Family Office
A family office’s main goal is to fulfil the family’s multi-generation goals. A Single Family Office (SFO) is a professional private investment and wealth entity designed to oversee the day-to-day administration and management. An SFO invests a family’s financial assets and offers additional services only to family members and can serve as a platform to discuss their private investment matters.
The services provided by SFO includes:
- Investment and Wealth Management
– Investment Policy
– Asset Allocation and Management
– Benchmarking and Review
– Risk Management
- Estate Planning
– Succession Planning
– Liquidity Planning
– Family Governance
– Wealth Transfer Planning
- Philanthropy
– Mission
– Implementation
– Assessment of Impact
– Project Management
- Advisory and Administrative Services
– Concierge Services
– Consolidation and Accounting
– Legal, Trust and Tax Services
– Operations
Below are some of the key benefits of SFO:
- Corporate Governance
- Risk management through centralisation of assets
- Centralisation of advisory and administrative services
- Licensing exemptions
- Economies of scale
- Immigration
- Uniting the family with common goals
- Participation of family members
- Higher yields with flexibility to deploy liquid assets
- Tax exemptions
Comparison of Tax Exemption Schemes
| Section 13O (Formerly The Onshore Fund Tax Exemption Scheme) | Section 13U (Formerly The Enhanced Tier Fund Tax Exemption Scheme) | |
| Legal Form of Asset Holding Entity / Fund Entity | Company incorporated in Singapore | All legal forms |
| Jurisdiction of Incorporation of Asset Holding Entity / Fund Entity | Singapore | Offshore or Singapore |
| Investors of Asset Holding Entity / Fund Entity | 100% of the value of the issued securities of a 13O fund can be held by Singapore persons. There is the “Qualifying Investor”1 test which imposes a penalty on certain non-individual Singapore investors exceeding a prescribed threshold | No restrictions |
| Managed by Singapore based Fund Manager |
Yes, with the following conditions. Single Family Office needs: 1. To hold a Capital Markets Services (CMS) license from Singapore Securities and Futures Act; or 2. To register as a fund manager under the Singapore Securities and Futures Act; or 3. To be specifically exempt under that Act from holding such a CMS license for fund management i.e. related corporation exemption |
|
| Fund Administrator | Singapore-based | Singapore-based if the fund is a Singapore-incorporated and resident company |
| Prior MAS approval for Tax Exemption Scheme required | Yes No change in investment strategy allowed after approval |
|
| Exemption restricted to “specified income” from designated investments | Yes | |
| Use of Singapore tax treaties | Yes | Depends |
| Minimum Assets under Management (AUM) | Minimum of S$10 million at application (net of leverage) and commits to increasing to S$20 million within a 2 year period | Minimum of S$50 million (net of leverage) |
| Minimum Annual Business Spending (includes remuneration, management fees and other operating costs) |
AUM below S$50 million, S$200k business spending AUM equal or more than S$50 million but less than S$100 million, S$500k business spending AUM equal or more than S$100 million, S$1 million business spending |
AUM equal or more than S$50 million but less than S$100 million, S$500k local business spending AUM equal or more than S$100 million, S$1 million local business spending |
| Minimum number of experienced investment professionals |
2 investment professionals2 If the requirement of 2 investment professionals cannot be met upon application, the SFO would be given a 1-year grace period to employ the 2nd investment professional |
3 investment professionals with at least 1 being a non-family member If the requirement of 1 non-family member investment professional cannot be met upon application, the SFO would be given a 1-year grace period |
| Local Investment Requirement | Invest at least 10% or S$10 million of AUM (whichever is lower) in local investments3 by the point of application or within 1-year grace period | |
| Income Tax Filings | Annual tax return needs to be filed with IRAS | Annual tax return needs to be filed with IRAS |
| Compliance Requirement | Annual Statements to Investors, Tax filing to Inland Revenue of Singapore (IRAS) for non-qualifying investors Annual declaration to MAS |
Annual declaration to MAS |
1. A non-qualifying investor is a non-individual Singapore investor that (along with its associates) invests more than 30% / 50% in a 13O fund entity. Non-qualifying investors are subject to penalty which is reported in the non-qualifying investor’s own Singapore income tax returns.
2 .Investment professionals refer to portfolio managers, research analysts and traders who are earning more than S$3,500 per month and must be engaging substantially in the qualifying activity. The individual has to be a Singapore tax resident to be considered an investment professional.
3. These may include (i) equities listed on Singapore-licensed exchanges, (ii) qualifying debt securities, (iii) funds distributed by Singapore-licensed/registered fund managers, (iv) private equity investments into non-listed Singapore-incorporated companies (e.g. start-ups) with operating business(es) in Singapore.
What is a Private Trust?
A trust is a legal arrangement that allows an individual (known as the settlor) to place their assets such that an appointed trustee can administer and manage them for the benefit of others (your beneficiaries). A private family trust is typically created to assist a high net worth individual in the preservation of assets and the smooth transfer of assets to future generations. Trusts provide continuity in the management of assets, particularly if a company (rather than an individual) is selected as the trustee. A trust that has been set up properly offers asset protection and can offer family members benefits that last for several generations.
Assets can include real estate, cash, stocks, businesses, antiques, artworks etc. and beneficiaries can include family members, friends or charitable organisations.
Below are some of the key benefits that the Singapore’s trust framework provides:
- No requirement for formal registration of Singapore trusts
- Strict confidentiality and banking secrecy laws
- Settlors are protected from forced heirship claims
- A Settlor is free to reserve to himself any or all the powers of investment or asset management functions; thereby retaining an active role in managing the investments of the trust
- Settlors can appoint another person (known as a protector) to supervise the conduct of the trustees
- No estate duty or inheritance tax
- No capital gains tax
- Income tax mitigation for foreign trusts
Private Banks
Private banks normally designate a chief representative for each customer, but they may also employ a team approach to provide clients access to a variety of financial products, obtain access to a variety of investment products and services, and have privileged access to private equity opportunities.
Solutions and Specialist Access
- Capital Market Solutions
– Mergers & Acquisitions
– Equity Capital Markets
– Debt Capital Markets
- Corporate Banking
– Cash Management
– Trade Financing
– Credit Facilities
– Bespoke Solutions
– Segment Expertise
- Credit Services
– Bespoke Mortgage Solutions
– Structured Financing
– Premium Financing on Insurance Policies
– Personal Credit
– Private Credit
- Corporate Wealth Management
– Discretionary Portfolio Management
– Equities
– Bonds
– Investment Funds
– Structured Products
– Chief Investment Office (CIO) Flagship Solutions
- Insights and Expertise
– Latest market insights from our CIO at your fingertips
A family office’s main goal is to fulfil the family’s multi-generation goals. A Single Family Office (SFO) is a professional private investment and wealth entity designed to oversee the day-to-day administration and management. An SFO invests a family’s financial assets and offers additional services only to family members and can serve as a platform to discuss their private investment matters.
The services provided by SFO includes:
- Investment and Wealth Management
– Investment Policy
– Asset Allocation and Management
– Benchmarking and Review
– Risk Management
- Estate Planning
– Succession Planning
– Liquidity Planning
– Family Governance
– Wealth Transfer Planning
- Philanthropy
– Mission
– Implementation
– Assessment of Impact
– Project Management
- Advisory and Administrative Services
– Concierge Services
– Consolidation and Accounting
– Legal, Trust and Tax Services
– Operations
Below are some of the key benefits of SFO:
- Corporate Governance
- Risk management through centralisation of assets
- Centralisation of advisory and administrative services
- Licensing exemptions
- Economies of scale
- Immigration
- Uniting the family with common goals
- Participation of family members
- Higher yields with flexibility to deploy liquid assets
- Tax exemptions
Comparison of Tax Exemption Schemes
| Section 13O (Formerly The Onshore Fund Tax Exemption Scheme) | Section 13U (Formerly The Enhanced Tier Fund Tax Exemption Scheme) | |
| Legal Form of Asset Holding Entity / Fund Entity | Company incorporated in Singapore | All legal forms |
| Jurisdiction of Incorporation of Asset Holding Entity / Fund Entity | Singapore | Offshore or Singapore |
| Investors of Asset Holding Entity / Fund Entity | 100% of the value of the issued securities of a 13O fund can be held by Singapore persons. There is the “Qualifying Investor”1 test which imposes a penalty on certain non-individual Singapore investors exceeding a prescribed threshold | No restrictions |
| Managed by Singapore based Fund Manager |
Yes, with the following conditions. Single Family Office needs: 1. To hold a Capital Markets Services (CMS) license from Singapore Securities and Futures Act; or 2. To register as a fund manager under the Singapore Securities and Futures Act; or 3. To be specifically exempt under that Act from holding such a CMS license for fund management i.e. related corporation exemption |
|
| Fund Administrator | Singapore-based | Singapore-based if the fund is a Singapore-incorporated and resident company |
| Prior MAS approval for Tax Exemption Scheme required | Yes No change in investment strategy allowed after approval |
|
| Exemption restricted to “specified income” from designated investments | Yes | |
| Use of Singapore tax treaties | Yes | Depends |
| Minimum Assets under Management (AUM) | Minimum of S$10 million at application (net of leverage) and commits to increasing to S$20 million within a 2 year period | Minimum of S$50 million (net of leverage) |
| Minimum Annual Business Spending (includes remuneration, management fees and other operating costs) |
AUM below S$50 million, S$200k business spending AUM equal or more than S$50 million but less than S$100 million, S$500k business spending AUM equal or more than S$100 million, S$1 million business spending |
AUM equal or more than S$50 million but less than S$100 million, S$500k local business spending AUM equal or more than S$100 million, S$1 million local business spending |
| Minimum number of experienced investment professionals |
2 investment professionals2 If the requirement of 2 investment professionals cannot be met upon application, the SFO would be given a 1-year grace period to employ the 2nd investment professional |
3 investment professionals with at least 1 being a non-family member If the requirement of 1 non-family member investment professional cannot be met upon application, the SFO would be given a 1-year grace period |
| Local Investment Requirement | Invest at least 10% or S$10 million of AUM (whichever is lower) in local investments3 by the point of application or within 1-year grace period | |
| Income Tax Filings | Annual tax return needs to be filed with IRAS | Annual tax return needs to be filed with IRAS |
| Compliance Requirement | Annual Statements to Investors, Tax filing to Inland Revenue of Singapore (IRAS) for non-qualifying investors Annual declaration to MAS |
Annual declaration to MAS |
1. A non-qualifying investor is a non-individual Singapore investor that (along with its associates) invests more than 30% / 50% in a 13O fund entity. Non-qualifying investors are subject to penalty which is reported in the non-qualifying investor’s own Singapore income tax returns.
2 .Investment professionals refer to portfolio managers, research analysts and traders who are earning more than S$3,500 per month and must be engaging substantially in the qualifying activity. The individual has to be a Singapore tax resident to be considered an investment professional.
3. These may include (i) equities listed on Singapore-licensed exchanges, (ii) qualifying debt securities, (iii) funds distributed by Singapore-licensed/registered fund managers, (iv) private equity investments into non-listed Singapore-incorporated companies (e.g. start-ups) with operating business(es) in Singapore.
What is a Private Trust?
A trust is a legal arrangement that allows an individual (known as the settlor) to place their assets such that an appointed trustee can administer and manage them for the benefit of others (your beneficiaries). A private family trust is typically created to assist a high net worth individual in the preservation of assets and the smooth transfer of assets to future generations. Trusts provide continuity in the management of assets, particularly if a company (rather than an individual) is selected as the trustee. A trust that has been set up properly offers asset protection and can offer family members benefits that last for several generations.
Assets can include real estate, cash, stocks, businesses, antiques, artworks etc. and beneficiaries can include family members, friends or charitable organisations.
Below are some of the key benefits that the Singapore’s trust framework provides:
- No requirement for formal registration of Singapore trusts
- Strict confidentiality and banking secrecy laws
- Settlors are protected from forced heirship claims
- A Settlor is free to reserve to himself any or all the powers of investment or asset management functions; thereby retaining an active role in managing the investments of the trust
- Settlors can appoint another person (known as a protector) to supervise the conduct of the trustees
- No estate duty or inheritance tax
- No capital gains tax
- Income tax mitigation for foreign trusts
Private Banks
Private banks normally designate a chief representative for each customer, but they may also employ a team approach to provide clients access to a variety of financial products, obtain access to a variety of investment products and services, and have privileged access to private equity opportunities.
Solutions and Specialist Access
- Capital Market Solutions
– Mergers & Acquisitions
– Equity Capital Markets
– Debt Capital Markets
- Corporate Banking
– Cash Management
– Trade Financing
– Credit Facilities
– Bespoke Solutions
– Segment Expertise
- Credit Services
– Bespoke Mortgage Solutions
– Structured Financing
– Premium Financing on Insurance Policies
– Personal Credit
– Private Credit
- Corporate Wealth Management
– Discretionary Portfolio Management
– Equities
– Bonds
– Investment Funds
– Structured Products
– Chief Investment Office (CIO) Flagship Solutions
- Insights and Expertise
– Latest market insights from our CIO at your fingertips
A family office’s main goal is to fulfil the family’s multi-generation goals. A Single Family Office (SFO) is a professional private investment and wealth entity designed to oversee the day-to-day administration and management. An SFO invests a family’s financial assets and offers additional services only to family members and can serve as a platform to discuss their private investment matters.
The services provided by SFO includes:
- Investment and Wealth Management
– Investment Policy
– Asset Allocation and Management
– Benchmarking and Review
– Risk Management
- Estate Planning
– Succession Planning
– Liquidity Planning
– Family Governance
– Wealth Transfer Planning
- Philanthropy
– Mission
– Implementation
– Assessment of Impact
– Project Management
- Advisory and Administrative Services
– Concierge Services
– Consolidation and Accounting
– Legal, Trust and Tax Services
– Operations
Below are some of the key benefits of SFO:
- Corporate Governance
- Risk management through centralisation of assets
- Centralisation of advisory and administrative services
- Licensing exemptions
- Economies of scale
- Immigration
- Uniting the family with common goals
- Participation of family members
- Higher yields with flexibility to deploy liquid assets
- Tax exemptions
Comparison of Tax Exemption Schemes
| Section 13O (Formerly The Onshore Fund Tax Exemption Scheme) | Section 13U (Formerly The Enhanced Tier Fund Tax Exemption Scheme) | |
| Legal Form of Asset Holding Entity / Fund Entity | Company incorporated in Singapore | All legal forms |
| Jurisdiction of Incorporation of Asset Holding Entity / Fund Entity | Singapore | Offshore or Singapore |
| Investors of Asset Holding Entity / Fund Entity | 100% of the value of the issued securities of a 13O fund can be held by Singapore persons. There is the “Qualifying Investor”1 test which imposes a penalty on certain non-individual Singapore investors exceeding a prescribed threshold | No restrictions |
| Managed by Singapore based Fund Manager |
Yes, with the following conditions. Single Family Office needs: 1. To hold a Capital Markets Services (CMS) license from Singapore Securities and Futures Act; or 2. To register as a fund manager under the Singapore Securities and Futures Act; or 3. To be specifically exempt under that Act from holding such a CMS license for fund management i.e. related corporation exemption |
|
| Fund Administrator | Singapore-based | Singapore-based if the fund is a Singapore-incorporated and resident company |
| Prior MAS approval for Tax Exemption Scheme required | Yes No change in investment strategy allowed after approval |
|
| Exemption restricted to “specified income” from designated investments | Yes | |
| Use of Singapore tax treaties | Yes | Depends |
| Minimum Assets under Management (AUM) | Minimum of S$10 million at application (net of leverage) and commits to increasing to S$20 million within a 2 year period | Minimum of S$50 million (net of leverage) |
| Minimum Annual Business Spending (includes remuneration, management fees and other operating costs) |
AUM below S$50 million, S$200k business spending AUM equal or more than S$50 million but less than S$100 million, S$500k business spending AUM equal or more than S$100 million, S$1 million business spending |
AUM equal or more than S$50 million but less than S$100 million, S$500k local business spending AUM equal or more than S$100 million, S$1 million local business spending |
| Minimum number of experienced investment professionals |
2 investment professionals2 If the requirement of 2 investment professionals cannot be met upon application, the SFO would be given a 1-year grace period to employ the 2nd investment professional |
3 investment professionals with at least 1 being a non-family member If the requirement of 1 non-family member investment professional cannot be met upon application, the SFO would be given a 1-year grace period |
| Local Investment Requirement | Invest at least 10% or S$10 million of AUM (whichever is lower) in local investments3 by the point of application or within 1-year grace period | |
| Income Tax Filings | Annual tax return needs to be filed with IRAS | Annual tax return needs to be filed with IRAS |
| Compliance Requirement | Annual Statements to Investors, Tax filing to Inland Revenue of Singapore (IRAS) for non-qualifying investors Annual declaration to MAS |
Annual declaration to MAS |
1. A non-qualifying investor is a non-individual Singapore investor that (along with its associates) invests more than 30% / 50% in a 13O fund entity. Non-qualifying investors are subject to penalty which is reported in the non-qualifying investor’s own Singapore income tax returns.
2 .Investment professionals refer to portfolio managers, research analysts and traders who are earning more than S$3,500 per month and must be engaging substantially in the qualifying activity. The individual has to be a Singapore tax resident to be considered an investment professional.
3. These may include (i) equities listed on Singapore-licensed exchanges, (ii) qualifying debt securities, (iii) funds distributed by Singapore-licensed/registered fund managers, (iv) private equity investments into non-listed Singapore-incorporated companies (e.g. start-ups) with operating business(es) in Singapore.
What is a Private Trust?
A trust is a legal arrangement that allows an individual (known as the settlor) to place their assets such that an appointed trustee can administer and manage them for the benefit of others (your beneficiaries). A private family trust is typically created to assist a high net worth individual in the preservation of assets and the smooth transfer of assets to future generations. Trusts provide continuity in the management of assets, particularly if a company (rather than an individual) is selected as the trustee. A trust that has been set up properly offers asset protection and can offer family members benefits that last for several generations.
Assets can include real estate, cash, stocks, businesses, antiques, artworks etc. and beneficiaries can include family members, friends or charitable organisations.
Below are some of the key benefits that the Singapore’s trust framework provides:
- No requirement for formal registration of Singapore trusts
- Strict confidentiality and banking secrecy laws
- Settlors are protected from forced heirship claims
- A Settlor is free to reserve to himself any or all the powers of investment or asset management functions; thereby retaining an active role in managing the investments of the trust
- Settlors can appoint another person (known as a protector) to supervise the conduct of the trustees
- No estate duty or inheritance tax
- No capital gains tax
- Income tax mitigation for foreign trusts
Private Banks
Private banks normally designate a chief representative for each customer, but they may also employ a team approach to provide clients access to a variety of financial products, obtain access to a variety of investment products and services, and have privileged access to private equity opportunities.
Solutions and Specialist Access
- Capital Market Solutions
– Mergers & Acquisitions
– Equity Capital Markets
– Debt Capital Markets
- Corporate Banking
– Cash Management
– Trade Financing
– Credit Facilities
– Bespoke Solutions
– Segment Expertise
- Credit Services
– Bespoke Mortgage Solutions
– Structured Financing
– Premium Financing on Insurance Policies
– Personal Credit
– Private Credit
- Corporate Wealth Management
– Discretionary Portfolio Management
– Equities
– Bonds
– Investment Funds
– Structured Products
– Chief Investment Office (CIO) Flagship Solutions
- Insights and Expertise
– Latest market insights from our CIO at your fingertips
