Singapore Family Office: What Is It and Who Is It For?

Aerial view of Singapore's skyline

Singapore has become one of Asia's leading hubs for family offices and wealth management. By the end of 2024, more than 2,000 single family offices had been established in Singapore, according to the Singapore Economic Development Board (EDB).

But what exactly is a family office, and who should consider setting one up?

What Is a Family Office?

A family office is a private organisation established to manage a family's wealth, investments and long-term financial interests.

Depending on the family's needs, a family office may support:

• Investment and portfolio management

• Wealth preservation

• Succession planning

• Family governance

• Philanthropy

• Coordination with legal, tax and financial advisers

A Single Family Office (SFO) is designed primarily to manage the assets and investments of one family.

Why Singapore?

Singapore is an attractive location for family offices because of its:

• Strategic position in Asia

• Strong financial and professional services ecosystem

• Stable business and legal environment

• Access to global and Asian investment opportunities

• Established wealth management industry

Singapore also provides tax incentive frameworks for qualifying investment funds, including Section 13O and Section 13U, subject to specific requirements.

Under the current framework, Section 13O generally requires a minimum S$20 million AUM, while Section 13U generally requires S$50 million AUM, together with other conditions such as investment professionals, local business spending and qualifying investment requirements.

Importantly, establishing a family office does not automatically make investment income tax-free. The relevant conditions must be satisfied.

Who Is a Family Office Suitable For?

A family office may be worth considering for families with substantial and diversified assets, particularly those with:

• Multiple investments or businesses

• Assets across different countries

• Complex succession planning needs

• A long-term investment strategy

• Multiple professional advisers to coordinate

For families with relatively simple financial arrangements, a private bank, wealth manager or multi-family office may be a more practical option.

Conclusion

A Singapore Family Office can provide families with a centralised platform to manage wealth, investments, succession planning and family governance.

However, a family office is not simply a tax-saving structure. Its suitability depends on the family's overall circumstances, objectives and the complexity of its assets.

For families considering Singapore as a base for wealth and investment management, professional advice can help determine whether a Single Family Office, private wealth management solution or another structure is most appropriate.