Private Trust Company (PTC) setup — Timeline and processing benchmarks
A private trust company (PTC) is a Singapore-incorporated company whose sole purpose is to act as trustee of one or more family trusts, allowing a family to retain control of trustee decisions while keeping the trust structure private. For most families, PTC setup runs about 6 to 10 weeks from instruction to a funded, operational structure.
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 why families use one
A private trust company is a company limited by shares or by guarantee that is set up specifically to serve as trustee of family trusts, rather than offering trustee services to the public. Because the family controls the PTC board, it keeps a meaningful say over investment and distribution decisions that would otherwise sit with an external licensed trustee.
The PTC itself does not need a trust business licence when it acts solely as trustee of connected family trusts and does not solicit business from the public. This exemption is the practical reason the structure is popular with high net worth families consolidating assets across companies, real estate and investment portfolios.
Families typically pair a PTC with a Single Family Office. If you are also weighing the operating-company side of the wealth structure, our guide on Declaration of Trust Over Company Shares in Singapore (2026) sets out how the pieces fit together.
Who a PTC is suitable for
PTCs suit families with substantial and diversified assets, a desire for succession continuity across generations, and a preference for keeping trustee governance inside the family rather than delegating it wholly to a professional trustee. A PTC is rarely cost-effective below roughly S$20 million of trust assets once administration is factored in.
The structure also appeals to families with operating businesses, because the board can include family members alongside professional advisers, aligning trustee decisions with the commercial reality of the underlying companies.
Eligibility and regulatory requirements
The relevant exemption for private trust companies is found in the Trust Companies Act 2005 and its subsidiary regulations, which recognise that a company acting as trustee only for trusts whose settlors are connected persons is not carrying on trust business requiring a licence. The Monetary Authority of Singapore administers this regime.
A PTC must appoint a licensed trust company to carry out the administration of the trusts and to conduct anti-money-laundering due diligence on the settlors and beneficiaries. Section 157A(1) of the Companies Act 1967 recognises that the directors manage the business of the company, so the composition of the PTC board is central to how control is exercised.
Every Singapore company must maintain a registered office and a resident company secretary, and the PTC is no exception.
Costs and timeline benchmarks (2026)
Indicative professional fees for establishing a PTC and its first trust are commonly in the range of S$25,000 to S$60,000, depending on complexity, with the licensed administrator charging an ongoing annual fee of around S$18,000 to S$40,000. ACRA incorporation of the PTC itself costs S$300 in name application and registration fees (S$15 name + S$300 registration under current ACRA scheduling).
On timeline: name reservation and incorporation take 1 to 3 working days once know-your-client checks clear; drafting the trust deed and PTC constitution typically takes 3 to 5 weeks; and funding plus bank account opening adds a further 2 to 4 weeks. A realistic end-to-end benchmark is 6 to 10 weeks.
Step-by-step process
First, scope the family assets and objectives with your advisers and confirm the PTC is the right vehicle. Second, incorporate the PTC with ACRA and appoint directors and a company secretary. Third, appoint a licensed trust administrator and complete AML due diligence. Fourth, execute the trust deed and settle the initial assets. Fifth, open bank and custody accounts and transfer the assets. Personal tax residency of settlors and beneficiaries matters here; see Hiring Foreign Tech Talent in Singapore: A Strategic Pass Playbook (2026) for how foreign-sourced income is treated.
For families incorporating an operating or holding company alongside the trust, the mechanics of a lean corporate vehicle are covered in Exempt Private Company (EPC) mechanics — Timeline and processing benchmarks.
Common mistakes and gotchas
The most frequent error is under-resourcing the PTC board so that no one with genuine trustee experience sits on it, which undermines the governance rationale. A second is neglecting the ongoing AML obligations, which the licensed administrator must discharge continuously, not just at onboarding. A third is assuming the PTC removes all tax reporting; settlor and beneficiary tax positions in their home jurisdictions still apply.
Choosing between a PTC and an external professional trustee
Families often reach a fork between appointing a licensed professional trustee and setting up their own PTC. A professional trustee offers turnkey expertise and regulatory cover but takes discretionary control of investment and distribution decisions, which some families find uncomfortable for a multi-generational business.
A PTC keeps that control inside a family-appointed board while still using a licensed administrator for the regulated heavy lifting. The trade-off is cost and governance discipline: a PTC only works well where the family commits to running a real board with proper minutes, conflict management and record-keeping.
A common hybrid is a PTC board that mixes family members, a trusted family adviser, and one or two independent professional directors. This preserves family voice while importing the fiduciary rigour a court would expect to see if trustee decisions were ever challenged.
A worked cost example
Consider a family consolidating S$40 million across an investment portfolio, two properties and shares in an operating company. Setup might comprise ACRA incorporation of the PTC (about S$315), constitution and trust deed drafting (S$30,000 to S$50,000), and initial AML onboarding by the licensed administrator (included in first-year fees).
Year-one all-in cost commonly lands between S$45,000 and S$90,000, with recurring annual administration of S$18,000 to S$40,000 thereafter. Against a S$40 million asset base, that recurring cost is well under 0.1% a year, which is why the structure is usually reserved for larger estates.
Bank and custody onboarding is frequently the longest pole in the tent; families should begin know-your-client collection early to avoid the funding step slipping beyond the 10-week benchmark.
Ongoing governance and reserved powers
Once operational, the PTC must hold regular board meetings, document trustee decisions, and keep the trust accounts and beneficiary records current. The licensed administrator conducts ongoing AML monitoring and periodic reviews of the settlor and beneficiary profiles.
Many families layer in a reserved-powers structure, where certain decisions (such as replacing the manager or amending the trust) require the consent of a protector or a family council. This adds a check on the board without diluting the day-to-day control the PTC was created to preserve.
Directors should remember that acting as trustee is a fiduciary role: decisions must be made in the interests of beneficiaries as a whole, and self-dealing or unmanaged conflicts can expose the PTC and its directors to challenge.
Official references
The primary authorities for this topic are the relevant Singapore regulators and legislation:
FAQs
Does a private trust company need a licence in Singapore?
Not where it acts solely as trustee of trusts whose settlors are connected persons and does not solicit trust business from the public. It must still appoint a licensed trust company to administer the trusts and conduct AML checks.
How long does PTC setup take?
A realistic benchmark is 6 to 10 weeks: 1 to 3 working days for incorporation, 3 to 5 weeks for the trust deed and constitution, and 2 to 4 weeks for funding and account opening.
How much does a PTC cost to set up?
Professional set-up fees commonly run S$25,000 to S$60,000, with ongoing administration of roughly S$18,000 to S$40,000 a year. ACRA incorporation fees are modest at about S$315.
Can family members sit on the PTC board?
Yes. Retaining family involvement on the board is the main reason families choose a PTC over an external professional trustee, though experienced independent directors are strongly advised.
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.