Single Family Office (SFO) Singapore setup – Frequently asked questions
A single family office (SFO) is a private entity set up to manage the investments and affairs of one wealthy family, typically incorporated in Singapore to access the Section 13O tax incentive scheme and the Monetary Authority of Singapore’s (MAS) notification-based licensing exemption for qualifying family offices.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What is a single family office?
An SFO is a company incorporated for the sole purpose of managing the assets, investments and succession planning of a single family’s wealth. Unlike a multi-family office, it does not manage money for unrelated third parties, which is precisely what allows it to rely on MAS’s family office exemptions rather than a full fund management licence. Most Singapore SFOs are structured as an exempt private company limited by shares, wholly owned (directly or through holding vehicles) by members of one family, and staffed with investment professionals who make and execute investment decisions for that family’s capital.
Who is a Singapore SFO for?
An SFO structure in Singapore generally suits families with at least S$20 million in investable assets who want a dedicated, professionally staffed vehicle rather than relying solely on private banks or external asset managers. It is commonly used by families relocating to Singapore, families already resident who are consolidating wealth held across multiple jurisdictions, and principals who intend to combine the family office with a Global Investor Programme (GIP) or Employment Pass application for family members working in the office.
Eligibility and requirements
From 15 June 2026, MAS operates a dedicated, structure-agnostic licensing exemption framework for qualifying SFOs, replacing the previous reliance on the related-corporation exemption and bespoke case-by-case exemptions. Under the revised framework, a qualifying SFO notifies MAS of its operations rather than applying for a case-by-case exemption, maintains an account with a MAS-licensed bank, and files an annual return disclosing total assets under management and its banking relationship. The SFO must also maintain, at all times, an employee who is ordinarily resident in Singapore as the point of contact with MAS for matters relating to the exemption. Existing SFOs that relied on the earlier exemption arrangements have a transitional period running to 15 June 2027 to satisfy the new conditions and file the notification.
Separately, most SFOs also apply for tax exemption on qualifying income under Section 13O of the Income Tax Act 1947 (the onshore fund scheme), which as of 1 January 2025 requires the fund to hold at least S$20 million in designated investments from the point of application, with no ramp-up period, and to employ at least two investment professionals, at least one of whom is not a family member, each Singapore tax-resident and remunerated above the MAS-prescribed salary threshold.
Cost and timeline
Incorporation of the SFO vehicle itself typically takes 1 to 3 working days once know-your-client checks are complete. Preparing and filing the Section 13O tax incentive application with the Monetary Authority of Singapore generally takes 8 to 12 weeks from submission to approval, depending on the completeness of the investment mandate, fund administration arrangements and staffing evidence submitted. Ongoing costs typically include a corporate secretary and registered office (from S$1,200 per year), fund administration and accounting (from S$18,000 per year depending on transaction volume), and the salaries of the required investment professionals, which must clear the MAS salary threshold for each role.
Step-by-step process
1. Incorporate the SFO as a Singapore private company and open a corporate bank account. 2. Recruit or designate the required investment professionals and confirm their Singapore tax residency. 3. Draft the investment mandate, compliance policies and anti-money-laundering procedures. 4. Submit the Section 13O application to MAS via the fund administrator or tax adviser. 5. File the MAS notification under the family office licensing exemption framework once the 15 June 2026 conditions are met. 6. Begin operations, file the annual return, and maintain the Singapore-resident point of contact for MAS.
Common mistakes
Families frequently under-provision for the two-investment-professional requirement, assuming a single family member can satisfy both roles. Others delay the MAS notification past the 15 June 2027 transitional deadline, or fail to keep the required Singapore-resident point of contact in place after that employee resigns or relocates. A further common error is treating the 13O tax exemption and the MAS licensing exemption as the same filing: they are separate applications with separate ongoing obligations.
FAQs
Do I need a fund management licence to run a single family office in Singapore?
No. A qualifying SFO can rely on MAS’s notification-based class exemption from licensing under the framework effective 15 June 2026, provided it meets the eligibility conditions and ongoing notification obligations.
How much capital do I need to set up an SFO in Singapore?
There is no statutory minimum to incorporate the company itself, but most families pursuing the Section 13O tax exemption need at least S$20 million in designated investments to meet the scheme’s qualifying condition.
Can an SFO combine with a work pass application for family members?
Yes. Family members working as investment professionals in the SFO commonly apply for an Employment Pass, ONE Pass or via the Global Investor Programme, depending on their role and investment commitment.
What happens if my SFO was set up under the old exemption arrangements?
Existing SFOs have until 15 June 2027 to satisfy the new class exemption conditions and file the required MAS notification.
Is Section 13O the only tax scheme available to family offices?
No. Larger family offices with at least S$50 million in assets under management typically use Section 13U, the enhanced-tier scheme, instead.
Related guides
For fund vehicle structuring alongside a family office, see our guide to VCC structures for family office investment vehicles. Families combining an SFO with a work pass or investor route should also read the Global Investor Programme (GIP) options A, B and C. For the related principal-track pass route, see Family Office Principal Track under ONE Pass and GIP: common mistakes and rejection reasons.
Authoritative references: the Monetary Authority of Singapore’s fund tax incentive scheme for family offices, the Inland Revenue Authority of Singapore, and the Singapore Economic Development Board’s Global Investor Programme.
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.