directors, and the register of registrable controllers.
- Trust layer: the trust deed (or deeds) naming the PTC as trustee, a letter of wishes, and any deed of appointment for a protector or reserved-power holder.
- Administration layer: the administration agreement with a licensed trust company, anti-money-laundering and know-your-customer files on settlor, beneficiaries and controllers, and board governance policies.
Templates matter here because the trust deed, the letter of wishes and the administration agreement need to be internally consistent. Our related note on Singapore trust structures for HNW families sets out how these documents fit together.
Cost and timeline for a private trust company
Indicative professional costs in 2026 run from S$18,000 to S$45,000 for the initial set-up, depending on the number of trusts, the complexity of the underlying assets and whether a protector regime is added. Annual administration through a licensed trust company commonly falls between S$24,000 and S$60,000.
On timing, incorporation of the PTC itself is quick (1 to 3 working days once name and controllers are cleared), but the trust deed drafting, licensed-administrator onboarding and AML/KYC clearance drive the real timeline of 6 to 10 weeks.
Step-by-step process
- Scope the family’s objectives, assets and beneficiary classes.
- Incorporate the PTC with ACRA, appointing directors and a company secretary.
- Engage a licensed trust company to provide trust administration (required for the licensing exemption).
- Draft and execute the trust deed, letter of wishes and, where used, the protector deed.
- Complete AML/KYC and open bank and custody accounts.
- Settle assets into trust and hold the first board meeting to adopt governance policies.
Common mistakes and gotchas
The most frequent error is treating the PTC as an ordinary holding company and neglecting the administration agreement, which puts the licensing exemption at risk. A second is a mismatch between the trust deed’s reserved powers and the letter of wishes, which creates ambiguity when a distribution is later contested. A third is under-documenting controllers, given that the register of registrable controllers obligations still apply to the PTC as a Singapore company.
How a private trust company is governed
Governance is where a private trust company earns its keep. The board typically operates through committees: an investment committee that sets and monitors mandates, a distribution committee that applies the trust deed and the letter of wishes, and, in larger families, a governance or nomination committee that manages board renewal. Reserved powers can be allocated so that the family retains say over strategic matters (such as selling the operating business) while day-to-day fiduciary administration stays with the PTC.
A protector is often appointed to hold negative controls, for example a veto over the removal of the trustee or over distributions above a threshold. The protector’s powers must be drafted carefully so they check the trustee without collapsing the trust into a bare nominee arrangement, which could undermine the trust’s validity and its tax treatment.
Regulatory and tax context
A PTC does not itself apply for a fund tax incentive, but it frequently sits inside a wider family office structure that does. Families commonly pair the PTC with a Single Family Office and one of the fund tax incentive schemes administered with the Monetary Authority of Singapore. Because those incentives carry assets-under-management, spending and professional-headcount conditions, the PTC’s governance calendar should be synchronised with the family office’s annual review.
On substance, the PTC must be more than a nameplate. Board meetings should be held in Singapore, minutes kept, and key decisions genuinely taken by the board. Thin substance is the single most common weakness challenged when a structure is examined.
Ongoing obligations checklist
- Hold and minute board meetings in Singapore on a regular cadence.
- Keep the register of registrable controllers and register of members current.
- Maintain the licensed-administrator engagement to preserve the licensing exemption.
- Refresh AML/KYC on settlor, beneficiaries and controllers periodically.
- File annual returns for the PTC and align with the family office’s review cycle.
Related guides
For further reading, see our guide to Singapore personal income tax for EP holders and expats, our note on moving to Singapore as a high net worth individual, and, on this site, Singapore trust structures for HNW families.
Authoritative sources
Refer to Monetary Authority of Singapore and IRAS for the official position.
FAQs
Does a private trust company need a licence?
A PTC that acts as trustee only for connected persons and does not offer trust services to the public is exempt from holding a trust business licence, provided a licensed trust company carries out its trust administration.
How long does it take to set up a private trust company?
Incorporation is 1 to 3 working days, but the full private trust company set-up, including trust deed drafting and administrator onboarding, typically takes 6 to 10 weeks.
Who should sit on the board?
Boards usually combine family members, a trusted adviser and at least one independent professional to balance control with fiduciary discipline.
Can the family still control investments?
Yes. Reserved-power and investment-committee arrangements let the family direct investment strategy while the PTC retains trustee responsibility.
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.