Singapore has cemented its position as Asia’s premier wealth management hub, and at the heart of that growth is the dramatic rise of the family office. Since 2019, the number of single family offices (SFOs) in Singapore has grown from around 400 to well over 1,500 — a testament to the city-state’s compelling combination of political stability, tax efficiency, a robust legal framework, and access to Asia’s fastest-growing markets.
If you are a high-net-worth individual or family considering establishing a family office in Singapore, this guide covers everything you need to know: the structural options, the Monetary Authority of Singapore (MAS) licensing requirements, the Section 13O and 13U tax incentive schemes, the capital deployment requirements, and the practical steps to getting started.
What Is a Family Office?
A family office is a private wealth management structure that manages the investments and financial affairs of a single wealthy family (a Single Family Office or SFO) or multiple families (a Multi-Family Office or MFO). Unlike traditional wealth management arrangements, a family office gives the family direct control over investment decisions, asset allocation, succession planning, and governance — while potentially benefiting from significant tax advantages in Singapore.
For the purpose of Singapore’s regulatory framework, the MAS focuses principally on SFOs that manage assets exclusively for one family. MFOs, which manage assets for multiple unrelated families, generally require a full Capital Markets Services (CMS) licence.
Why Set Up a Family Office in Singapore?
Several factors make Singapore the preferred jurisdiction for Asian and global family offices:
- Tax efficiency: Singapore has no capital gains tax, no inheritance tax, and no dividend tax. Under the Section 13O and 13U incentive schemes, approved family office funds can receive full tax exemption on qualifying investment income.
- Political and legal stability: Singapore ranks among the world’s most transparent and legally predictable jurisdictions. The legal system is based on English common law, and the courts reliably enforce contracts and property rights.
- Geographic access: Singapore sits at the heart of Southeast Asia, with excellent connectivity to China, India, and the ASEAN markets. It is the gateway to the region’s growth story.
- Depth of financial services: Singapore hosts the global and regional headquarters of most major banks, asset managers, and professional service providers, making it easy to source top-quality fund administrators, auditors, legal counsel, and investment talent.
- Treaty network: Singapore’s network of over 100 double taxation agreements (DTAs) provides meaningful withholding tax relief on investments across the region.
Regulatory Framework: Do You Need a MAS Licence?
Under the Securities and Futures Act 2001, any entity carrying out fund management as a business in Singapore is required to be licensed by the MAS — unless an exemption applies.
For SFOs, the key exemption is found in the Second Schedule of the Securities and Futures (Licensing and Conduct of Business) Regulations, which exempts a corporation from the licensing requirement if it manages assets exclusively for “related corporations” or members of the same family. In practice, most SFOs structure their investment management entity to qualify for this exemption, meaning they do not need a CMS licence.
However, qualifying for the Section 13O or 13U tax exemption requires the fund to be managed by a MAS-licensed or exempt fund manager. The SFO’s investment management entity must therefore be eligible under the licensing framework, and MAS will review the structure as part of the incentive application process.
Section 13O and 13U: The Core Tax Incentive Schemes
The two principal tax incentive schemes for Singapore family offices are administered by the MAS Fund Tax Incentive Scheme. Both schemes provide full income tax exemption on qualifying income — including dividends, interest, and gains from designated investments.
Section 13O (Enhanced-Tier Fund Scheme)
Section 13O is the scheme most commonly used by smaller to mid-sized family offices. The key requirements are:
| Requirement | Section 13O Threshold |
|---|---|
| Minimum AUM | S$20 million at time of application |
| Investment professionals | At least 2 Singapore residents |
| Local Business Spending (LBS) | S$200,000/year (AUM < S$250M); S$300,000/year (AUM S$250M–S$2B); S$500,000/year (AUM > S$2B) |
| Capital deployment | 10% of AUM or S$10M (whichever is lower) in qualifying Singapore assets |
| Fund vehicle | Singapore-incorporated company or VCC |
Section 13U (Ultra High Net Worth Scheme)
Section 13U targets larger family offices with higher AUM and a stronger commitment to Singapore:
| Requirement | Section 13U Threshold |
|---|---|
| Minimum AUM | S$50 million at time of application |
| Investment professionals | At least 3 Singapore residents, including at least 1 non-family member |
| Local Business Spending (LBS) | Same tiers as Section 13O |
| Capital deployment | 10% of AUM or S$10M (whichever is lower) in qualifying Singapore assets |
| Fund vehicle | Any structure (not limited to Singapore-incorporated entities) |
Qualifying Singapore Assets for Capital Deployment
The capital deployment requirement — one of the most important conditions for maintaining incentive status — requires that at least 10% of the fund’s AUM (or S$10 million, whichever is lower) be invested in qualifying Singapore assets at all times. These include:
- Singapore-listed equities and REITs
- Qualifying Singapore Government Securities and Statutory Board bonds
- Loans to Singapore-based businesses
- Private equity investments in Singapore-based companies
- Qualifying venture capital investments
The Application Process: Step by Step
Step 1: Structure Your Family Office
The typical Singapore family office structure involves two key entities: a fund vehicle (the entity holding the family’s investments, often a Singapore private limited company or a Variable Capital Company (VCC)) and a fund management company (the investment manager, which qualifies for the licensing exemption). These are usually supported by a trust structure or holding company at the top of the family’s wealth hierarchy.
Step 2: Incorporate the Entities
Both the fund vehicle and the fund management company must be incorporated in Singapore. This involves engaging a licensed corporate secretary, appointing at least one Singapore-resident director for each entity, and registering with ACRA. The corporate secretarial requirements for Singapore companies are covered in our Singapore Company Compliance Checklist.
Step 3: Apply to MAS for the Tax Incentive
Applications for Section 13O or 13U approval are submitted directly to MAS. The application must include detailed information about the family’s source of wealth, the fund’s investment strategy, the AUM, the proposed headcount plan, the Local Business Spending commitments, and the capital deployment plan. MAS carries out a rigorous review, including fit and proper assessments of the family principals and key personnel.
Processing times vary but typically range from three to six months from submission of a complete application. MAS may request additional information or documents during the review.
Step 4: Ongoing Compliance
Once approved, the family office must maintain ongoing compliance with the conditions of the incentive scheme. This includes annual reporting to MAS on AUM, headcount, Local Business Spending, and capital deployment; filing annual tax returns with IRAS; and maintaining proper books and records. Failure to meet the conditions can result in claw-back of tax exemptions.
The Global Investor Programme (GIP): Immigration for Family Office Principals
Many family office principals who relocate to Singapore do so through the Global Investor Programme (GIP), administered by the Economic Development Board (EDB). The GIP grants permanent residency to qualifying investors who commit to investing in Singapore, including through the establishment of a family office managing at least S$200 million in AUM.
The GIP is one of several immigration pathways for high-net-worth individuals — others include the standard Employment Pass route for working professionals, or the ONE Pass for exceptional talent. For those interested in the immigration dimension of relocating to Singapore, our team can provide guidance tailored to your circumstances.
Costs and Timelines
Setting up a Singapore family office is a significant investment of time and money. Typical costs include incorporation fees for the fund vehicle and management company, MAS application preparation (often involving specialist fund structuring lawyers), ongoing audit, tax filing, and corporate secretarial costs, and the Local Business Spending requirement (a minimum of S$200,000 per year). Total set-up costs including professional fees typically range from S$80,000 to S$200,000 depending on complexity, with ongoing annual costs thereafter.
The full timeline from initial planning to MAS approval is typically nine to twelve months, accounting for structuring, incorporation, and MAS review.
How Raffles Corporate Services Can Help
At Raffles Corporate Services, we assist family offices and their advisers with the full suite of Singapore corporate services: entity incorporation, corporate secretarial compliance, annual filing with ACRA and IRAS, and ongoing compliance support. We work alongside specialist fund lawyers and MAS-licensed fund administrators to support your family office from set-up through to ongoing operations.
Whether you are in the early stages of exploring Singapore as a family office location, or are ready to begin the structuring process, contact us to discuss how we can support your plans.
— The Editorial Team, Raffles Corporate Services