The Monetary Authority of Singapore (MAS) oversees the regulatory framework for family offices. While family offices do not demand a specific license from MAS when they serve only related members of the family, they have to adhere to certain guidelines and ensure proper structuring. For an SFO, the household must create a legal entity, typically a private limited company, to operate the office. The entity must stick to local company laws, including registration with the Accounting and Corporate Regulatory Authority (ACRA) and compliance with the Companies Act.The MAS provides a broad definition of family, typically including the members of the family, their spouses, and direct descendants. The family office must demonstrate that it serves only these related parties. For tax incentive purposes, particularly underneath the Enhanced-Tier Fund Scheme (13X) or the Financial Sector Incentive – Fund Management Scheme (13R), the household office must meet minimum asset under management (AUM) requirements, typically starting at SGD 50 million.
Singapore offers several tax incentives to attract family offices. The Enhanced-Tier Fund Scheme (13X) and the Financial Sector Incentive – Fund Management Scheme (13R) are particularly relevant. These schemes provide tax exemptions on qualifying income from designated investments, susceptible to meeting specific criteria, such as for example minimum spending requirements on local business costs and hiring at the very least three investment professionals. These incentives make Singapore a stylish hub for family wealth management.Establishing a household office in Singapore involves setting up the appropriate legal structure. Most families opt for a private limited company due to its flexibility and limited liability protections. The business must have at least one director who is ordinarily resident in Singapore, and it must maintain a registered office address in the country. Additionally, the family office must draft a clear charter or mandate outlining its governance structure, operational guidelines, and investment strategy.
A successful family office requires a skilled team to handle its operations. Singapore's pool of financial professionals Singapore family office requirements, including investment advisors, tax experts, and legal consultants, helps it be a great position for staffing a family office. Any office must employ at the least three investment professionals to qualify for tax incentives. These professionals should have relevant experience and qualifications to handle the family's wealth effectively and comply with regulatory requirements.Compliance with local regulations and ongoing reporting obligations is critical for maintaining the operational integrity of a family group office in Singapore. Work must stick to anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, conduct regular audits, and submit annual financial statements to ACRA. Additionally, family offices benefiting from tax incentives under the 13X and 13R schemes must meet annual reporting requirements to MAS, demonstrating continued compliance with the scheme's conditions.
Given the complexity of establishing and managing a household office, engaging professional advisors is crucial. Legal advisors can assist with structuring the office and ensuring compliance with regulatory requirements, while tax advisors can optimize the family's tax position and navigate the applying process for tax incentives. Investment advisors will help develop and execute the family's investment strategy, aligning making use of their financial goals and risk tolerance. These professionals provide invaluable support, ensuring the family office operates efficiently and effectively.Establishing a family group office in Singapore offers numerous benefits, from tax incentives to gain access to to a highly skilled workforce. However, it needs careful planning and adherence to regulatory and operational requirements. By understanding the legal framework, setting up the appropriate structure, and engaging experienced professionals, families can successfully establish a family office in Singapore, ensuring the effective management of these wealth and securing their financial legacy for future generations.
English
Arabic
Français
Español
Português
Türkçe
Dutch
Italiano
Russian
Romaian