Starting a Non-Profit Organisation in Singapore

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What is a Non-Profit Organisation in Singapore?

A non-profit organization (NPO) is a legally registered entity set up with its principal activities being that of a public or private interest. As the name suggests, NPOs are not set up for profits. Unlike a typical commercial entity which distributes profits to it’s shareholders, an NPO retains any “surplus” it generates and directs it towards promoting it’s activities or programs.

Are Non-Profit Organisations allowed to make a profit?

It is advisable for NPOs to make a reasonable profit annually. This will help to pay for unexpected expenses. Some income generating ways include:

  • Charging fees to members or public for services
  • Receiving income or gains from investment in shares or other instruments
  • Receiving income by leasing or selling property

Generally, profit generation is allowed. However, NPOs will have to ensure that such profits are not distributed to it’s members or any individuals. Rather, the profits must be directed towards the stated goals or aims of the NPO.

Types of Non-Profit Organisations

NPOs are also known as Voluntary Welfare Organisations (VWOs) in Singapore. An NPO can be registered under the law as one of the following entities:

Please click to find out more of each of the entities.

Thinking of starting your own Non-Profit Organisation?

Starting a Non-Profit Organisation requires a good and careful understanding of the legal obligations of all parties involved. The following tips will help guide your decision process:

  • Provide full and complete transparency to all members of the entity and the public
  • Create a constitution or a set of by-laws and rules that will govern the NPO.
  • Decide on the legal structure to use for the set up of the NPO.

Call Us Now!

We at HC Consultancy can provide you with the initial consultancy, guidance and eventual set up and administration of your Non-Profit Organisation. It is always a good idea to start all new ventures right. Come talk to us for an obligation-free discussion.

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