Single Family Office (SFO) Singapore setup — Costs and fees breakdown
Published on: 25 Jun, 2026

Single Family Office (SFO) Singapore setup — Costs and fees breakdown

A single family office (SFO) in Singapore is a private entity that manages the wealth of one family, and a realistic 2026 setup budget runs from S$80,000 to S$250,000 in first-year professional and operating costs, with annual running costs of S$300,000 to S$1,000,000 depending on headcount and assets under management.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What a single family office is, and who it suits

A single family office serves one family. It typically sits as a Singapore private limited company that acts as the fund manager, advising or managing a related investment-holding vehicle that holds the family’s liquid assets. The structure separates the family’s operating wealth from its investment activity and creates a professional governance layer around succession, philanthropy and reporting.

An SFO is generally worth establishing where investable assets exceed roughly S$50 million. Below that level, the fixed cost of staff, audit, tax and compliance erodes returns and a multi-family office or private bank mandate is usually more economical. Families also use the SFO as the anchor for relocation, since the principal and key staff can apply for immigration passes tied to the office.

For more on this on our site, see Family Office Principal track under ONE Pass and GIP — Step-by-step walkthrough.

Single family office Singapore setup — the cost components

The headline figure most families ask about is the all-in cost. Set-up costs and recurring costs behave very differently, so it helps to separate them.

One-off setup costs (Year 1): incorporation of the fund management company and the holding vehicle (S$3,000–S$8,000 including ACRA fees and a corporate secretary), legal structuring and fund documentation (S$30,000–S$120,000), tax incentive application support for Section 13O or 13U (S$30,000–S$80,000), and bank and brokerage account opening. A modest SFO commonly lands near S$80,000–S$150,000; a more complex multi-entity structure with trusts can exceed S$250,000.

Recurring annual costs: investment professional salaries (the single largest line, often S$200,000–S$600,000 for the required headcount), fund administration and accounting (S$20,000–S$60,000), annual audit (S$15,000–S$40,000), tax compliance and the annual incentive declaration (S$10,000–S$30,000), and office, software and custody fees. A lean SFO can run at roughly S$300,000 per year; a fully staffed office with multiple asset classes can exceed S$1 million.

Always confirm the current rules with the authoritative source: the Monetary Authority of Singapore, IRAS, the Economic Development Board.

Eligibility and the MAS tax incentive thresholds

Most SFOs are built around a Monetary Authority of Singapore (MAS) tax incentive so that fund income is exempt. The two workhorses are the Section 13O scheme (the onshore fund tax exemption) and the Section 13U scheme (the enhanced-tier scheme). The published conditions are reviewed periodically, so families should confirm the current parameters with MAS before committing.

As a guide, the 13O route generally expects a minimum fund size around S$20 million at application with a defined local business spending requirement and at least two investment professionals. The 13U route targets larger pools, commonly S$50 million or more, with higher spending and headcount conditions. Both require the fund to be managed by a Singapore-based family office company and to maintain qualifying assets in Singapore. The underlying exemptions sit within the fund-incentive provisions of the Income Tax Act 1947, and Section 142 of the Income Tax Act 1947 frames how such exemptions are administered.

Step-by-step process and timeline

The typical journey runs: (1) confirm objectives and choose 13O or 13U; (2) incorporate the management company and the holding vehicle; (3) prepare the fund structure and investment mandate; (4) submit the tax incentive application to MAS; (5) open banking and custody; (6) hire investment professionals; and (7) commence operations and file the first annual declaration.

Realistically, allow three to six months from instruction to MAS approval, and longer where the family is also relocating or where source-of-wealth documentation is complex. Banking onboarding is frequently the critical path, so it should start early and in parallel with the incentive application.

Common mistakes and gotchas

Families often underestimate recurring cost and over-engineer the structure on day one. A second frequent error is treating the incentive as automatic: the conditions on assets, spending and headcount must be met and maintained every year, and a lapse can cost the exemption. Source-of-wealth substantiation for banking is another common bottleneck, as is assuming relocation passes are guaranteed simply because the SFO exists. Build the office for the next decade, not just for approval.

Choosing between a 13O and a 13U family office

The choice of tax incentive shapes the whole budget. The Section 13O scheme carries a lower fund-size threshold and a smaller local business spending floor, which makes it the practical default for a first single family office. The Section 13U enhanced-tier scheme suits families with larger pools, multiple asset classes or an intention to build a sizeable in-house team, and it can accommodate offshore structures that 13O cannot.

A useful rule of thumb: if your investable assets sit comfortably above the 13O thresholds but below institutional scale, 13O usually delivers the same exemption at a materially lower annual cost. Families expecting rapid growth sometimes start on 13O and plan a later transition, but a move to 13U requires a fresh application rather than an automatic upgrade.

Governance, succession and the wider purpose

Beyond tax, a single family office is a governance platform. It is where families formalise an investment policy statement, set risk limits, document delegation to professional staff, and build a succession plan that survives the founder. Many families layer in a trust or a private trust company to hold shares in the management entity, separating ownership from control and smoothing intergenerational transfer.

The office also becomes the hub for consolidated reporting across banks and custodians, for philanthropy through a dedicated giving vehicle, and for family education so the next generation understands the assets they will inherit. These soft functions are often what justify the cost long after the tax saving is taken for granted.

Relocation and the people behind the office

A family office is only as good as its team. The MAS incentives expect genuine substance, meaning real investment professionals based in Singapore making real decisions. The principal and senior hires may apply for immigration passes connected to the office, and the family typically relocates to be close to the operation. Plan headcount against the incentive’s minimum-employee condition from the outset, and budget competitive Singapore salaries, since under-resourcing the team is both a compliance risk and a performance risk.

Related guides

FAQs

How much does a single family office in Singapore cost to set up?
Expect S$80,000–S$250,000 in first-year setup and professional fees, then S$300,000–S$1,000,000 per year to run, driven mainly by investment-professional salaries, audit and tax compliance.

Is a minimum amount of wealth required?
There is no statutory minimum to incorporate, but the MAS tax incentives carry fund-size conditions (broadly around S$20 million for 13O and S$50 million or more for 13U), and economically an SFO usually makes sense above roughly S$50 million in investable assets.

How long does setup take?
Around three to six months from instruction to MAS approval, with banking onboarding often the longest single step.

Does setting up an SFO grant residency?
Not automatically. The principal and key employees may apply for immigration passes connected to the office, but each application is assessed on its own merits.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.