Setting up a Family Office in Singapore

Singapore is considered to be one of the more prominent financial centre in South-East Asia due to its proximity to local and global private banks, investment banks and other financial service provider. It is also renowned for its stable governance and pro-business environment, as such, it has gained in popularity as a base for many high-net worth families to manage their assets and investments globally.

The Singapore Government have put in place tax incentives schemes for funds managed by family offices for both offshore and onshore vehicles to bolster Singapore’s appeal as a leading wealth management hub. These schemes are introduced under sections 13R and 13X of the Income Tax Act (“ITA”).

 

What is a family office?

Typically, a single-family office conducts various activities to facilitate the day-to-day management of a family’s assets. The activities involved are diverse and would include tax filing, the management of the family’s investments and consolidation of the family’s accounts. A simplified depiction of a typical ownership structure of a family office may be seen in the diagram below: