Family offices serve as dedicated entities for managing the wealth of high-net-worth families, providing comprehensive services that extend beyond traditional investment management. A Single Family Office (SFO) focuses exclusively on one family's assets, offering tailored solutions for wealth preservation, growth, succession planning, philanthropy, and lifestyle management.

Singapore has emerged as a leading global hub for family offices, attracting ultra-high-net-worth individuals with its political stability, robust legal framework, strategic location in Asia, and favourable tax environment. As of end-2024, over 2,000 SFOs have been awarded tax incentives, reflecting significant growth from around 400 in 2020.

Regulatory Framework

SFOs in Singapore generally remain exempt from licensing under the Securities and Futures Act (SFA), as they manage wealth for a single family without serving third-party clients. However, following a 2023 MAS consultation and subsequent refinements, a class exemption framework now applies enhanced oversight to mitigate risks such as money laundering.

Key requirements include:

1. Notification to MAS upon commencement of operations.
2. Annual reporting obligations.
3. Maintaining bank accounts in Singapore.
4. Expanded family definition (e.g., including in-laws).

These measures ensure anti-money laundering (AML) controls while preserving operational flexibility.

Tax Incentives

Singapore offers attractive tax exemptions under Sections 13O and 13U of the Income Tax Act for qualifying fund vehicles managed by SFOs. These schemes, extended to 31 December 2029, provide tax relief on specified income from designated investments.

Eligibility involves meeting tiered criteria, refined in recent years (with updates effective 2025):

1. Minimum Assets Under Management (AUM) based on Designated Investments.
2. Local Business Spending (LBS) thresholds.
3. Employment of investment professionals (typically 2–3, with at least one non-family member and tax-resident in Singapore).
4. Capital deployment into local equities, climate-related investments, or other qualifying assets (with multipliers available).

Additional incentives include the Philanthropy Tax Incentive Scheme (launched 2023) for donations and alignments with the Global Investor Programme (GIP), which requires significant deployment into Singapore-listed equities for new applicants.

Processing times for tax incentive applications have improved significantly, targeting approvals within three months.

Benefits of Establishing a Family Office in Singapore

1. Wealth Preservation and Growth — Access to Asia's dynamic markets and a comprehensive ecosystem of private banks, trusts, and professional services.
2. Succession and Governance — Structured planning for intergenerational wealth transfer.
3. Philanthropy and Impact — Growing support for sustainable and social initiatives.
4. Privacy and Stability — Strong rule of law and confidentiality protections.

For families considering a Singapore-based SFO, professional advice is essential to navigate the evolving regulatory and tax landscape effectively. Contact AnC to explore how we can support your family office setup.