Single Family Office (SFO) Singapore setup — Eligibility and requirements checklist

A single family office (SFO) is a private company that manages the wealth of one family, and setting one up in Singapore means incorporating the entity, appointing investment professionals, and applying to the Monetary Authority of Singapore (MAS) for a tax incentive under the Income Tax Act 1947. The two principal incentives are the Section 13O and Section 13U schemes, and this checklist walks through the eligibility, cost and timeline for each.

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?

A single family office manages the investable assets of one family group, most often after a liquidity event such as a business sale, an initial public offering or a generational transfer of wealth. Because it serves only related persons, it is generally exempt from holding a capital markets services licence under the Securities and Futures Act 2001, relying on the related-corporation or single-family exemption administered by MAS.

In practice a Singapore SFO is built as two entities working together. A fund vehicle holds the family’s assets and receives investment income, while a separate management company employs the investment team, holds the office lease and pays local expenses. The tax incentive attaches to the fund vehicle, while the management company carries the economic substance that MAS expects to see in Singapore, including qualified staff and genuine local decision-making.

This separation matters because the exemption is granted to the fund, not to the family, and the fund’s income must be kept clearly distinct from the family’s personal spending.

Who a single family office setup suits

An SFO generally makes sense for families with at least S$20,000,000 to S$50,000,000 in investable assets. The fixed cost of investment professionals, compliance, audit and premises needs a sufficient asset base to justify, and families below that level often use a multi-family office, a private bank discretionary mandate, or a simpler holding company instead.

The structure is especially popular with families relocating to Singapore for its political stability, rule of law, deep banking sector and extensive tax treaty network. It also pairs naturally with residency planning: the principal and immediate family members frequently pursue permanent residence at the same time, most often through the Global Investor Programme administered by the Singapore Economic Development Board.

Eligibility and requirements checklist

The core requirements, drawn from the current MAS conditions for family office incentives, are set out below. These conditions are periodically updated, so verify the latest MAS circular before applying.

• A Singapore-incorporated fund entity and a Singapore-based management company.
• Minimum assets under management of S$20,000,000 at the point of application for a Section 13O fund, and S$50,000,000 for a Section 13U fund.
• Investment professionals employed locally: at least two for 13O and at least three for 13U, with at least one who is not a member of the family.
• Minimum annual local business spending, tiered by fund size, ranging from S$200,000 to S$1,000,000.
• A local investment requirement, currently 10% of AUM or S$10,000,000 (whichever is lower) deployed into eligible Singapore investments such as SGX-listed equities, qualifying funds or MAS-licensed manager products.
• Audited annual financial statements and an annual declaration of continued compliance to MAS.

Cost and timeline

Budget S$8,000 to S$20,000 for incorporation, corporate secretarial setup and drafting of the MAS application. Ongoing annual costs typically run S$40,000 to S$150,000 for accounting, audit, corporate tax and a corporate secretary, before investment professional salaries, which are the largest recurring cost and are set by the market rate for portfolio managers.

Incorporation with ACRA takes one to three working days once names, directors and shareholders are confirmed. Corporate bank and custody account onboarding is usually the longest lead item, taking four to eight weeks. The MAS incentive application itself typically takes three to six months from a complete submission to approval, so families almost always incorporate first and run the application in parallel.

Documents you will need

A complete application draws on the family tree and proof of the family relationship, source-of-wealth documentation, the fund and management company constitutions, board and shareholder details, the investment mandate or policy statement, employment contracts and CVs for the investment professionals, and a projected budget showing local business spending. Weakness in any of these is the most common reason a submission is returned for clarification.

Step-by-step process

1. Confirm the family group, source of funds and target AUM.
2. Incorporate the fund entity and the management company with ACRA.
3. Open corporate bank or custody accounts and begin funding the vehicle.
4. Appoint investment professionals and a Singapore-resident director.
5. Prepare and lodge the Section 13O or Section 13U application with MAS.
6. On approval, file the corporate tax return claiming the exemption and meet the annual audit, reporting and local-spend conditions each year.

Common mistakes to avoid

The most frequent errors are underestimating the local business spending requirement, hiring investment professionals too late to satisfy the headcount condition at the point of application, and failing to keep records that separate family personal expenses from the management company’s books. A fourth trap is applying before the fund is genuinely funded to the minimum threshold. Each of these can delay approval or put the incentive at risk on annual review.

Residency planning for the family principal

Families rarely set up an office in isolation from where they intend to live. The Global Investor Programme, administered by the Singapore Economic Development Board, offers a permanent residence route for principals who commit a qualifying investment, and it dovetails with the family office because the investment can align with the fund’s mandate. Processing typically takes several months, so families begin residency and office applications together to avoid a gap.

Family members can also explore employment passes through the management company where they take genuine roles, though this must reflect real functions rather than a paper arrangement.

Ongoing compliance and governance

Once approved, the office runs an annual cycle: bookkeeping, an audit of the fund’s financial statements, the corporate tax return claiming the exemption, and a compliance declaration to MAS. Good governance means documented investment decisions, a clear separation between the fund and family personal spending, and retention of records for the statutory period. The Income Tax Act 1947 also imposes ordinary filing obligations on the management company, which is taxed on its fee income in the normal way.

Related guides

• Family Office Singapore Planning for Audit and XBRL
• Family office hiring under 13O / 13U / GIP — Costs and fees breakdown
• Single vs Multi-Family Office in Singapore 2026: Costs, Pros and Cons Compared

Official sources and further reading

• MAS — Fund tax incentive schemes for family offices
• IRAS — Inland Revenue Authority of Singapore
• EDB — Global Investor Programme

FAQs

Is a single family office regulated by MAS?
An SFO that manages assets only for a single family is generally exempt from licensing, but it should confirm its exemption position with MAS and keep documentation evidencing the family relationship.

What is the minimum to start a single family office in Singapore?
As a working guide, families with at least S$20,000,000 in investable assets can consider a Section 13O structure; larger pools of S$50,000,000 and above open the Section 13U route.

How long does approval take?
Incorporation is one to three working days; the MAS tax incentive application typically takes three to six months from a complete submission.

Can the family relocate at the same time?
Yes. Many families pair the SFO with residency planning, and the Global Investor Programme is one route for the principal to obtain permanent residence.

Do I need a licensed fund manager?
A single family office is usually exempt, but the enhanced-tier route and any admission of non-family investors can change that analysis, so the licensing position should be checked case by case.

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.