Singapore has long established itself as a leading metropolis in Asia, and its well-regulated non-profit sector adds on to its grandeur. Singapore attracts many foreign investors and philanthropists seeking to establish charitable initiatives, thanks to its transparent system, robust governance, and attractive tax incentives. Before establishing a non-profit, it is important to understand the different legal structures available, as well as the procedures in doing so.
Types of charities and their requirements:
Public Company Limited by Guarantee (CLG)
Introduction: A public company limited by guarantee is one that conducts non-profit activities benefiting the public interest, and typically does not have shares. Instead, it has members who agree to contribute a fixed amount towards the company’s liabilities if it is wound up.
Requirement: It requires at least 2 directors (at least 1 of whom must be ordinarily resident in Singapore e.g., a Singapore Citizen, PR, or a valid Employment Pass holder), 2 members, and a qualified company secretary, who is ordinarily resident in Singapore.
Society
Introduction: A society is like a club, group or association with at least 10 members. Generally, it is set up for smaller groups with strong community ties and not heavily reliant on donations or external funding.
Requirement: To start a society, 10 people are required, with 3 key office bearers, namely the President, Secretary and Treasurer, who must be Singapore Citizens or Singapore Permanent Residents.
Charitable Trust
Introduction: A charitable trust in Singapore can be established by anyone who wants to dedicate some of their assets or income to charitable purposes and prefers a structured approach to giving.
Requirement:
You must have at least 3 governing board members, with a majority who are Singapore Citizens or PRs and ordinarily resident in Singapore. (Trustees of a charitable trust should be appointed with this in mind.)
Registration process
The name must adhere to Singapore’s naming regulations. Avoid names that are (a) similar to an existing charity; (b) misleading, as to the true nature of the charitable purposes and activities, to the public; (c) containing offensive words; or (d) entirely in foreign language. It must include an English term to differentiate the nature of your organisation (e.g. Temple, Church, etc.)
Decide whether the organization will be a society, a company limited by guarantee (CLG), or a charitable trust.
The necessary documents include the organisation’s governing instrument (constitution), financial information, 2-year planned activities and fund disbursement plans.
Incorporate/register the entity first (CLGs with ACRA; societies with the Registry of Societies; trusts by trust deed). Then submit the charity registration via the Charity Portal.
The cost is subject to the type of non-profit structure. CLGs normally have higher registration fees due to corporate compliance obligations.
Once the application is approved, a certificate of registration will be given, allowing the organisation to commence operations.
Conclusion
Establishing a charity or non-profit in Singapore offers expats and locals alike the opportunity to contribute meaningfully to society. For foreign philanthropists and entrepreneurs, understanding these structures and following the proper registration process is essential to maximising the impact of their charitable ambitions. Our team at Legal Expat Singapore is here to provide professional guidance for expats who need assistance with the registration process.
Disclaimer: This article provides general information and does not constitute legal advice. Please seek professional advice for your specific situation.
Do reach out to us at Legal Expat if you require professional advice. We have a team of qualified lawyers that can assist you. Email us at: info@legalexpat.sg or drop us a WhatsApp at: +65 8093 4393 if you require assistance.