Singapore has established itself as the premier destination for family offices in Asia. The combination of political stability, a business-friendly regulatory environment, world-class professional infrastructure, and generous tax incentive frameworks has attracted hundreds of ultra-high-net-worth (UHNW) families from across Asia, Europe, and beyond. If you are a family principal, private wealth adviser, or family office executive considering Singapore, this guide provides a comprehensive overview of what it takes to set up a family office here in 2026.
What Is a Single Family Office?
A Single Family Office (SFO) is a private company established to manage the financial and personal affairs of a single ultra-high-net-worth family. Unlike a multi-family office, which serves multiple families, an SFO is wholly owned by and dedicated to one family. Its activities typically include investment management, estate planning, tax structuring, philanthropy, succession planning, and sometimes concierge or lifestyle management services.
In Singapore, SFOs are not separately licensed by the Monetary Authority of Singapore (MAS) as a distinct category of regulated entity. However, the investment management activities carried out by an SFO may require the SFO to hold a Capital Markets Services (CMS) licence, or to qualify as an Exempt Fund Manager under the Securities and Futures Act 2001. Most SFOs structure themselves to qualify as Exempt Fund Managers, which allows them to manage assets without holding a full CMS licence provided certain conditions are met.
Why Singapore?
Several structural advantages make Singapore the natural choice for UHNW families establishing a family office:
- Political and legal stability: Singapore’s rule of law, independent judiciary, and consistent government policy make it one of the most reliable jurisdictions in the world for long-term wealth preservation.
- Tax efficiency: Singapore has no capital gains tax, no inheritance tax, and no wealth tax. Combined with the Section 13O and 13U tax incentive frameworks, qualifying family offices can achieve near-zero effective tax rates on investment returns.
- Treaty network: Singapore’s network of over 80 double tax agreements (DTAs) facilitates efficient cross-border investment and income structuring.
- Talent and infrastructure: Singapore has a deep pool of investment professionals, fund administrators, legal advisers, tax specialists, and private bankers with experience serving UHNW clients.
- Connectivity: Singapore sits at the heart of Southeast Asia and is the regional hub for many global financial institutions, providing unparalleled access to Asian markets.
The Two Key Tax Incentive Frameworks
The most important aspect of the Singapore family office structure from a tax perspective is the choice between Section 13O and Section 13U of the Income Tax Act 1947. Both schemes provide full tax exemption on income and gains from a broad range of “designated investments” — including equities, bonds, derivatives, real estate investment trusts, and alternative assets — for qualifying funds managed by Singapore-based fund managers.
Section 13O — The Enhanced-Tier Fund Scheme
Section 13O (formerly known as Section 13R) is designed for single family offices with substantial but not yet ultra-large asset bases. The key requirements as of 2025–2026 are:
- Minimum AUM: SGD 20 million at the point of application, maintained throughout the exemption period.
- Fund structure: The fund must be a Singapore-incorporated company (or a VCC sub-fund).
- Investment professionals: At least two investment professionals (IPs) must be employed by the fund manager, earning at least SGD 3,500 per month. One IP may be a family member.
- Local investment: At least 10% of AUM (or SGD 10 million, whichever is lower) must be deployed into local Singapore investments, such as SGX-listed equities, qualifying Singapore bonds, or unlisted Singapore operating companies.
- Business spending: A minimum annual business spending in Singapore of SGD 200,000 (for funds below SGD 50 million AUM) to SGD 500,000 (for funds between SGD 50 million and SGD 100 million), scaling up for larger funds.
Section 13U — The Onwards Enhanced-Tier Fund Scheme
Section 13U (formerly known as Section 13X) targets larger, more established family offices. It offers the same tax exemption as 13O but with stricter requirements intended to ensure meaningful economic substance in Singapore:
- Minimum AUM: SGD 50 million at the point of application, maintained throughout the exemption period.
- Investment professionals: At least three IPs, with at least one who is a non-family member. All IPs must earn at least SGD 3,500 per month.
- Local investment: Same 10%/SGD 10 million local investment requirement as 13O.
- Business spending: Minimum SGD 500,000 per annum (for funds below SGD 100 million AUM), rising to SGD 1 million for larger funds.
- Physical office: MAS expects a genuine physical office presence in Singapore. Virtual offices are heavily scrutinised and generally not accepted.
| Criterion | Section 13O | Section 13U |
|---|---|---|
| Minimum AUM (at application) | SGD 20 million | SGD 50 million |
| Investment Professionals | 2 (1 may be family) | 3 (1 must be non-family) |
| Local Investment Requirement | 10% AUM or SGD 10M | 10% AUM or SGD 10M |
| Min. Annual Business Spending | SGD 200K–500K | SGD 500K–1M+ |
| Physical Office Required | Preferred | Required |
Step-by-Step: Setting Up a Family Office in Singapore
Step 1 — Incorporate the Fund Company
The first step is to incorporate a Singapore private limited company (or a Variable Capital Company sub-fund) that will hold the family’s investment assets. This company will be the “fund” for the purposes of the 13O or 13U tax exemption application. As we discuss in our guide on incorporating a holding company in Singapore, careful thought should be given to the shareholding structure, constitutional documents, and governance arrangements at this stage.
Step 2 — Incorporate the Fund Management Company
A separate Singapore private limited company is typically established as the fund management company (FMC). The FMC is the entity that will be the registered fund manager and will employ the investment professionals. The FMC must be wholly owned by the family (or family members) and must qualify as an Exempt Fund Manager under the Securities and Futures Act.
Step 3 — Appoint Directors and Key Officers
Both the fund company and the FMC must comply with Singapore’s director residency requirements — at least one director must ordinarily reside in Singapore. The FMC must appoint the required investment professionals who meet MAS’s qualification and remuneration thresholds. See our article on appointing directors in Singapore for a detailed overview of the legal requirements.
Step 4 — Prepare and Submit the MAS Application
The family office must prepare a comprehensive application to MAS for the tax incentive. This involves submitting detailed information on the family’s background, source of wealth, investment mandate, proposed structure, staffing plan, and local investment strategy. MAS conducts a fit and proper assessment of beneficial owners and key personnel.
Since 2024, MAS has committed to processing complete applications within three months, significantly reducing the previous uncertainty around timelines. However, incomplete applications or those requiring additional due diligence may take longer.
Step 5 — Establish Operational Infrastructure
Once the MAS application is submitted (and ideally after conditional approval is received), the family office should establish its operational infrastructure, including:
- A physical office in Singapore’s Central Business District or a premium business location;
- Bank accounts with a Singapore-licensed bank or private bank;
- Custodian arrangements for investment assets;
- Fund administration services (or in-house capabilities for larger family offices);
- Legal, tax, and compliance advisers.
Step 6 — Ongoing Compliance
Once the family office is operational, it must comply with a range of ongoing obligations, including annual tax filing with IRAS, AML/CFT compliance under MAS notices, annual reports to MAS confirming continued compliance with the tax incentive conditions, and corporate secretarial obligations under the Companies Act 1967. Our article on Annual Return filing requirements provides a useful reference for the corporate compliance calendar.
Common Pitfalls to Avoid
Based on experience advising UHNW families through the setup process, several common mistakes are worth flagging:
- Underestimating the AUM requirement: The SGD 20 million (13O) and SGD 50 million (13U) thresholds must be met at application and maintained continuously. Families who set up an SFO with AUM just above the threshold and then experience portfolio drawdowns risk losing their tax exemption.
- Insufficient local investment: The local investment requirement is a genuine commitment, not a box-ticking exercise. MAS expects the family office to deploy capital into Singapore markets and will review compliance carefully during annual reporting.
- Treating business spending casually: Annual business spending must be genuine expenditure on qualifying Singapore-based activities. Payments to related parties or artificial arrangements are scrutinised.
- Delaying the physical office setup: MAS expects a real Singapore presence. Families who attempt to run their Singapore family office remotely, or through a shared desk arrangement, are unlikely to satisfy the economic substance requirements.
- Inadequate governance documentation: MAS expects well-documented investment policies, compliance procedures, and governance frameworks. Families who arrive with informal arrangements often face delays or requests for additional information.
Singapore Family Office vs Other Jurisdictions
Families evaluating Singapore often also consider Hong Kong, the Cayman Islands, or Jersey. Singapore’s advantages over these alternatives include its political stability (compared to Hong Kong), its robust treaty network (compared to Cayman), and its position as a gateway to Southeast Asian investment opportunities (compared to Jersey). For families whose wealth has significant exposure to China or Southeast Asia, Singapore is increasingly the dominant choice.
For families considering the VCC structure as the fund vehicle for their family office, our detailed comparison of VCC vs Cayman SPC provides a comprehensive analysis of the structural options available.
How Raffles Corporate Services Can Help
Setting up a family office in Singapore involves navigating multiple regulatory, tax, and corporate governance requirements across several months. Raffles Corporate Services provides end-to-end support for family office setup, including incorporation of the fund company and FMC, appointment of company secretaries, director compliance advisory, and liaison with MAS and IRAS throughout the application process.
Contact us to discuss your family office structure and how we can support your Singapore establishment.
— The Editorial Team, Raffles Corporate Services