Singapore has firmly established itself as Asia’s leading hub for family offices. With more than 2,000 single-family offices now operating from the Lion City — and most of them backed by ultra-high-net-worth families who relocated their wealth structures from Hong Kong, mainland China, India, and beyond — Singapore offers a uniquely compelling combination of political stability, regulatory transparency, deep banking infrastructure, talent, and tax incentives.
Setting up a single-family office (SFO) here, however, is no longer the lightweight exercise it once was. The Monetary Authority of Singapore (MAS) has progressively tightened the qualifying conditions under the Section 13O and Section 13U tax incentive schemes, raising minimum AUM, mandating local hiring, and introducing local investment quotas. This article walks through everything you need to know to set up a Singapore family office in 2026 — eligibility, structure, tax incentives, costs, and a practical step-by-step roadmap.
If you would like a private discussion on whether Singapore is right for your family wealth structure, please reach out to Raffles Corporate Services.
What Is a Singapore Family Office?
A family office is a private wealth management entity that serves the financial, investment, succession, philanthropic, and lifestyle needs of one ultra-wealthy family (a “single-family office”, or SFO) or several families (a “multi-family office”, or MFO). In Singapore, the SFO model is the dominant structure for in-bound HNW relocations.
The typical Singapore SFO consists of two related entities. First, a fund vehicle (commonly a Singapore-incorporated company or, for larger families, a Variable Capital Company) which holds the family’s investment portfolio. Second, a fund management company (FMC) which manages the fund and is exempt from the MAS Capital Markets Services licence under the Securities and Futures Act 2001 because it serves only related parties.
To make this structure tax-efficient, families almost always seek MAS approval for either the Section 13O or Section 13U fund tax exemption schemes. These schemes — administered by MAS under the Income Tax Act 1947 — exempt qualifying fund income from Singapore income tax, subject to ongoing conditions.
Section 13O vs Section 13U: Which Scheme Fits?
Both incentives provide tax exemption on specified income from designated investments. The differences lie in the size and complexity of the family’s wealth.
| Feature | Section 13O | Section 13U |
|---|---|---|
| Minimum AUM | S$20 million at application | S$50 million at application |
| Fund vehicle | Must be a Singapore-incorporated company | Any jurisdiction (often Singapore VCC, Cayman, BVI) |
| Investment professionals | At least 2 (1 must be non-family member) | At least 3 (at least 1 non-family member) |
| Minimum local business spending | S$200,000 per year | S$500,000 (up to S$100M AUM); S$1M (above S$100M AUM) |
| Local investment requirement | ≥ 10% of AUM or S$10M (whichever is lower) | ≥ 10% of AUM or S$10M (whichever is lower) |
| Approving authority | MAS | MAS |
Section 13O is best suited to first-generation families with consolidated, Singapore-domiciled wealth. Section 13U is more appropriate for established multi-generational families with global asset allocations and cross-border holding structures.
Local Investment Requirement (the “Capital Deployment” Rule)
Since 2022, MAS has required all 13O and 13U applicants to allocate at least 10% of AUM or S$10 million (whichever is lower) to local Singapore investments. Qualifying local investments include SGX-listed equities, qualifying debt securities issued in Singapore, units in qualifying Singapore-listed REITs and ETFs, and equity investments in non-listed Singapore operating companies (excluding property holding entities). The capital deployment requirement reflects MAS’s policy intention to ensure that family offices contribute to, and not just benefit from, Singapore’s capital markets.
For families considering whether their existing portfolio satisfies this requirement, we recommend reviewing the asset mix early in the planning process. Our broader notes on incorporating holding companies in Singapore may also help, particularly if part of the local-investment quota will be deployed into private Singapore operating companies.
Step-by-Step: Setting Up the Family Office
Step 1 — Strategic and Tax Planning
Before any incorporation, the principal and family advisers should align on objectives: what assets will be transferred, what governance structure is desired, what jurisdictions are involved, and which scheme (13O or 13U) is the better fit. Depending on the family’s existing wealth structure, this stage may also involve cross-border tax advice, exit tax considerations in the home jurisdiction, and trust restructuring.
Step 2 — Incorporate the Fund Vehicle
For 13O, this is a Singapore private limited company (Pte Ltd) under the Companies Act 1967. For 13U, this can be a Singapore VCC or an offshore vehicle. Standard ACRA incorporation timelines apply (1-2 working days once name is approved). For an outline of the typical process, see our company incorporation timeline guide.
Step 3 — Incorporate the Fund Management Company
The FMC is a separate Singapore Pte Ltd. It will execute the investment strategy on behalf of the fund. The FMC must qualify as an exempt fund manager under the Securities and Futures Act because it manages only related-party assets. It must engage at least the minimum number of investment professionals required for the chosen scheme.
Step 4 — Submit the Tax Incentive Application to MAS
Application is made through MAS’s Family Office Development Team. Required documents include the proposed organisational structure, source-of-wealth documentation, professional bios for the investment team, AUM evidence, and a detailed business plan demonstrating how the local hiring, spending, and investment requirements will be met. Approval typically takes 4-8 months in 2026, depending on complexity.
Step 5 — Hire and Obtain Work Passes
Investment professionals — both family members and external hires — will require Employment Passes. The COMPASS framework now applies. Family principals are typically excellent candidates for the Global Investor Programme (GIP) if they are eligible. For a deeper dive, see our guide on the Global Investor Programme and on the COMPASS framework.
Step 6 — Open Bank and Custodian Accounts
Singapore’s private banks and custodians have well-developed family office onboarding processes, but expect 8-16 weeks for full account opening. Source-of-wealth documentation and certified KYC packs prepared during MAS application can be reused.
Step 7 — Operationalise and Monitor Compliance
Once approved, the family office must comply with annual conditions: maintaining minimum AUM, investment professional headcount, local business spending, and the local investment quota. Annual MAS reports are required, and the IRAS administers the income tax exemption certificate.
Costs and Timeline
Realistic budgets for a 2026 setup include MAS application advisory and tax structuring (S$80,000-S$200,000+), corporate setup of the fund and FMC (S$5,000-S$15,000), annual corporate secretarial, accounting, audit, and tax (from S$25,000 per year), local business spending (S$200K to S$1M+ per year depending on scheme), and salaries for investment professionals (S$120,000-S$500,000+ each). The end-to-end timeline from initial scoping to operational family office is typically 6-12 months, with MAS approval being the main pacing item.
Common Pitfalls
The most frequent reasons MAS applications stall or get rejected include incomplete or inconsistent source-of-wealth documentation, an investment team that does not meet the qualification or salary thresholds, an unrealistic local business spending plan, and a portfolio that cannot reasonably accommodate the 10% local investment quota. Engaging experienced advisers from the outset reduces all of these risks materially.
Conclusion
Singapore remains the destination of choice for global ultra-HNW families seeking a stable, sophisticated, and tax-efficient wealth platform. The Section 13O and 13U schemes — administered by MAS — provide meaningful tax exemptions, but only when paired with thoughtful planning, real local substance, and disciplined ongoing compliance.
The team at Raffles Corporate Services works alongside families, their tax advisers, and private bankers to deliver a complete family office setup — from incorporation and MAS engagement to corporate secretarial, accounting, audit liaison, and ongoing compliance support.
— The Editorial Team, Raffles Corporate Services