Licensing - Trust funds

What is Trust in Singapore?

Suppose you know the importance of financial and estate management and are also concerned about succession planning. In that case, a licensed trust in Singapore will be a suitable and reliable solution for you.

Within the meaning of the Trust Companies Act 2005, the following activities fall within the definition of “trust business” in Singapore:

• Providing trust creation services;
• acting as trustee in respect of an explicit trust;
• organising for any person to act as trustee in respect of an explicit trust;
• provision of trustee services in respect of the express trust.

A company wishing to establish or operate a trust must hold the appropriate licence. In assessing an application for a trust licence, the Monetary Authority of Singapore (MAS) considers factors such as:

• Fitness and propriety of the applicant, its shareholders, resident managers and directors;
• Track record and management expertise of the applicant and its parent company or major shareholders;
• Ability to meet the minimum financial requirements and professional indemnity insurance (PII); requirements prescribed under the Trust Companies Regulations (TCR);
• Strength of internal compliance systems and processes of the applicant;
• Business model/plans and projections and the associated risks.

Your company must appoint at least 2 resident managers, one of whom must have at least 5 years of experience. All other resident managers must have at least 3 years of experience.

In addition, it is worth highlighting separately the financial requirements imposed by the regulator on the applicant, among which are:

• a minimum authorised share capital (or qualifying assets) of S$250,000; and
• The obligation to maintain at all times a minimum net or qualified asset value and adequate PII commensurate with the risk level of your trust business.

What is a Trust Fund in Estonia?

The Investment Funds Act of the Republic of Estonia (IFS) enables the establishment of an investment fund (Usaldusfond) in the form of a joint stock company, a limited liability company or a pension fund. The provisions of the Estonian Commercial Code and the provisions of the Investment Funds Act shall apply to the establishment, operation and termination of an investment fund.

Advantages of setting up a Trust Fund in Estonia

Among the distinctive advantages of this structure, the following can be highlighted:

• No requirement to publish the identities of their investors;
• No requirement to publish the amount of investment made by each investor;
• Lower establishment costs compared to many other states in the European Economic Area;
• Quick registration procedure.

The Czech Republic currently offers the possibility to establish and operate trust funds as a property organisation. However, before launching such a fund, it is necessary to consider several peculiarities related to its registration. Below, we will look at the peculiarities of setting up a trust fund in the Czech Republic, the main requirements for its operation and how we can help you at all stages of its establishment.

What is a trust fund in the Czech Republic?

A trust fund is an organisation established to manage assets for the benefit of certain persons or purposes. The legal status of a trust fund is laid down in §1448 of the Civil Code of the Czech Republic. Trust funds are not legal entities, they have no legal personality or registered office. However, according to the Czech Tax Code, a trust fund is a taxable entity and is treated as a legal person in the tax process.

In other words, a trust is a form of management of any assets created by separating them from the settlor’s estate, after which such assets are neither the property of the trustee, the settlor, nor the beneficiary.

A trust may be established by assigning the settlor’s assets by contract in the form of a notarial deed or a will. Trusts can be used primarily as a tool for protecting and long-term managing corporate and family property, ensuring the confidentiality of ownership information, and structuring future asset transfers in a safe and stable manner.