A family office is a privately owned entity created by one or more high-net-worth families to handle their wealth management, investments, governance, succession planning and sometimes philanthropic endeavours. Singapore is rapidly gaining ground as a global hub for family offices thanks to its strategic location in Asia, strong regulatory and legal framework, and appealing business incentives.
In this article, we will explore what a family office is, the key benefits of setting one up in Singapore, how to set one up, the challenges to watch out for, the emerging opportunities in the landscape, and why upskilling matters in this sector.
Key Characteristics and Functions
- Single-family office (SFO) vs multi-family office (MFO): An SFO serves only one family’s wealth, while an MFO caters to the needs of multiple families under a shared platform
- Holistic wealth management: Covers investments such as public and private markets, real estate, tax and legal structuring, estate and succession planning, and risk oversight
- Governance and legacy planning: Involves drafting a family constitution, educating next-generation members and overseeing philanthropic or impact-driven activities
- Operational and administrative support: The family office handles reporting, bookkeeping, compliance, lifestyle or concierge services for the family’s needs
- Dedicated investment team or outsource model: A family office may employ an internal investment team, risk, legal and compliance specialists, or outsource these functions to external advisers who align with the family’s strategy
Benefits of Establishing A Family Office in Singapore
Singapore offers a highly favourable environment for family offices, combining regulatory strength, tax and business-friendly frameworks, a mature ecosystem and regional connectivity.
Mature Wealth Management Ecosystem
Singapore boasts deep private wealth capabilities, robust banking and fiduciary services, legal and tax advisory resources, and world-class infrastructure. A family office can leverage this established ecosystem instead of building everything from scratch, gaining access to top-tier service providers and professional expertise.
Rapid Growth and Hub Recognition
The number of single-family offices in Singapore exceeded 2,000 by the end of 2024, marking a significant surge in recent years. This growth underscores Singapore’s status as a leading destination for ultra-high-net-worth families seeking a regional base for long-term wealth management.
Attractive Tax and Regulatory Incentives
Singapore offers structured incentive schemes under Sections 13O and 13U of the Income Tax Act for fund and family-office vehicles. These schemes can provide tax exemptions on specific investment income, subject to meeting substance and other qualifying criteria.
Stability, Legal Certainty and Proximity to Asia
The city-state provides political and economic stability, a clear rule of law, strong protections for investors and intellectual property, and a strategic position in the Asia-Pacific region. These strengths make it a safe and practical choice for inter-generational wealth planning.
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Access to Growth Opportunities in Asia
By establishing a family office in Singapore, families gain a regional base close to some of the world’s fastest-growing economies. This allows them to manage both global and regional portfolios more effectively, diversify their investments and capitalise on Asia’s growth potential.
How To Set Up A Family Office in Singapore
Setting up a family office in Singapore involves strategic planning, legal and regulatory preparation, operational setup and continuous governance. The steps below outline the typical process:
Step 1: Define Family Objectives and Structure
Start by engaging all family stakeholders to identify key goals. Determine whether the focus is wealth preservation, capital growth, succession planning, philanthropy or a combination of these objectives.
Decide whether to create a single-family office (SFO), a multi-family office (MFO) or an outsourced management model depending on your needs and resources.
Step 2: Select Legal Entity and Tax Incentive Vehicle
Choose an appropriate legal entity such as a private limited company, a variable capital company (VCC), a trust or a fund structure. Assess eligibility for Singapore’s tax-incentive schemes such as Sections 13O or 13U and ensure the structure aligns with your investment strategy, family governance goals and compliance obligations.
Step 3: Establish Substance and Compliance Requirements
To qualify for tax incentives and ensure regulatory compliance, the family office must demonstrate adequate local substance. This includes hiring investment professionals based in Singapore, maintaining a local office, meeting business expenditure thresholds, holding a Singapore bank account and having clear governance structures. Ongoing documentation and review are also essential.
Step 4: Build Investment and Operational Infrastructure
Develop the investment framework, risk management systems, performance reporting processes, and governance and oversight mechanisms. Establish custody arrangements, back-office operations and compliance protocols. Evaluate which functions to keep in-house and which to outsource to trusted partners for efficiency and cost control.
Step 5: Hire Key Talent and Develop Governance Framework
Recruit qualified professionals in areas such as investments, legal and tax structuring, compliance, and operations. Establish a comprehensive governance charter or family constitution that outlines roles, decision-making processes, succession policies and conflict-resolution mechanisms. This framework ensures alignment and accountability within the family office.
Step 6: Monitor Performance, Review and Adapt
Once operational, review investment performance, governance effectiveness, compliance practices and regulatory updates regularly. As the family’s objectives evolve, adjust strategies, structures and processes accordingly. A continuous review cycle ensures the family office remains resilient and future-ready.
Challenges To Consider When Setting Up a Family Office
Although Singapore offers strong advantages for family offices, some challenges must be carefully managed to ensure sustainable success.
Meeting Substance and Local Spending Requirements
To benefit from Singapore’s tax incentives, family offices must meet local spending thresholds, hire Singapore-based professionals and maintain minimum levels of assets under management. Early planning, budgeting for local expenditure and engaging qualified local service providers can help meet these requirements effectively.
Regulatory and Compliance Oversight
Singapore’s regulatory landscape demands high levels of compliance, particularly in areas such as anti-money-laundering (AML), counter-terrorism financing (CTF) and transparency obligations. Families should establish robust internal controls, seek expert legal and compliance advice, and maintain accurate documentation to mitigate regulatory risks.
Cost of Establishment and Ongoing Operations
Creating a dedicated family office can be costly due to staffing, infrastructure, professional fees and compliance obligations. Families can consider starting small, outsourcing certain functions or adopting a hybrid model that combines internal staff with external experts to manage costs efficiently.
Talent and Succession Engagement
Attracting and retaining skilled professionals in investment, tax, legal and operational roles can be challenging. Aligning these professionals with the family’s values and long-term vision is equally important. Families should invest in professional development, next-generation education and clear role definitions to ensure continuity.
Regional Market and Strategic Risks
While Singapore provides access to Asia’s growth, exposure to regional economic and geopolitical fluctuations is inevitable. A well-diversified investment portfolio, robust risk management strategy and ongoing market analysis can help mitigate such risks.
Opportunities In The Evolving Landscape
The family-office sector in Singapore is evolving quickly, bringing with it new opportunities for innovation, investment and growth.
- Direct investment into Asian growth companies: Families can use Singapore as a base to access private equity and venture capital opportunities across the region
- Impact and ESG investing: Growing interest in sustainable finance and purpose-driven investment allows family offices to align capital with values
- Wealth-tech and digital infrastructure: Technology-driven reporting, governance tools and data analytics enhance transparency and operational efficiency
- Multi-family office or shared platforms: Families can share resources through multi-family office models to reduce costs while maintaining personalised strategies
- Philanthropy and legacy innovation: Integrating philanthropy and legacy planning provides families with meaningful ways to create long-term impact
Upskilling For The Family Office Sector
As Singapore’s family-office ecosystem expands, demand for professionals with expertise in investment, governance, compliance and family dynamics continues to grow.
- Enhanced governance and advisory capability: Training ensures professionals can support complex family structures and governance frameworks
- Regulatory and compliance competence: Keeping up with Singapore’s evolving regulatory environment is essential for maintaining compliance and reputation
- Next-generation and succession-planning literacy: Understanding family dynamics, wealth education and leadership transition adds long-term stability
- Impact and ESG investment knowledge: With rising interest in sustainable finance, professionals benefit from expertise in ESG frameworks and impact assessment
For those seeking formal training, SMU Academy offers relevant courses:
- Family Office Advisor
- Navigating Wealth Management: External Asset Management and Family Offices in the Digital Age
The Future of Family Offices in Singapore
Establishing a family office in Singapore provides access to a stable, globally connected wealth management hub with supportive tax and regulatory frameworks. However, success depends on clear planning, effective governance and cost-conscious execution. As Singapore strengthens its position as a family-office centre, families must stay agile through strong leadership, compliance and continuous learning.
If you are looking to deepen your expertise and learn how to set up a family office in Singapore, SMU Academy offers a range of courses designed for this dynamic sector.
