top of page
pexels-cottonbro-3943724.jpg

Escrow Service

What Are Escrow Services?

In an escrow arrangement, an impartial third party which known as the escrow service provider. It temporarily holds assets or funds on behalf of the transacting parties. These assets are only released when all conditions specified in the escrow agreement are satisfied, safeguarding both parties from potential fraud or disputes.

When is it needed?

Escrow services are commonly utilized in scenarios requiring a high degree of trust and accountability, including:

Image by Mike Enerio

Property Transactions

In Singapore, it's legally mandated to engage a conveyancing lawyer and set up an escrow account for private property transactions. 

Business Handshake

Business Deals

When purchasing large shipments or engaging in substantial business transactions, using an escrow service ensures that both buyer and seller fulfill their contractual obligations.

Image by Jakub Żerdzicki

Landlord and Tenant Agreements

In rental disputes, tenants may use escrow accounts to ensure landlords complete necessary repairs before releasing rental payments.

The Escrow Process

01

Agreement

The buyer and seller agree to the terms of the transaction and the conditions under which the escrow agent will release the funds or assets.

02

Deposit

The buyer deposits the agreed funds or assets into the escrow account managed by the escrow service provider.

03

Verification

The escrow agent verifies that all conditions of the agreement are met, such as the completion of property inspections or delivery of goods.

04

Release

Once all conditions are satisfied, the escrow agent releases the funds or assets to the seller, and ownership is transferred to the buyer.

Providers of Escrow Services in Singapore

In Singapore, escrow services are offered by various entities, including:

Law Firms

Many law firms provide escrow services, particularly for property transactions, ensuring legal compliance and proper handling of funds.

Banks

Certain banks offer escrow accounts to facilitate secure transactions between parties.

Singapore Academy of Law

This institution provides escrow services, leveraging its legal expertise to manage transactions effectively.

Men with Calculator

Cost of Escrow Services

The fees for escrow services in Singapore vary depending on the type of transaction and the service provider. For private property transactions, conveyancing fees, which include lawyer fees, stamping fees, and other related costs which can range from S$2,500 to S$5,000.

Benefits of Using Escrow Services

Engaging an escrow service is a prudent step in significant transactions, offering peace of mind and safeguarding the interests of all parties involved.

Business Meeting

1

Security

Ensures that funds or assets are only released when all contractual conditions are met, protecting both parties.

2

Trust

Provides confidence in the transaction, as an impartial third party manages the process.Provides confidence in the transaction, as an impartial third party manages the process.

3

Legal Compliance

Particularly in property transactions, using escrow services helps ensure all legal requirements are fulfilled.

Secure Your Next Transaction with Confidence

Secure, Neutral & Transparent Fund Holding for Businesses and Investors

  • What documents do I need to prepare to incorporate my company?
    For Individuals: (a) Original copy of directors and company officers' citizen ID card and passport, or certified copy by certified public accountants, lawyers and notaries (b) Original copy of proof of address of the directors for the last 3 months (such as bank statements, utilities bills, gas bills, landline phone bills, etc.) or certified copy by certified public accountants, lawyers, and notaries (c) Identity Verification (a photo of the Director(s) and Shareholder(s) holding his/her IC/Passport) For Corporate Entities: (a) Certificate of Incorporation/Certificate of Incumbency (b) Memorandum and Articles of Association (c) Board resolution of Corporate Representative (d) Ultimate Beneficial Owner Information (e) Name of authorised corporate representative (f) Contact No of representative (g) Email Address of representative
  • How long does the incorporation process take?
    If all of the necessary documents are in order, the application process in Singapore generally takes 1-2 working days. However, if there are any faults or errors with the application, or if extra information is required, the processing time may be extended. It's important to note that the timetable for incorporation might also vary depending on the type of company being formed and the specific procedures involved. Due to additional regulatory procedures, incorporating a corporation with foreign shareholders or directors may take longer. To guarantee a smooth and effective procedure, it is advised that you get professional advice from our incorporation experts.
  • How do I incorporate as a foreigner in Singapore?
    Embarking on the incorporation journey in Singapore as a foreigner is remarkably straightforward. To establish your company, you'll need to: (a) Choose a name, entity type (b) Choose at least one business activity (c) Appoint a nominee director (d) Secure a local secretary (e) Decide on a local address (f) Allocate company shares Simplify this process with our all-inclusive Foreigner Incorporation Package, tailored to fulfill all your incorporation requisites. Our dedicated experts are ready to assist you at every step. Connect with us today to ensure a seamless and customized incorporation experience!
  • What are the key requirements for foreigners to set up a new business in Singapore?
    At least 1 shareholder At least $1 paid up capital (any currency) Local company secretary Singapore-based director A registered address in Singapore Simplify this entire procedure by opting for our Foreigner Incorporation Package, offering a comprehensive solution covering all necessary components. Connect with our seasoned experts now for a hassle-free incorporation experience tailored to your needs!
  • What happens after incorporating a business?
    After incorporation in Singapore, the company is considered a legal entity and can start conducting business activities and hiring employees. You will receive a Certificate of Incorporation. ACRA will send you an email verifying your company's registration. This is your official Singapore Company Incorporation Certificate, which includes your company registration number. If you wish to get a hard copy of the certificate, you can submit a S$50 online request to ACRA. You receive a Business Profile (”Bizfile”). ACRA will also give a free business profile for your new entity. The business profile serves as the company's identity card. You are able to open a corporate bank account. After successfully registering your Business in Singapore, you will be able to create a corporate bank account with any of Singapore's banks.
  • What are the legal requirements for operating a company in Singapore?
    Here are some of the key legal compliances that businesses in Singapore need to follow post-incorporation: Business Licenses: Some companies, depending on their nature, may require particular licenses and permissions before they may operate in Singapore. These licenses and permissions are available from the appropriate government agencies. Employment Laws: Businesses in Singapore must adhere to a number of employment regulations, including the Employment Act, the Work Injury Compensation Act, and the Retirement and Re-employment Act. Taxation: Businesses in Singapore must register for and comply with several tax rules, including the Goods and Services Tax (GST), Corporate Income Tax, and Withholding Tax. Data Protection: Businesses in Singapore must guarantee that the personal data of their customers and employees is collected, used, and disclosed in line with the Personal Data Protection Act (PDPA). Immigration: Companies that engage foreign personnel in Singapore must follow the Work Pass framework and guarantee that their staff have the necessary work permits and visas. Intellectual Property: Businesses in Singapore should be aware of the different intellectual property regulations, such as trademarks, patents, and copyrights, and take the necessary precautions to protect their intellectual property.
bottom of page