Sample SFO Setup Advisory & Service Agreement
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SFO Setup Advisory Agreement
Sample SFO Setup Advisory & Service Agreement
ADVISORY & SERVICE AGREEMENT
FOR SINGLE FAMILY OFFICE (SFO) ESTABLISHMENT IN SINGAPORE
This Agreement is made on this 1st day of December, 2025
BETWEEN:
The Client:
Name: [Family Name] (acting through [Authorized Representative Name])
Address: [Client's Primary Address] (Hereinafter referred to as the "Client")
AND
The Advisor:
Name: Bestar Services Pte. Ltd. (or specific legal entity)
Registration No.: 201011130K
Address: 23 New Industrial Road, #04-08 Solstice Business Center, Singapore 536209 (Hereinafter referred to as the "Advisor")
(Collectively, the "Parties" and individually, a "Party").
1. Scope of Advisory and Setup Services
The Advisor shall provide the following services (the "Services") to the Client to establish a licensed-exempt Single Family Office structure in Singapore:
1.1 SFO Structure and Planning
Advising on the optimal Dual-Entity Structure (SFO Management Company and Investment Fund Vehicle) to meet the Client's objectives for succession, governance, and tax efficiency.
Determining the appropriate fund vehicle (e.g., Singapore Private Limited Company, Limited Partnership, or Variable Capital Company (VCC)).
Providing an analysis of the eligibility requirements for the Section 13O (S13O) and Section 13U (S13U) tax incentive schemes based on the Client's proposed Assets Under Management (AUM) and investment strategy.
1.2 Entity Establishment & Corporate Secretarial
Incorporation of the SFO Management Company and the Fund Vehicle with the Accounting and Corporate Regulatory Authority (ACRA).
Provision of Nominee Director (if required and subject to separate agreement), and Corporate Secretary services for the initial setup phase.
Drafting of the Memorandum and Articles of Association (M&AA) or Constitution, shareholders’ resolutions, and necessary corporate documentation.
1.3 Regulatory Compliance & Tax Incentive Application
Preparation and submission of the MAS Exemption Notification (or application for a licensing exemption) under the Securities and Futures Act (SFA).
Preparation and submission of the formal application to the Monetary Authority of Singapore (MAS) and the Inland Revenue Authority of Singapore (IRAS) for the selected tax incentive scheme (S13O or S13U).
Coordinating with external legal counsel (where required) to obtain the necessary Legal Opinion supporting the SFO's licensing exemption.
Advising on the requirements for Investment Professionals (IPs) and assisting with the initial application for Employment Passes (EPs) for foreign IPs to meet the S13O/S13U economic substance criteria.
2. Fees and Payment Terms
2.1 Fixed Setup Fees
The Client shall pay the Advisor a fixed fee for the Services as detailed in Schedule A (The Fee Schedule).
Service Component | Fixed Fee (S$) | Notes on Service Scope |
SFO Structuring & Planning (Incl. MAS/Tax analysis) | $15,000 – $25,000 | Advisory on Dual-Entity structure (SFO Management Co. & Fund), jurisdiction, and eligibility for S13O/S13U. |
Entity Incorporation (Dual-Entity Setup) | $5,000 – $10,000 | Incorporation of two entities (Manager and Fund) with ACRA, including drafting of core corporate documents (Constitution, resolutions, etc.). |
S13O/S13U Tax Incentive Application | $45,000 – $90,000+ | Preparation, filing, and liaison with MAS/IRAS for the chosen scheme. The complexity (e.g., VCC structure, novel assets) drives the higher end. |
Employment Pass (EP) Application (Per IP) | $1,500 – $2,500 | Professional service fee for assessing, preparing, and submitting the application to MOM for each Investment Professional (IP). |
Total Professional Setup Fee | $66,500 – $127,500+ | This is the Advisor's fee only. It excludes all third-party and government charges (see Note 1). |
2.2 Payment Schedule
Milestone | Payment (%) | Due Date |
Upon Signing of this Agreement | 50% | Date of Signing |
Upon successful Entity Incorporation of both entities | 30% | Within 7 days of ACRA registration |
Upon submission of MAS Tax Incentive Application | 20% | Within 7 days of submission |
2.3 Disbursements and Expenses
The Client shall reimburse the Advisor for all reasonable, pre-approved third-party costs and disbursements, including, but not limited to:
ACRA incorporation fees and Annual Return fees.
MAS application/notification fees.
External legal counsel fees for the Legal Opinion.
Immigration fees (e.g., EP application fees).
3. Obligations of the Parties
3.1 Advisor's Obligations
To perform the Services with reasonable skill, care, and diligence, and in a timely and professional manner.
To maintain strict confidentiality regarding all Client information.
To provide the Client with regular status updates on the incorporation and application process.
3.2 Client's Obligations
To provide the Advisor with all required documents (e.g., source of wealth declarations, corporate due diligence documents, financial statements) promptly.
To ensure all information provided to the Advisor for regulatory submissions is true, accurate, and complete.
To make all payments of fees and disbursements as per the agreed schedule.
4. Term and Termination
Term: This Agreement shall commence on the date first written above and shall continue until the later of: (a) the successful incorporation of both SFO entities, or (b) the submission of the MAS Tax Incentive Application, unless earlier terminated.
Termination: Either Party may terminate this Agreement by giving thirty (30) days written notice to the other Party in the event of a material breach of this Agreement that is not remedied within the notice period.
5. Confidentiality, Indemnity, and Governing Law
5.1 Confidentiality
The Parties agree that all information shared during the performance of the Services, including the Client's financial data, family structure, and the terms of this Agreement, shall be kept strictly confidential and shall not be disclosed to any third party without the other Party's prior written consent, except as required by law or regulatory authorities.
5.2 Indemnity
The Client agrees to indemnify and hold harmless the Advisor against any and all claims, liabilities, costs, and expenses (including legal fees) arising from any false, inaccurate, or misleading information provided by the Client for the purpose of the SFO setup and regulatory applications.
5.3 Governing Law and Jurisdiction
This Agreement shall be governed by and construed in accordance with the laws of Singapore. The Parties agree to submit to the exclusive jurisdiction of the Courts of Singapore for the resolution of any disputes arising under this Agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
The Client (Family Representative) | The Advisor (Bestar Services Pte. Ltd.) |
Signature: [Signature] | Signature: [Signature] |
Name: [Printed Name] | Name: Roger Pay |
Title: [Title, e.g., Authorized Signatory] | Title: CEO |
SCHEDULE A: Tax Incentive Scheme Requirements (for Reference)
Criteria | Section 13O (SFO Fund) | Section 13U (SFO Fund) |
Minimum AUM (in Designated Investments) | S$20 million (at application & maintained) | S$50 million (at application & maintained) |
Investment Professionals (IPs) | Minimum 2 (at least 1 non-family member) | Minimum 3 (at least 1 non-family member) |
Local Business Spending (LBS) | Tiered (min S$200,000/year for AUM < S$250M) | Tiered (min S$200,000/year for AUM < S$250M) |
🌟 Premier Single Family Office (SFO) Setup in Singapore: Securing Your Legacy with Bestar
Sample SFO Setup Advisory & Service Agreement
Unlock Global Wealth Management: Singapore SFO & Tax Incentive Experts
As a leading corporate and financial advisor in Singapore, Bestar specializes in the end-to-end setup and long-term compliance of Single Family Offices (SFOs). We help global ultra-high-net-worth families establish a robust, tax-efficient, and compliant wealth management hub in Asia's financial capital.
Why Choose Singapore for Your Family Office?
Singapore offers unparalleled stability, a pro-business regulatory environment, and world-class tax incentives, making it the ideal jurisdiction for wealth preservation and succession planning.
Political Stability: Strong legal framework and protection of private assets.
Tax Efficiency: Access to fund tax exemptions on investment income.
Gateway to Asia: Strategic location for managing regional investments.
Talent Pool: Access to a deep pool of finance and legal professionals.
Our End-to-End SFO Setup Service: Section 13O & 13U Specialists
Bestar provides a holistic, single-point-of-contact solution for SFO establishment, focused on achieving and maintaining the coveted fund tax exemption status.
1. Optimal Structure & Tax Strategy (Targeting: 13O Setup, 13U Application, SFO Structure)
We design a bespoke Dual-Entity Structure (SFO Manager and Fund Vehicle) and guide you through the latest Monetary Authority of Singapore (MAS) requirements.
Fund Structuring: Advising on the best legal vehicle (e.g., Singapore Private Limited Company, Variable Capital Company (VCC), or Limited Partnership) to meet your investment mandate.
MAS Incentive Application: Expert preparation and submission for the Section 13O (S13O) (S$20M AUM minimum) or Section 13U (S13U) (S$50M AUM minimum) fund tax exemption schemes.
Compliance Pre-Assessment: Conducting a thorough check against MAS criteria, including the mandatory Screening Report process, before formal submission.
2. Economic Substance & Personnel
Compliance with Singapore’s economic substance requirements is non-negotiable for tax incentive approval.
Investment Professionals (IPs): Advising on the minimum IP headcount (2 IPs for S13O; 3 IPs for S13U) and drafting compliant job descriptions.
Work Pass Services: Full management of Employment Pass (EP) applications for foreign Investment Professionals and family principals to ensure your team meets the residency and salary thresholds.
3. Ongoing Compliance & Virtual Family Office (VFO)
The tax exemption requires continuous compliance. We act as your Virtual Family Office (VFO) to handle the day-to-day administrative burden.
Service | Description | Compliance Focus |
Corporate Secretarial | Statutory filings with ACRA, maintenance of registers, and governance. | Ensures the Management Co. remains in good standing. |
Accounting & Bookkeeping | Meticulous tracking of Designated Investments and Fund performance. | Verifies the Assets Under Management (AUM) requirement. |
Tax Filing & LBS Management | Annual tax submission and proactive planning to meet the Local Business Spending (LBS) requirement (min S$200,000). | Secures the continuity of the S13O/S13U tax exemption. |
Why Partner with Bestar Singapore?
Licensed Experts: We are licensed to submit work pass applications and possess deep expertise in MAS and IRAS regulations.
Integrated Solutions: We combine corporate setup, tax advisory, and ongoing compliance services into a seamless, cost-effective package.
Dedicated Team: Your SFO project is managed by dedicated specialists with a track record of successful tax incentive approvals.
Ready to establish your wealth management hub in Singapore?
Contact Bestar Singapore today for a confidential consultation on your SFO structuring needs.
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