The fiduciary is a person, company or any other type of organization or institution that acts on behalf of another party (person or company) with the purpose of managing various assets. Foreign investors who open companies in Singapore are allowed to appoint fiduciaries who will act in their best interest and good faith.
The fiduciary and the party he/she works for will establish a relation based on a contract in most of the cases. In Singapore, acting as a fiduciary is considered providing a service for another party called a beneficiary.
In our article, we invite you to read about the types of fiduciaries, their duties and the relations they can enter into with the parties they represent.
You can rely on us for fiduciary services and assistance if you want to open a company in Singapore.
Types of fiduciaries in Singapore
There are several categories of fiduciaries in Singapore, and among them, the most common are:
- the trustee refers to the services provided by an administrator of a trust who acts on behalf of a beneficiary;
- the directors of Singapore companies also have fiduciary duties towards the shareholders;
- agents and lawyers can also provide fiduciary services, respectively to respect the fiduciary duties on behalf of their clients;
- partners will also have fiduciary duties towards one another in a business in Singapore;
- financial advisers also act as fiduciaries on behalf of their clients and under the provisions of the Financial Advisers Act.
Fiduciaries can engage in managing various assets and representing the beneficiary’s interests.
There are also the fiduciary services offered by our company formation specialists in Singapore who can represent foreign investors in various actions.
The duties and powers of fiduciaries in Singapore
When providing fiduciary services in Singapore, it is important to understand that the trust vested in a person or company to offer such services comes with specific duties and powers. The main duties of a fiduciary refer to the obligation of avoiding conflicts of interest and avoiding gaining unauthorized profits when completing their activities.
Singapore fiduciaries also have various powers, among which the power of discretion to act on behalf of the beneficiary and access to sensitive information, which makes the beneficiary/client vulnerable. This is why when appointing a fiduciary in Singapore, a contract of service is usually signed.
You can rely on our Singapore company formation agents for complete information on the legislation that governs fiduciary services in the city-state.
Fiduciary services provided by our agents in Singapore
One of the most employed types of fiduciary services in Singapore is related to the company registration procedure. These are often requested by foreign entrepreneurs who want to set up companies in Singapore and who are required by law to appoint local agents to complete the incorporation process on their behalf. This is also one of the reasons, fiduciary services are well-regulated in Singapore.
Our agents in Singapore can act as fiduciaries when it comes to starting a business in the city-state, but other similar services are available as it follows:
- – nominee shareholder services are available when setting up offshore companies in Singapore;
- – nominee director services are also available in the lack of a Singapore resident director;
- – nominee secretary services are at the disposition of foreign business owners who are bound by the Company Law to appoint one.
These services are provided in accordance with the provision of the Company Law and other subsidiary legislation in Singapore. Our company registration consultants in Singapore can offer one or more these services as part of the business incorporation procedure with the purpose of easing and speeding the steps to complete with the Accounting and Corporate Regulatory Authority.
If you need legal services in another country, such as USA, we can put you in touch with our local partner lawyers.
Why start a business in Singapore?
Singapore is one of the most important international business centers in Southeast Asia. With a thriving financial industry, Singapore attracts thousands of investors on a yearly basis and statistics place it among the top investment destinations in the world.
According to the Singapore Statistics Department:
- – at the end of 2018, Singapore’s Foreign Direct Investment (FDI) stock had reached 1,736 billion SGD, an increase of 10.8% compared to the previous year;
- – direct equity investment represented 91.5% of the entire FDI registered by Singapore in 2018;
- – the financial and insurance sector remained one of the top FDI recipients with 927,9 billion SGD:
- – recent data indicates an increase of the trading sector of 5.7% in February 2020.
For fiduciary services related to setting up a company in Singapore, please contact our local representatives.