Singapore Family Office

Singapore is the hub of economic opportunities and stability

Singapore, a member state of the Commonwealth of Nations, is renowned for its esteemed reputation and stability in Asia. Boasting a robust backbone and top-notch infrastructure, the city-state stands as a prime example of efficient accommodation. The year 1965 marked a significant milestone for Singapore, as it celebrated its independence from British rule and officially became known as The Republic of Singapore.

One of Singapore's greatest attributes is its incorruptible economy. The country prides itself on maintaining a transparent and corruption-free business environment, a feat that has propelled its status both regionally and globally. The Singaporean currency, known as the Singapore Dollar (S$), holds immense value, serving as a vital player in international trade and financial services across the globe.

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    Singapore Family Office Basic Structure

    There is a diverse array of structures available to support the operations of your family office. Whether through private investment entities, investment funds, limited partnership setups, or Singapore-based companies, the regulatory framework in the country has significantly streamlined processes for family offices.

    A private limited company often serves as the focal point for a single-family office, acting as the central coordinator for managing the assets of multiple families. While the single-family office may have its own investments, its primary function lies in providing financial advice and investment management services to the family it represents.

    As the ownership structure of the family office stabilizes, either through direct family members or companies controlled by them, it gains eligibility to seek exemptions under the Securities and Future Act regulations by applying to the Monetary Authority of Singapore (MAS). Additionally, single-family offices may also opt to obtain licenses from the relevant authorities under these Acts to further solidify their operations within the financial sector.

    Financial Infrastructure

    When it comes to recruiting the right candidates for a family office, Singapore places a strong emphasis on applicants' qualifications and credentials. As a financially stable country, Singapore is home to a plethora of investment banks, high-quality service providers, and local and global private banks. A well-established legal and regulatory framework is critical for family offices to operate seamlessly, making Singapore an ideal choice for families seeking an organized and well-governed jurisdiction.

    Singapore follows a territorial tax system, which means that taxes are only levied on income that originates from Singapore. Whether for personal income or corporate gains, the country's modest tax rates make it an attractive destination for even wealthy families to set up legal structures and take advantage of the available services to manage their assets. To avoid double taxation, Singapore has established several treaties with other countries.

    The legal system in Singapore is known for its reliability and operates based on the English law system. The judge-made part of the system is reserved for local judges and their decisions, while other aspects are statutory. To seek legal advice, only lawyers from reputable law firms are accepted.

    Singapore's modern infrastructure is widely regarded as impressive, providing a convenient and efficient environment for families to navigate and operate within.

    Singapore Services for Family Office

    Singapore is renowned for providing top-notch family office services to effectively manage the assets of clients. Amongst these clients, Asian families stand out as particularly knowledgeable and in need of expert assistance to oversee their assets and devise successful investment strategies.

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

    Singapore's Economic Development Development Board (EDB) offers a special program called the Global Investor Programme (GIP), which provides exclusive services to families seeking permanent residency status and ownership of a family office.

    Under the GIP Family Office route, there are certain requirements that families must meet. Firstly, families looking to establish a new family office must have a minimum investment of $2,500,000 and at least five years of entrepreneurial experience. Furthermore, up to S$200 million of assets can be allocated to the family office for investment purposes. As part of the program, S$50 million must be deposited into a Singapore bank. For further information on this program, please visit our 'Residence in Singapore' page.

    Section 13X Tax Exemption

    In order to enhance sustainability and flexibility in the system, Singapore has incorporated tax exemptions to enable families to effectively manage their assets while adhering to taxation regulations. To be eligible for these exemptions, the family office investment fund, which is a private investment fund, must first apply to the Monetary Authority of Singapore (MAS). This application process will determine your qualification under section 13X of the Income Tax Act, known as the Singapore Enhanced Tier Fund Tax Exemption Scheme.

    To meet the requirements under section 13X of the Income Tax Act, the following criteria must be satisfied:

    • The family fund must have a minimum of S$50 million.

    • The fund manager must employ investment professionals who are Singapore residents.

    • Annual local business expenditures should amount to at least $200,000.

    To work as investment professionals for a family office, family members must obtain a Singapore employment pass. It is important to note that without meeting the criteria of residing in Singapore for at least three years and contributing to the nation's economy, one cannot qualify for Singapore permanent residency status.

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