How do I Set up a Charitable Foundation in Singapore?
Setting up a charitable foundation in Singapore involves a few steps:
1. Choose a Structure: While a charitable foundation sounds distinct, it's actually the designation for a specific type of trust. In Singapore, you'll need to establish a legal entity first, which can be one of three options:
Company Limited by Guarantee (CLG): This structure functions similarly to a company but with a social purpose instead of shareholders. It requires registration with the Accounting and Corporate Regulatory Authority (ACRA).
Society: Registered with the Registry of Societies (ROS), this is a common option for non-profit organizations.
Charitable Trust: This is the foundation structure itself. It doesn't have a separate legal identity and operates under a Trust Deed.
2. Prepare the Trust Instrument: This document, also known as the Constitution for a CLG or Society, outlines the foundation's purpose, governance, and management. For a charitable trust, it's called a Trust Deed.
3. Register as a Charity: Once your legal entity is set up, apply for charity status with the Commissioner of Charities. This grants tax exemptions and allows you to receive donations from charitable trusts.
4. Apply for Grants (Optional): With charity status, you can explore applying for relevant grants to support your foundation's work.
Here are some resources to help you navigate the process:
How Bestar SG can Help
Bestar, an accounting firm, can assist you in several ways with setting up your charitable foundation:
Choosing the Right Legal Structure: Our expertise can guide you towards the most suitable option (CLG, Society, or Charitable Trust) based on your foundation's goals and activities.
Drafting the Trust Instrument/Constitution: We can help draft the legal document outlining your foundation's purpose, governance, and management structure.
Registration with ACRA or ROS: For a CLG or Society, Bestar can facilitate the registration process with the relevant authority.
Charity Application: We can guide you through the application process for obtaining charity status with the Commissioner of Charities.
Ongoing Compliance: Bestar can provide advice and support on adhering to the regulations and requirements for maintaining your charity status.
By leveraging Bestar's services, you can ensure a smoother and more efficient process for setting up your charitable foundation in Singapore, allowing you to focus on your philanthropic mission.
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