Trusts, Holding Structures and the Variable Capital Company: summary
Singapore offers wealthy families and investors a complete set of structuring vehicles under its own law: the trust, the licensed and the private trust company, the Variable Capital Company and the holding company. Its trust law rests on English equity and the reforms of 2004, which introduced a 100-year perpetuity period, a firewall against foreign forced heirship rules and a limited power to reserve investment functions to the settlor. The Trust Companies Act 2005 places professional trustees under licensing and supervision by MAS, while private trust companies are exempt on condition that a licensed trust company carries out their anti-money laundering compliance. The Variable Capital Company, launched in 2020, has become the main domestic fund vehicle, with 1,406 companies and 3,443 sub-funds by the end of 2025. Holding companies still benefit from tax-free dividends, the absence of a capital gains tax and a broad treaty network, although section 10L, the global minimum tax and the new rules on corporate service providers now require real substance in Singapore.
For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.