As a wealth management hub in Asia, Singapore is the preferred location for high net worth families to set up family offices in Asia Pacific due to its stable political environment, transparent legal system, quality financial ecosystem and tax incentives.
Family Office (FO) is designed to provide a full range of services such as asset management, wealth inheritance, tax planning and family governance for a single family or multiple families.
🌟 Main functions of the Family Office
✅ Wealth Preservation and Enhancement
✅ Global Asset Allocation and Investment Management
✅ Legal, tax, compliance planning
✅ Family Legacy and Charity Management
✅ Family education and life support
Family offices can be categorized into:
Single Family Office (SFO): Serves only a single family
Multi-Family Office (MFO): Serving multiple families
🌟 Comparison of Family Office Structure Types in Singapore
| build | dominance | caveat |
|---|---|---|
| No holding company structure | Easy to set up, lower cost; 13O tax incentives apply; direct registration of shareholder information | Subject to personal privacy disclosure; earnings distributions need to go to the fund company first |
| Holding company structure (e.g. BVI, Cayman) | Privacy can be enhanced by hiding the ultimate beneficiary information | High structuring and maintenance costs; possible loss of tax incentives if the holding company is a Singapore resident company |
| trustee structure | Helps with succession planning, wealth segregation | Increased management complexity and costs; ongoing compliance management required |
🌟 Major Tax Incentives for Family Offices in Singapore
| Tax provisions | fundamental requirement | dominance |
|---|---|---|
| 13O (onshore fund exemption) | ≥ S$20 million AUM; minimum annual operating expenses; 2 investment professionals (at least 1 Singapore resident) | Tax exemption for investment income received by Singapore tax resident companies |
| 13U (Advancement Fund Exemption) | ≥ S$50 million AUM; 3 investment professionals (at least 1 non-family member) | Broader investment scope and flexible structure |
| FSI-FM (Fund Management Concession) | AUM ≥ S$250 million; ≥ 3 investment professionals | Management Company Qualifying Income Tax Rate Reduced to 10% |
*All structures are subject to MAS regulatory exemption or licensing requirements for family offices.
🌟 Family Office 13O Establishment Process Sketch
📌 Stage 1: Architecture design and data preparation
Determine the type of structure and shareholder structure
Collection of background information, investment plans, business plans
Legal opinions, management agreements, organizational charts
📌 Stage 2: Company registration and account opening
Registered fund companies, management companies
Open a bank account with a minimum of S$20 million
📌 Stage 3: Tax Incentive Application
Submission of 13O application to MAS
Approval cycle about 3-6 months
📌 Stage 4: EP Application and Operational Launch
Submission of Investor Work Permit (EP) Application
Launching Investment and Compliance Operations
🌟 Core Benefits of a Family Office in Singapore
✅ Significant tax benefits: Qualifying investment income is exempt from Singapore Income Tax and no capital gains tax
✅ Wealth protection and transmission: Flexible trust and holding structure to support multi-generational wealth planning
✅ Privacy: Enhanced information protection by optional holding companies
✅ Policy support: The Government promotes the development of family offices to encourage investment and employment.
✅ migration pathway: GIP Global Investor Program in combination with family office investments, eligible to apply for PR
🌟 Compliance Requirements for Family Office Operations in Singapore
Annual Financial and Tax Returns
Local operating expenses and employment targets met
Ongoing asset management size meets incentive requirements
Family offices are not allowed to solicit clients from outside the family and serve only the family's own assets
🌟 We can provide you with
🎯 Family office architecture program design
🎯 13O/13U Tax Incentive Application
🎯 Company registration, EP application, compliance operation support
🎯 Asset Allocation, Investment Solutions Advisor
🎯 Integrated family legacy, philanthropy, legal, and tax services
💡 concluding remarks
A Singapore Family Office is not only an important platform for global high net worth families to preserve and increase their wealth, but also a cornerstone for the long-term development of the family. Designing a reasonable structure, ensuring tax compliance and sound operations are key to safeguarding the security and sustainable development of family wealth.
