There are entities that are established for different reasons aside from gaining profits. These entities are called non-profit organizations. The main purpose for these organizations is to conduct and support activities that affect private and public interest without any commercial consideration or gaining profits. Entities that would like to open a non-profit organization in Singapore must be aware of the country’s Companies Act, the law governing non-profit organizations. Under this law, non-profit organizations in Singapore are still able to gain profit but their main difference form commercial companies is that they do not distribute their profits and they retain it for future endeavors. Our attorneys in Singapore can help you open a non-profit organization.
You can also watch the video below for information on how to set up a non-profit organization in Singapore:
Registration of non-profit organizations in Singapore
It is very important that you register your non-profit organization in Singapore. One reason is that it would be easier to engage in different public interest activities since Singapore laws require that only legal entities are allowed to enter into such activities. Another reason is that the Singaporean Companies Act requires that only those that are duly registered entities can enter into contractual agreements. Registration of non-profit organizations in Singapore will depend on the type of entity opened. Societies are registered at the Registry of Societies while companies limited by guarantees are registered at the Accounting and Corporate Regulatory Authority. Charitable trusts are licensed by the Monetary Authority of Singapore. Our law firm in Singapore can help you register your non-profit organizations.
Types of non-profit organizations in Singapore
You can open a non-profit organization in Singapore as one of the following three types. Our Singapore lawyers have listed down the basic characteristics of each one.
These are composed of ten or more persons formed as a partnership or association, company, or club. A society does not have a separate identity from its members and a president, secretary, and a treasurer must be appointed.
These are engaged in non-profit activities that involve national or public interests. It does not issue shares and it is composed of members instead of shareholders. Each member contributes a certain amount of money in order to cover the company’s liabilities.
The creation of charitable trusts requires a donor or founder that donates properties to a group of persons, called the board of trustees, for them to administer such properties for the benefit of third persons. A trust deed is required to create a charitable trust.
Opening a non-profit organization in Singapore requires going through legal processes. Just contactour lawyers in Singapore and they will walk you through the process.
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