Managing wealth across generations is never simple. Between shifting markets, legal complexity, and family dynamics, even the most financially savvy individuals can feel overwhelmed trying to ensure their legacy remains intact.
That’s why more ultra-wealthy families are turning to a family office in Singapore—a private structure designed to handle everything from investment management to estate planning. Based on data from the Monetary Authority of Singapore, the number of single family offices grew from 400 in 2020 to 1,650 by mid-2024, with continued strong growth expected through the year.
If you’re looking to structure long-term wealth, minimise risk, and streamline family governance, this guide will walk you through what a family office is, why Singapore is the ideal location, and how to set one up the right way.
What Is A Family Office?
A family office is a private entity set up to manage the financial and personal affairs of a wealthy family. Its primary role is to preserve and grow family wealth across generations.
It handles everything from investments and tax planning to estate structuring and philanthropy. Some even provide lifestyle services, like managing properties or handling travel logistics.
Family offices can serve a single family (SFO) or multiple families (MFO), depending on their structure and goals. They are especially useful for coordinating complex financial portfolios and ensuring smooth succession planning.
At its core, a family office helps maintain control, clarity, and continuity over wealth — not just for the present, but for future generations.
Types Of Family Offices
Single Family Offices (SFOs)
SFOs handle the affairs of just one family and operate under their full ownership and direction. These offices provide highly personalized and comprehensive financial services, tailoring their approach to the family’s specific goals, values, and long-term aspirations. SFOs offer complete control and customization, allowing families to have a team of advisors solely focused on their unique needs.
The main advantages of an SFO include:
- Highly customized service and strategies
- Enhanced privacy and confidentiality
- Deep understanding of the family’s specific requirements
However, it’s important to note that establishing and maintaining an SFO can be costly, making it more suitable for families with substantial wealth, typically exceeding $200 million.
Multi-Family Offices (MFOs)
By contrast, MFOs provide support to multiple families, offering shared services under one firm. This model leverages economies of scale to provide comprehensive financial services at a more affordable cost. MFOs are an excellent option for families seeking professional wealth management without the expense of establishing their own office.
Key benefits of MFOs include:
- Cost-sharing advantages
- Access to a diverse team of financial specialists
- Broader investment opportunities and portfolio diversification
MFOs can offer a wider range of services due to their larger scale, making them an attractive option for families with fewer financial complexities or a lower asset base.
To make the difference easier to understand, here’s a quick comparison:
| Category | Single Family Office (SFO) |
Multi-Family Office (MFO)
|
|---|---|---|
| Who It Serves | One family only |
Several families
|
| Customisation | Fully tailored to one family’s needs |
Standardised across clients
|
| Operating Costs | Typically higher due to exclusivity |
Lower due to cost-sharing
|
| Privacy & Control | Maximum privacy and decision authority |
Shared control, less personalised oversight
|
| Licensing in Singapore | Often exempt from fund management licences |
Usually requires formal MAS licensing
|
When deciding between an SFO and an MFO for your family office in Singapore, consider factors such as:
- The complexity of your family’s financial needs
- The level of personalization required
- Your available resources and cost considerations
- The desire for control versus the benefits of shared expertise
Ultimately, the choice between an SFO and MFO depends on your family’s unique priorities and long-term wealth management strategy. By carefully evaluating these factors, you can make an informed decision on the best structure for setting up a family office in Singapore that aligns with your goals and resources.
Core Functions And Services A Family Office In Singapore
A family office in Singapore offers a centralised way to manage wealth, investments, and legacy planning. It brings all financial responsibilities under one roof, making things more efficient and less fragmented for families with significant assets.
Rather than managing finances individually, family members can rely on a coordinated system led by professionals in legal, financial, and administrative roles. This setup helps preserve wealth, reduce duplication, and maintain a long-term financial strategy.
Below are the core functions and services typically handled by a family office in Singapore:
- Investment Management: Oversees the family’s investment portfolio, including public equities, real estate, private equity, and alternative assets. Focuses on building long-term value.
- Financial Planning: Provides advice on tax, insurance, budgeting, and cash flow. Helps ensure that the family’s financial goals are met over generations.
- Legal and Compliance: Manages risk, ensures regulatory compliance, and oversees legal matters related to wealth and asset protection.
- Family Governance: Develops structures like family constitutions and councils to guide decision-making and support smooth wealth transfer.
- Philanthropy Advisory: Supports charitable giving through foundations, trusts, or direct donations. Aligns giving with the family’s values.
- Administration and Lifestyle Services: Handles everyday support such as secretarial tasks, travel planning, property management, and even education coordination for younger members.
By handling both financial and non-financial matters, a family office in Singapore makes wealth management simpler, more strategic, and more unified for generations to come.
Why Choose Singapore For Your Family Office?
Strong Regulatory And Legal Environment
Singapore has clear, reliable laws and a reputation for transparency.
The Monetary Authority of Singapore (MAS) enforces clear, consistent rules for fund management. Family offices also benefit from structured support through initiatives by MAS and the Economic Development Board (EDB), helping them stay compliant while operating efficiently.
Attractive Tax Incentives
Family offices benefit from generous tax exemptions. These include:
- Section 13O: Tax exemption for locally managed onshore funds
- Section 13U: Exemption for larger, more complex funds with higher assets under management
- Section 13D: Offshore fund tax relief for global investors
- FSI-FM Scheme: Reduced corporate tax rate of 10% for qualified fund managers
- Philanthropy Tax Incentive Scheme: Up to 100% tax deduction for approved overseas donations via local intermediaries
This tax efficiency allows family offices in Singapore to retain and grow wealth with minimal erosion.
Licensing Flexibility
Single family offices can apply for exemptions from standard fund management licensing. This helps lower barriers to entry while maintaining operational oversight.
Political And Economic Stability
Singapore has low corruption, stable governance, and a strong legal system. These factors make it a secure environment to manage sensitive financial assets and multi-generational plans.
Its free-market economy and access to global financial institutions also support broad investment flexibility.
Strong Financial Infrastructure
Home to global banks, venture capital firms, and asset managers, Singapore has a deep network of financial institutions. This makes setting up and scaling a family office smoother.
Supportive Government And Ecosystem
Initiatives like the Family Office Discovery Series help newcomers integrate into Singapore’s family office network. Programs also cover risk management, philanthropy advisory, and upskilling investment professionals.
Government support is ongoing, ensuring family offices receive the resources needed for long-term success.
Access To Global Markets
Singapore’s location in Southeast Asia gives direct access to regional and international markets. Families managing wealth across Asia-Pacific benefit from this strategic position.
The country has over 100 trade and tax treaties, including agreements with Malaysia, China, India, and ASEAN partners. These deals help reduce tax burdens and simplify cross-border investing.
Skilled Workforce And Infrastructure
Singapore ranks highly for talent competitiveness, especially in finance and asset management. Institutions like the Institute of Banking & Finance support training for professionals in investment and philanthropy advisory.
This makes it easier to hire experienced staff and build a competent, future-ready family office team.
Strategic Asia-Pacific Location
Located at the heart of Southeast Asia, Singapore provides easy access to regional markets like Indonesia, Malaysia, and Vietnam. It’s a strong base for managing diverse portfolios across borders.
How To Set Up A Family Office In Singapore
1. Define Objectives And Scope
Identify the purpose of your family office. Is it focused on investments, estate planning, philanthropy, or a mix of all three?
Decide between setting up a Single Family Office (SFO) for one family or a Multi-Family Office (MFO) that serves several. Your choice will influence the structure, licensing, and level of customisation.
2. Choose A Legal Structure
Form a legal corporation with the Accounting and Corporate Regulatory Authority (ACRA). Most family offices are structured as private limited companies, though trusts are also an option for estate and asset protection.
If setting up an SFO, a common structure includes a holding company that owns both the family office and the investment entity. This setup may qualify for licensing exemptions under MAS regulations.
3. Register And Apply For Licences (If Needed)
Some SFOs may be exempt from licensing under Singapore’s Capital Markets Services (CMS) framework. However, MFOs or more complex structures may require registration with MAS.
Tax incentives like Sections 13O and 13U can be applied for once the entity is registered. These schemes offer income tax exemptions for qualifying funds managed by the family office.
| Task | Notes |
| Register with ACRA | Required for incorporation |
| Apply for MAS exemptions | Only applicable to certain SFO structures |
| Submit tax incentive forms | Processing times currently range from 3–18 months |
4. Build The Team And Set Up Operations
Hire professionals in investment, legal, tax, and compliance roles. At least one team member must be unrelated to the family to qualify for tax incentives.
Secure office space, set up IT systems, and onboard external service providers such as lawyers and accountants. Ensure all reporting and compliance systems are in place from the start.
5. Develop Policies And Investment Plans
Draft governance rules to manage how decisions are made, especially if multiple family members are involved. Define roles, responsibilities, and succession plans.
Build a long-term investment strategy that aligns with the family’s risk tolerance and goals. Include guidelines for monitoring performance and adjusting plans as needed.
How Do You Qualify For A Family Office In Singapore?
Setting up a family office in Singapore requires meeting specific criteria to qualify for the various benefits and incentives offered by the government. Whether you’re considering a single family office (SFO) or a multi-family office (MFO), understanding these requirements is crucial for a successful establishment.
Minimum Assets Under Management (AUM)
To qualify for a family office in Singapore, you need to meet certain financial thresholds. The minimum AUM requirements are:
- S$20 million for the Section 13O tax exemption scheme
- S$50 million for the Section 13U tax exemption scheme
These figures underscore the substantial wealth management needs that family offices typically address.
Employment Requirements
Your family office must also employ a minimum number of investment professionals:
- At least two professionals for Section 13O
- At least three professionals for Section 13U
At least one of these professionals must not be a family member, ensuring a level of external expertise and objectivity.
Regulatory Approval And Compliance
To set up a family office in Singapore, you must obtain approval from the Monetary Authority of Singapore (MAS). This involves:
- Getting initial approval for the setup
- Securing approval for any subsequent changes in investment strategy
- Maintaining a private banking account with an MAS-licensed financial institution
While SFOs managing assets for a single family generally don’t require a license, MFOs typically need a Capital Markets Services (CMS) License under Singapore’s Securities and Futures Act.
Local Business Spending
Qualifying family offices must meet local business spending requirements. These range from S$200,000 to S$1 million, depending on the AUM. This requirement ensures that family offices contribute to the local economy while benefiting from Singapore’s favorable business environment.
By meeting these qualifications, your family office in Singapore can take advantage of the country’s robust financial infrastructure, strategic location, and attractive tax incentives. Remember, the specific requirements may vary based on your family office structure and objectives, so consulting with local experts is advisable for tailored guidance.
Common Pitfalls In Establishing A Family Office
1. Lack Of Regulatory Awareness
Singapore has specific rules under acts like the Financial Advisers Act (FAA) and Securities and Futures Act (SFA). Overlooking these can lead to penalties and delays.
Regulatory requirements may evolve, so staying current is essential. Relying solely on outdated templates or informal advice can expose the office to unnecessary risk.
2. Weak Compliance Processes
Failing to meet anti-money laundering (AML) standards or tax reporting duties can damage credibility. Every office should build compliance checks into its daily operations.
This includes understanding obligations under frameworks like the Common Reporting Standard (CRS) and preparing accurate financial records for regulators.
3. Poor Risk Management
Market shifts can heavily impact portfolios with concentrated wealth. Without a clear investment strategy and risk mitigation plan, the family office may face avoidable losses.
It’s important to diversify assets, stress-test scenarios, and set realistic expectations across generations.
4. Underestimating Operational Complexity
Running a family office involves more than managing money. Hiring, legal documentation, compliance, and vendor management all require planning and expertise.
Ignoring these can result in disorganised operations and strained family dynamics.
5. Inadequate Cybersecurity
Digital threats pose a growing risk. Sensitive financial data must be protected through encryption, secure networks, and regular audits.
Complying with Singapore’s Personal Data Protection Act (PDPA) is not optional. Even a small data breach can cause serious reputational harm.
6. Overlooking Succession And Governance
Many family offices are set up without clear rules for decision-making or succession. This can cause internal conflict or leave the next generation unprepared.
A basic governance framework, even if simple, helps maintain consistency and family alignment over time.
Strengthening Compliance And Governance In Your Family Office
1. Build Clear Governance Structures
Set up clear policies, procedures, and reporting lines. This keeps operations aligned with legal requirements and reduces internal confusion.
Assign roles for oversight and decision-making. Formalising these processes helps maintain consistency, especially during succession transitions.
2. Stay On Top Of Regulatory Compliance
Register your entity properly and apply for tax incentives if eligible. Submit annual tax filings to the Inland Revenue Authority of Singapore (IRAS).
Family offices must also fulfil obligations under the Common Reporting Standard (CRS). This involves submitting relevant account details to IRAS to support global tax cooperation efforts.
| Compliance Task | What It Involves |
| Tax filings | Submit yearly returns to IRAS |
| CRS reporting | Declare account data for global tax checks |
| Certificate of Residence | Needed for tax treaty benefits |
3. Follow Anti-Money Laundering (AML) Rules
Family offices are expected to meet strict due diligence standards. These include background checks on owners, related entities, and fund structures.
New requirements may include keeping records of assets under management, notifying MAS at launch, and maintaining ties with an MAS-regulated bank. This helps ensure that all operations are monitored for compliance.
4. Perform Regular Risk Reviews
Schedule internal risk assessments to check for financial, legal, and operational vulnerabilities. This allows your office to fix problems early and avoid reputational damage.
Use external advisors or consultants when needed. Independent reviews offer an objective view and help you stay ahead of any changes in regulations.
5. Leverage Technology For Efficiency
Use compliance tools to automate regulatory tracking, flag risks, and file reports on time. This cuts down on human error and streamlines operations.
For example, specialised software can help manage tax filings, AML checks, and internal audits—freeing up time for strategic decisions.
6. Invest In Training And Professional Development
Keep your staff informed of rule changes and reporting obligations. Ongoing training ensures your team can act quickly when laws shift.
Encourage participation in industry forums or learning programmes offered by the Wealth Management Institute and MAS.
Conclusion About Family Office In Singapore
Setting up a family office in Singapore offers long-term financial stability, tax efficiency, and control—but it also comes with legal, regulatory, and operational challenges. With the right structure, expert advice, and ongoing compliance, your family office can serve not just as a financial engine, but as a tool for protecting and growing wealth across generations.
Tembusu Law is here to guide you through every legal step. With experienced family and corporate lawyers in Singapore, we offer practical advice and solid legal support tailored to your unique goals. Whether you’re navigating regulatory requirements or building a long-term succession plan, we’re ready to help you move forward with confidence.
Contact us today for a free consultation.
Frequently Asked Questions About Family Office In Singapore
What Is A Family Office?
A family office is a private entity that manages the financial, legal, and personal affairs of wealthy families, often across generations.
What Is The Difference Between A Single Family Office And A Multi-Family Office?
A Single Family Office (SFO) serves one family exclusively, while a Multi-Family Office (MFO) supports multiple unrelated families using shared resources.
Do I Need A Licence To Set Up A Family Office In Singapore?
Most SFOs may qualify for licensing exemptions, but MFOs and complex structures usually need approval from the Monetary Authority of Singapore (MAS).
What Are The Tax Benefits Of Setting Up A Family Office In Singapore?
Qualified family offices may enjoy tax exemptions under schemes like 13O and 13U for income earned from designated investments.
How Long Does It Take To Set Up A Family Office In Singapore?
The setup can take several months, especially when applying for tax incentives or dealing with regulatory approvals.
Is Singapore A Good Place To Base A Family Office?
Yes, Singapore offers political stability, a strong legal system, tax advantages, and a well-developed financial ecosystem.
What Services Does A Family Office Typically Provide?
Services include investment management, estate planning, tax advisory, philanthropy, and lifestyle or administrative support.
Can Foreigners Set Up A Family Office In Singapore?
Yes, foreign individuals can establish a family office in Singapore, subject to compliance with local regulations and tax rules.
What Is The Minimum Asset Requirement To Set Up A Family Office?
For tax incentive eligibility, MAS typically requires SFOs to manage assets of at least SGD 10 million, scaling to SGD 20 million within two years.
How Do I Start Setting Up A Family Office?
Start by defining your goals, choosing a legal structure, and engaging legal and financial professionals to guide setup and compliance.
