Singapore Family Office

Singapore is the hub of economic opportunities and stability

Singapore, a member state of the Commonwealth of Nations, is considered to be one of the most reputable and stable countries in Asia because it has a strong backbone and infrastructure to accommodate people. In the year 1965, Singapore celebrated independence from the British and was officially named The Republic of Singapore.

Singapore’s strongest asset is its corruption-less Economy. Currently, Singapore’s currency (S$) holds extreme worth as it plays a huge role in international trading and financial services around the world.

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    Financial Infrastructure

    For the recruitment of the right candidates for a family office, Singapore emphasizes the qualification of applying candidates. Being a financially stable country, Singapore is sufficient in investment banks, high-quality service providers, or local and global private banks. When a family office is concerned, a well-organized and well-governed jurisdiction makes a huge impact on the system.

    For taxation, Singapore follows a territorial tax system. This system refers to the tax which should only be paid when the source of income is Singapore-based. Whether the tax is for personal income or corporate, with modest tax rates, even wealthy families residing in Singapore can avail best legal structures and services for the facilitation of their assets. Furthermore, to avoid any double taxations, the company has already signed treaties.

    The laws about the legal system of Singapore are considered to be extremely reliable. Based on the English law system, different parts of this system act differently. The judge-made part is only for local judges and their decisions while other parts are statutory. For legal advice, only a lawyer belonging to a reputable law firm will be accepted.

    Singapore is widely known for its extravagant infrastructure making it more convenient for people to get familiar with.

    Singapore Family Office Basic Structure

    There is a wide range of structures on which your family office can rely on. From private investment companies to investment funds, limited partnership structures, as well as Singapore companies, the country’s laws, have evidently made things easier for your family.

    A private limited company refers to a single-family office as it plays the role of a coordinator for the assets belonging to other families. A single-family office does have its own assets to invest therefore it acts as the financial advisor or investment manager of the family.

    Once this office structure becomes steadier in terms of ownership from the family members or companies that are held by these members either directly or indirectly, only then it has the power to apply to MAS to avail exemption in various financial areas that lie within the frame of Securities and Future Act. Other than this, if also likely for a single office to get licenses from the authorities under these Acts

    Singapore Services for Family Office

    Singapore offers the best family office services when it comes to managing the assets of
    clients. Among all, Asian families are more competent and require someone to manage their
    assets and give productive solutions for their investment planning.

    Economic Development Board Global Investor Programme for the Establishment of Family Offices

    There is a special program called Global Investor Programme (GIP) offered by the Economic Development Development Board (EDB) of Singapore which offers special services to the families who wish to avail permanent Residency status along with ownership of a family office.

    As per the GIP Family Office route, there are a few requirements that a family should fulfill. Firstly, a family wishing for a new family office must have an investment of $2,500,000 with at least 5 years of experience in entrepreneurship. In addition to that, S$200 million or less must be given to your new family office as these assets will account for investment purposes only. According to the program, out of S$200 million, S$50 million will be placed in a Singapore bank. For more details regarding the program, head over to our page ‘residence in Singapore’.

    Section 13X Tax Exemption

    To add more sustainability and flexibility to the system, Singapore has embedded tax exemptions in its system so a family could easily manage their assets while complying with taxation rules. To qualify for these exemptions, the family office investment fund (a private investment fund) first needs to apply to the (MAS) Monetary Authority of Singapore. This step will approve your qualification under section 13X** of the Income Tax Act (the Singapore Enhanced Tier Fund Tax Exemption Scheme)***.

    Following requirements must be fulfilled to qualify under section 13X of the Income Tax Act:

    • Must have a minimum of S$50 million in family fund
    • The fund manager must hire investment professionals residing in Singapore
    • The annual local expenditure on business should be $200,000

    To work for a family office as investment professionals, the family member(s) must acquire a Singapore employment pass. Unless the criteria for at least 3 years of stay and contribution to the economy of Singapore is not fulfilled, you cannot qualify for the status of Singapore PR.

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