Singapore has emerged as Asia’s leading family office hub, with the Monetary Authority of Singapore (MAS) reporting close to 2,000 single family offices established in the city-state by end-2024 — and that number continues to climb in 2026. The combination of a stable legal system under common law, an extensive tax treaty network, the section 13O / 13U tax incentive schemes, and political stability has made Singapore the natural choice for high-net-worth families looking to consolidate wealth management, succession planning and lifestyle in one jurisdiction.
This guide walks through the complete process of setting up a single family office (SFO) in Singapore in 2026 — covering the structural choices, the section 13O and 13U tax schemes, the MAS approval pathway, the headcount and spending requirements that came in with the 2023 / 2024 reforms, and the practical timeline. We focus on the SFO model (one family) rather than the multi-family office (MFO) model, which carries different MAS licensing requirements.
What Is a Single Family Office?
An SFO is an entity that manages the wealth of a single family — typically a holding-and-investment vehicle that employs investment professionals to manage a pool of assets, and a separate corporate vehicle that owns and houses those assets. There is no statutory definition of “single family office” in Singapore law; the concept is a practical one shaped by MAS guidance and the tax incentive schemes.
An SFO that only manages the assets of related family members is generally exempt from the licensing requirements of the Securities and Futures Act 2001 (SFA) and the Financial Advisers Act 2001. This is the structural foundation that makes the SFO model possible without a Capital Markets Services (CMS) licence — but the boundaries are watched carefully by MAS.
The Two Tax Incentive Schemes: 13O and 13U
The two scheme names refer to the relevant sections of the Income Tax Act 1947. Both, when approved, give the family fund a 0% tax rate on “specified income” from “designated investments”. The difference is in scale, flexibility, and admission requirements.
Section 13O: The “Onshore” Scheme
The Section 13O Onshore Fund Tax Exemption scheme is for the typical mid-sized SFO. The 2026 requirements:
- Minimum AUM: S$20 million in designated investments at point of application — no ramp-up period
- Investment Professionals: at least 2 IPs employed by the family office (one IP allowed at point of application with one-year grace to hire the second)
- Local Business Spending (LBS): minimum S$200,000 per year, scaling with AUM tiers
- Capital Deployment Requirement: at least 10% of AUM or S$10 million (whichever is lower) deployed in local Singapore investments — SGX-listed equities, qualifying debt securities, non-listed Singapore operating companies, or specified Singapore-related funds
- Vehicle: the fund vehicle must be a Singapore-incorporated company
13O is the most popular pathway for the vast majority of newly established Singapore SFOs.
Section 13U: The “Enhanced” Scheme
The Section 13U Enhanced-Tier Fund Tax Exemption scheme is for larger or more sophisticated SFOs. The 2026 requirements:
- Minimum AUM: S$50 million in designated investments at point of application
- Investment Professionals: at least 3 IPs (with at least one being a non-family member)
- Local Business Spending: minimum S$500,000 per year (tiered by AUM)
- Capital Deployment Requirement: same 10% / S$10 million local investment requirement as 13O
- Vehicle: can be incorporated in Singapore or, in some cases, offshore — providing greater structural flexibility
13U is generally appropriate for larger families or for those expecting to bring in trusted non-family professional staff. For a side-by-side comparison of 13O and 13U, see our existing article on Section 13O vs 13U.
The Typical Two-Vehicle Structure
Most Singapore SFOs use a two-vehicle structure for clean separation between the management entity and the asset-holding fund.
| Vehicle | Function | Typical Form |
|---|---|---|
| Fund Vehicle (the “Fund”) | Holds investment assets; the entity that applies for 13O / 13U exemption | Singapore Pte Ltd (or VCC for 13U) |
| Family Office Entity (the “FO”) | Provides management services to the Fund; employs the Investment Professionals; receives a service fee | Singapore Pte Ltd |
The FO is paid an arm’s-length service fee by the Fund (typically a cost-plus mark-up of 5-10%, supported by transfer pricing documentation). The FO’s profit becomes its corporate tax base — taxed at 17%, but typically modest after expenses. The Fund itself, once approved for 13O / 13U, pays no Singapore tax on specified income from designated investments. For families also exploring the VCC structure (especially for 13U), the Variable Capital Companies Act 2018 framework offers significant cost and operational efficiencies.
Step-by-Step Setup Timeline
From mandate to first investment, a Singapore SFO typically takes 4-6 months to fully launch:
| Month | Activity |
|---|---|
| Month 1 | Family meeting; investment policy statement; choice of 13O vs 13U; structure design; tax counsel and corporate counsel engaged |
| Month 2 | Incorporation of Fund and FO entities with ACRA; bank account opening commenced; appointment of corporate secretary |
| Month 3 | 13O / 13U application drafted with tax adviser; Investment Professional candidates shortlisted and interviewed; office space and resident director arrangements finalised |
| Month 4-5 | Application submitted to MAS via the Singapore EDB or MAS portal; MAS clarification round; bank account funded; first IP hired and Employment Pass approved |
| Month 6 | MAS approval received (typically within 4-6 months of submission); first investments transferred in; ongoing compliance setup |
Bank account opening — historically a bottleneck — has improved in 2025-2026 with the Major Singapore banks now running streamlined SFO onboarding desks. Expect 6-10 weeks rather than the 3-4 months of earlier years, provided all KYC, source-of-funds and family wealth documentation is well prepared.
Investment Professional Hiring
The IP requirement is one of the most-watched aspects of the schemes. MAS expects substance — real human investment professionals working out of Singapore, not nominal appointments. The 2026 expectations are:
- At least 2 IPs for 13O, 3 for 13U
- Each IP must be a full-time employee of the FO
- Each IP must hold relevant qualifications (e.g. CFA, CAIA, finance degree, 3+ years’ relevant industry experience)
- Minimum salary of S$3,500 per month per IP (in practice, market rates are far higher — typically S$10-15k+/month for a junior IP, six figures for senior)
- For 13U: at least one IP must be a non-family member to demonstrate professional management substance
IP roles attract strong COMPASS scoring under the Employment Pass framework — see our COMPASS guide for the EP application mechanics. The financial services sector remains on MOM’s Shortage Occupation List for several IP roles, which materially boosts approval certainty.
Local Business Spending Requirements
To keep the schemes from being passive shells, MAS requires meaningful Local Business Spending (LBS). The 2026 tiers (combined Fund + FO spending):
| AUM Band | 13O Minimum LBS | 13U Minimum LBS |
|---|---|---|
| ≤ S$50 million | S$200,000 | — |
| > S$50m to S$100m | S$500,000 | S$500,000 |
| > S$100m | S$1 million | S$1 million |
Qualifying LBS includes IP and other staff salaries, office rental, professional fees (legal, accounting, audit, fund administration), local infrastructure and technology subscriptions, and SGX exchange fees. LBS is verified annually as part of the scheme’s ongoing compliance — failure can lead to clawback of the tax exemption.
Capital Deployment Requirement (CDR)
The CDR was introduced in April 2022 and tightened thereafter. Both 13O and 13U funds must deploy at least 10% of AUM or S$10 million (whichever is lower) into specified local Singapore investments. Qualifying investments include:
- SGX-listed equities, REITs and ETFs
- Singapore-domiciled qualifying debt securities
- Non-listed Singapore operating companies (with operational substance, not just IP holding companies)
- Singapore-domiciled funds investing primarily in Singapore
- Investments into climate-related projects in Singapore (under the green-finance pillar)
This requirement keeps SFOs anchored to the Singapore capital market — a non-negotiable element of how MAS thinks about the scheme as economic policy, not just tax policy.
The Wider Singapore Wealth Ecosystem
Setting up an SFO is not just about the tax scheme. Many families combine 13O / 13U with the Global Investor Programme for PR, with private trust structures (often Singapore Trust Company-administered), with Singapore life insurance for inheritance planning, and with a corporate services partner for the day-to-day filings.
Sequencing matters: many families incorporate the SFO first, then apply for GIP / PR roughly 12 months later once the operating substance is visible, then look at trust and insurance layers. The choice between Section 13O and 13U should also be informed by long-term family growth — 13U gives more headroom but demands more substance from day one. For PR application support that often runs in parallel, see our Singapore PR application guide.
Annual Compliance for an SFO
Once running, an SFO has the same general filing rhythm as any Singapore company plus scheme-specific obligations — see our Singapore company compliance calendar. The scheme-specific layer involves:
- Annual scheme report to MAS confirming AUM, LBS, IP headcount, and CDR compliance
- Audited financial statements for the Fund (often required even where small-company exemption otherwise applies)
- Transfer pricing documentation for the FO management fee
- FATCA / CRS reporting via the Fund’s account-holding bank
- Source-of-funds refresh as required by MAS-licensed banks under enhanced AML
The MAS reference for the schemes is on mas.gov.sg. The Economic Development Board’s family office hub is at edb.gov.sg.
Conclusion
Setting up a Singapore family office in 2026 is a substantial but well-understood project — typically 4-6 months end-to-end, involving an SFO and Fund vehicle, a 13O or 13U application to MAS, hiring 2-3 Investment Professionals on Employment Passes, leasing office space, opening bank accounts, and committing to local business spending and capital deployment. The reward is one of the cleanest, most respected wealth management hubs in Asia and a 0% tax rate on the Fund’s investment income.
If you would like our team at Raffles Corporate Services to handle the corporate secretarial setup, ACRA filings, and ongoing compliance for your Singapore SFO, we work alongside leading tax and legal counsel to deliver the full launch — and continue as your back-office partner thereafter. Reach out via the contact form on the Raffles Corporate Services website. For the broader HNW relocation context, see Little Big Red Dot.
— The Editorial Team, Raffles Corporate Services