Setting up a Family Office in Singapore

Interest in setting up family offices in Singapore has soared in recent years, in light of global uncertainty and geopolitical tensions. The number of family offices in Singapore has been growing since 2017, and the pandemic year of 2020 saw an almost 100% increase from 400 within the year. Singapore’s reputation as safe haven for wealth has drawn many to its shores, and the newly emerging family office industry is becoming increasingly robust and professional.

There are two types of family offices: the Single Family Office (SFO) and Multi Family Office (MFO). SFOs are dedicated to managing the wealth of a single family, while MFOs pool wealth from multiple families for investment. While MFOs can be less expensive, SFOs are tailored to your preferences and cater solely to the personal needs of your family.

Xignam offers services in setting up a Single Family Office (SFO) in Singapore. There are multiple tax exemption schemes that Singapore offers which apply to the Family Office, namely: the Enhanced-Tier Fund Exemption Scheme, Resident Fund Exemption Scheme and the Offshore Fund Exemption. Our experienced and knowledgeable consultants will be able to advise you on these tax exemption schemes in detail. We may apply for these tax exemptions in setting up your Family Office, depending on whether your SFO meets the criteria for each scheme.

In setting up a family office, you may want to consider a few points, such as: the structure of the family office vehicle, how you may utilise tax incentives for certain investments, the nature of the assets and investments held by each entity, and the family’s respective investment objectives and strategies. You may also be considering the residence status in Singapore of the relevant family members, whether any long-term passes are required or desired by any family member or employee of the family office, et cetera. These are only a few of the considerations one has in setting up a family office in Singapore, and there may be additional considerations depending on your family’s structure. In order to make your SFO journey as smooth as possible, our consultants will be with you all of the way and advise your based on your family’s specific needs and preferences.

While setting up a family office may seem complicated or tedious, it is worth the effort to invest in Singapore. Not only has the nation seen an increasingly large influx of Ultra High Net Worth Individuals (UHNWI) in recent years, it has also been a stable and consistent player in the international financial world.

If you are interested in setting up a family office in Singapore, our consultants at Xignam are always ready to aid you and provide a smooth journey to setting up a family office here.

Below is a short list of information you may want to prepare in advance before contacting us, so that we will be better able to help you:

• Shareholding structure of the family office
• Photocopies of shareholders’ and directors’ identity documents/passports
• Proof of address of shareholders and directors (to set up your bank account)
• Business Proposal
• Proof for your source of funds

Setting up a family office in Singapore will take approximately 12 months, as there are many approval processes to go through before we can set up the family office. Our consultants will be able to inform you of the detailed timeline and the specific process that we have developed in the establishment of the family office.

We hope that you will consider setting up a family office in Singapore. As one of the world’s major financial hubs, it is not only an ideal destination for investment and business, but also continues to innovate and push the limits of what investment means. We believe that investing in Singapore provides a safe and stable environment for your wealth, and are always ready to receive you.