Complete Guide to Setting Up a Single Family Office (SFO) in Singapore
Complete Guide to Setting Up a Single Family Office (SFO) in Singapore
Quick Answers / Snippets
What is the minimum AUM to set up a Single Family Office (SFO) tax incentive scheme in Singapore?
Section 13O (Onshore Fund): Minimum Assets Under Management (AUM) of S$20 million.
Section 13U (Enhanced-Tier Fund): Minimum Assets Under Management (AUM) of S$50 million.
How many investment professionals are required for a Singapore SFO?
13O Scheme: At least 2 investment professionals.
13U Scheme: At least 3 investment professionals.
What are the local business spending requirements for Singapore family offices?
Both 13O and 13U schemes require tiered local business spending, with a minimum of S$200,000 in Local Business Spending (LBS) per year, depending on AUM scale.
How long does ACRA business incorporation take in Singapore?
Registering your SFO and fund entity online through ACRA’s BizFile portal typically takes 1 to 3 working days.
Overview: Why Set Up a Single Family Office in Singapore?
Singapore has established itself as a premier global wealth management and family office hub. Backed by a robust rule of law, political stability, top-tier infrastructure, and clear tax certainty, Singapore attracts ultra-high-net-worth individuals and global families looking to future-proof their wealth, manage succession planning, and drive impactful philanthropy across Asia.
This guide outlines the 5-step process to set up a Single Family Office (SFO) in Singapore, aligned with the Singapore Economic Development Board (EDB) and the Monetary Authority of Singapore (MAS) guidelines.
Step 1: Determine Your SFO’s Mandate & Structure
Every family office is bespoke, designed around the unique goals of the family. Before registering entities, align on your core mandate:
Wealth Preservation & Diversification
Tax Certainty & Optimization
Succession Planning & Governance
Philanthropy & Impact Investing
Legal Structuring & Regulatory Status
Corporate Incorporation: Register your SFO operating company and fund holding vehicle online via ACRA’s BizFile portal (takes 1–3 working days).
Succession Planning: Leverage Singapore’s robust trust laws to establish family trusts if long-term asset protection and multi-generational transfer are priorities.
MAS Licensing Exemption: SFOs managing assets exclusively for a single family are typically exempt from licensing under the Securities and Futures Act (SFA). You must file a Notice of Commencement of Business with the MAS within 14 days of operations and submit annual regulatory returns.
Bank Account Opening: Open and maintain corporate accounts with a MAS-licensed bank in Singapore (or an international regulated bank compliant with FATF anti-money laundering standards for foreign fund vehicles).
Step 2: Build Your Team & Workforce
An operational SFO requires experienced leadership, robust governance, and local substance:
Board & Executive Committee: Establish professional governance to oversee investments, risk management, and compliance.
Key Professionals: Hire qualified portfolio managers, analysts, and administrative staff.
Fund Administration: Appoint a Singapore-based fund administrator to handle accounting, reporting, and regulatory filings.
Work Passes for Global Talent:
Employment Pass (EP): For executive talent and managers meeting qualifying salary thresholds (check eligibility via the MOM Self-Assessment Tool; processing time ~10 business days).
ONE Pass: A 5-year renewable personalized pass for top-tier global talent, allowing holders to concurrently start, operate, and work for multiple Singapore companies.
Step 3: Apply for Singapore Tax Incentives (Sections 13O & 13U)
Fund vehicles managed by Singapore-based SFOs can apply for tax exemptions on specified income under Sections 13O and 13U of the Income Tax Act 1947.
Comparison Table: 13O vs. 13U Tax Incentive Criteria
Criteria | Section 13O (Onshore Fund) | Section 13U (Enhanced-Tier Fund) |
|---|---|---|
Minimum AUM | S$20 million | S$50 million |
Investment Professionals | At least 2 | At least 3 |
Local Business Spending (LBS) | Tiered spending (Minimum S$200,000) | Tiered spending (Minimum S$200,000) |
Capital Deployment (Both Schemes) | Must invest the lower of S$10 million or 10% of AUM in qualifying local investments (e.g., MAS-approved exchange-listed equities/REITs/ETFs, Qualifying Debt Securities, non-listed Singapore operating companies, climate-related investments, or blended finance structures). |
Note: MAS application review outcomes typically take up to 3 months.
Philanthropy Tax Incentive Scheme (PTIS)
SFOs operating under 13O and 13U can also qualify for the Philanthropy Tax Incentive Scheme, offering a 100% tax deduction on overseas donations capped at 40% of the donor’s statutory income.
Step 4: Scale Your Portfolio & Access Asian Markets
Singapore serves as a premier gateway to vibrant venture capital, tech, and public market ecosystems across Asia:
Public Investments: Access regional equities, REITs, and ETFs via the Singapore Exchange (SGX).
Private Investments & Startups: Connect with local accelerators, venture capital firms, and tech startups via Startup SG Network, Stage One, and Singapore Growth Capital (SGGC).
Step 5: Create Social Impact Through Philanthropy
Singapore offers a trusted, structured ecosystem for family philanthropy:
Co-Funding Platforms: Partner with the Philanthropy Asia Alliance (PAA), Temasek Trust Foundation Advisors (TTFA), ImpactSG, and AVPN.
Donor-Advised Funds: Leverage the Community Foundation of Singapore for regional and local giving.
Family Foundations: Establish in-house foundations, which may qualify for support under the Ministry of Culture, Community and Youth (MCCY)’s Grantmakers Scheme.
Additional Resources & Next Steps
Family Office Landscape Navigator: Find vetted professional service providers via the Wealth Management Institute (WMI).
Global Investor Programme (GIP): For high-net-worth investors seeking Singapore Permanent Residency (PR) through business and investment growth.
Peer Networks: Connect with peers through the Global-Asia Family Office (GFO) Circle, Family Business Network Asia (FBNA), and annual GFO Summits.
To connect with the Singapore Bestar and calculate your Local Business Spending (LBS) for a Section 13O fund, follow this structured framework based on official guidelines:
1. How to Connect with Bestar
Direct Outreach: You can initiate contact with Bestar through the official portal at Bestar Global Business Families by submitting an inquiry detailing your family office profile, AUM scale, and investment focus.
Peer Networks & Summits: Engage directly with regional family office peers and agency representatives through platforms such as the Global-Asia Family Office (GFO) Circle and official EDB-supported business networking events.
2. Calculating Local Business Spending (LBS) for a Section 13O Fund
Under Section 13O, your SFO must meet tiered business spending requirements, with a minimum of S$200,000 in Local Business Spending per year, scaled according to your total Assets Under Management (AUM):
+------------------------------------+------------------------------------+
| Assets Under Management (AUM) | Minimum Local Business Spending |
+------------------------------------+------------------------------------+
| S$20 million to < S$50 million | S$200,000 |
| S$50 million to < S$100 million | S$500,000 |
| S$105 million and above | S$1,000,000 |
+------------------------------------+------------------------------------+
Qualifying Local Business Expenses Include:
Remuneration & Salaries: Local business spending on salaries, CPF contributions, and bonuses paid to investment professionals and administrative staff employed directly by the SFO entity in Singapore (excluding non-local staff based overseas).
Operational Costs & Services: Payments made to Singapore-based corporate service providers, including:
Singapore-based fund administrators and accountants.
Local legal, tax, and audit advisory fees.
Office rental expenses in Singapore and related utility costs.
Professional Fees & Training: Expenses incurred for corporate governance, compliance, and training programs conducted by Singapore-based institutions.
Bestar Singapore: Your Comprehensive Guide to Specialized Advisory, Legal Structuring & Family Office Ecosystem Navigation
Quick Answers / Voice Search Snippets
What specialized advisory services does Bestar provide in Singapore?
Bestar provides end-to-end professional services including corporate secretarial support, accounting, statutory audit (via Bestar Assurance PAC), tax advisory, business licensing, and cross-border merger and acquisition (M&A) advisory.
How does Bestar assist with legal structuring for family offices and businesses?
Bestar assists corporate clients and family groups with entity incorporation, statutory compliance, restructuring, and operational setups tailored to Singapore’s regulatory framework.
What is the Family Office Landscape Navigator?
The Family Office Landscape Navigator, managed by the Wealth Management Institute (WMI), is a premier directory connecting families with trusted professional service providers, advisory firms, and ecosystem partners in Singapore.
Overview: Navigating Singapore’s Wealth & Corporate Ecosystem
Singapore has rapidly solidified its position as Asia’s leading international financial center. For ultra-high-net-worth families, international investors, and expanding enterprises establishing a presence in Singapore requires navigating intricate legal structures, tax incentive frameworks (such as MAS Sections 13O and 13U), regulatory compliance, and corporate governance.
Collaborating with established, multi-disciplinary advisory firms like Bestar—while leveraging institutional directories like the Wealth Management Institute’s Family Office Landscape Navigator—ensures seamless setup, operational longevity, and regulatory certainty.
1. Bestar Singapore: Core Specialized Advisory & Corporate Services
Operating through its specialized corporate entities (Bestar Consulting, Bestar Services, Bestar HR Consulting, and Bestar Assurance PAC), Bestar delivers a comprehensive suite of professional services designed to support businesses and family offices at every stage of their lifecycle:
Corporate Secretarial & Compliance: Maintaining statutory registers, ensuring timely ACRA filings, and managing corporate governance standards.
Accounting & Tax Advisory: Structuring bookkeeping, GST filings, corporate tax computation, and optimizing tax exemptions under Singapore's regulatory frameworks.
Statutory Audit Services: Independent audit assurance delivered via Bestar Assurance PAC to meet institutional and regulatory standards.
Mergers & Acquisitions (M&A) Advisory: Strategic transaction support, due diligence, and valuation advisory for corporate restructuring and capital expansion.
Business Licensing & Entity Setup: Efficient navigation of regulatory approvals across Singapore, Hong Kong, and Malaysia.
2. Legal Structuring & Regulatory Alignment
Choosing the correct legal structure is critical for asset protection, operational efficiency, and tax optimization:
Entity Incorporation: Registering operating companies and fund holding vehicles digitally via ACRA’s BizFile portal.
Trust & Succession Frameworks: Leveraging Singapore's robust trust environment for multi-generational wealth preservation.
Regulatory Compliance: Adhering strictly to anti-money laundering (AML) and countering the financing of terrorism (CFT) standards aligned with Financial Action Task Force (FATF) guidelines.
3. Leveraging Ecosystem Partners & Navigators
Building a world-class family office or enterprise requires access to a trusted network of specialized partners. Two key pillars support this ecosystem in Singapore:
The Wealth Management Institute (WMI) Family Office Landscape Navigator
The Family Office Landscape Navigator, developed by WMI, serves as an authoritative directory. It connects principals and family office executives with vetted professional service providers, tax advisors, legal counsels, and wealth management specialists.
Strategic Collaboration with Bestar
By partnering with established firms like Bestar alongside ecosystem navigators, families and corporations gain:
Holistic Guidance: Integrated legal, tax, accounting, and corporate secretarial support under one roof.
Streamlined Execution: Accelerated onboarding, bank account opening coordination, and regulatory filings.
Long-Term Governance: Robust administrative frameworks that satisfy Monetary Authority of Singapore (MAS) substance and local business spending (LBS) requirements.
Conclusion
Establishing a robust presence or family office in Singapore demands meticulous planning, rigorous legal structuring, and expert advisory support. By combining Bestar’s multi-disciplinary corporate services with institutional directories like the Wealth Management Institute’s Family Office Landscape Navigator, investors can successfully navigate Singapore’s dynamic economic landscape with complete confidence and regulatory certainty.
To connect with Bestar for specialized advisory, corporate secretarial, tax planning, and legal structuring support, you can utilize their established communication channels and professional service touchpoints:
1. Direct Corporate Outreach & Consultation
Official Corporate Channels: Reach out directly through Bestar’s professional services network to schedule a consultation with their managing directors and advisory teams.
Scope of Initial Discussion: When connecting, be prepared to outline your specific requirements—whether you are looking for corporate entity incorporation, statutory audit support via Bestar Assurance PAC, tax advisory, or cross-border M&A structuring across Singapore, Hong Kong, and Malaysia.
2. Integrated Professional Services Support
Connecting with Bestar gives you direct access to their specialized operating entities:
Bestar Consulting: For corporate secretarial support, entity setup, and governance.
Bestar Services: For accounting, bookkeeping, GST, and tax advisory.
Bestar Assurance PAC: For statutory audit and independent assurance.
Bestar HR Consulting: For employment agency and work pass advisory.
To prepare your corporate documents and schedule a consultation with Bestar for entity incorporation, tax advisory, or corporate secretarial support, follow this streamlined onboarding checklist:
1. Preparation of Corporate Documents
Before your initial consultation, having the following information and documents ready will accelerate your setup across Singapore, Hong Kong, or Malaysia:
Director and Shareholder Particulars:
Full legal names, residential addresses, and passport/ID copies.
Proof of residential address (e.g., recent utility bills or bank statements).
Corporate Structure & Equity Breakdown:
Proposed company name(s).
Principal business activities (SSIC or industry classification codes).
Share capital structure, shareholding percentages, and classes of shares.
Operational Details:
Registered office address in Singapore.
Details of beneficial owners (Ultimate Beneficial Owners / UBOs) for compliance and Know Your Customer (KYC) verification.
2. How to Schedule a Consultation with Bestar
Direct Outreach: Connect directly with Bestar's professional services team across their specialized entities (Bestar Consulting, Bestar Services, and Bestar Assurance PAC) to book an appointment.
Initial Discussion Focus: During the session, you can review your corporate secretarial needs, statutory audit requirements, tax exemption eligibility, and cross-border structuring strategies with their experienced advisory team.
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