Family Office
The aggregate wealth of billionaires at end 2018 is over a third higher than five years ago, with a margin of $2.2 trillion USD. The billionaire population has increased by 38.9% with 589 individuals who became billionaires for the first time. Amongst these, entrepreneurs from China have quickly risen to become the world’s second largest billionaire group and nearly one-eighth of global billionaire wealth is from China. Given the growing wealth in Asia, it is not surprising that Asian families are planning ahead and starting to institutionalise the management of their family wealth. The topic of setting up a family office has now moved from dinner conversations to actual set ups.
Why set up a family office?
成立家族办公室的意义
1. 结构简化
Structure simplification
通过整合多个 SPV 与投资实体，家族办公室以更精简、高效的架构统一管理资产，降低管理复杂度。
A family office consolidates multiple SPVs into a streamlined structure, improving efficiency and reducing operational complexity.
2. 提升管理效率
Operational efficiency
集中资产管理与决策流程，减少跨司法辖区的重复合规与行政成本。
Centralised decision-making and asset management reduce administrative burden and cross-jurisdictional inefficiencies.
3. 税务与合规透明度
Tax and compliance transparency
更清晰的资产架构有助于改善税务申报、合规管理，并降低监管与舆论风险。
A clearer ownership structure enhances tax reporting, compliance, and mitigates regulatory and reputational risks.
4. 投资管理内化
In-sourcing investment management
家族可将投资管理职能内化，增强对资产配置与风险管理的控制力。
Families can in-source investment management to gain greater control over asset allocation and risk management.
5. 家族传承与治理
Succession planning and governance
制度化的家族办公室结构有助于实现长期财富传承与代际治理。
An institutionalised family office supports long-term succession planning and intergenerational governance.
How is Singapore poised for this trend?
Singapore has increasingly become the jurisdiction of choice for the set-up of a family office and family funds. It meets the criteria that many families are looking for, including:
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has a strong regulatory framework;
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has an established financial services industry and well-developed infrastructure;
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has stable and pro-business Government policies;
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is highly regarded for transparency;
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where the family has existing private banking relationships;
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where there is availability of skilled labour force and talent pool; and
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where the family office and the investment teams can be established and operate (in other words, where substance exists).
The trend of family offices is only expected to grow and Singapore is well poised to be home base for these family offices. The simplicity, efficiency, clarity of succession and cost reduction associated with setting up a family office isn’t just for billionaires.
Factors to consider when establishing a Family Office
Each High NetWorth (HNW) family will have specific needs and objectives for establishing a family office. There is no generic family office structure and each family office has to be customised according to the requirements of the family, taking into consideration the various factors, such as:
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the objectives for setting up the family office
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the types of assets that will be injected into the family office
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the investment strategy and mandate for the family office
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the regulatory requirements and tax incentives available
To promote the asset management industry and encourage the establishment of family offices, Singapore has introduced various tax incentive schemes that are available to both the family office and the investment fund.
How we can help you
As a full-suite corporate business solutions provider, we have the expertise to support family offices and help HNWIs and their families to use Singapore as their base to manage their wealth.
The services we offer include:
Setting up and Implementation
We will discuss with you your needs and objectives before proposing a structure that best supports the family office’s future immediate and future plans. We will explain the requirements and key considerations so that you are able to make informed decisions when selecting the optimal structure.
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Advice on the appropriate structure for the family office
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Advice on the regulatory requirements
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Assist in tax planning, migration and re-domiciliation matters
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Set up of corporate entities of the family office
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Assist in obtaining tax incentives and liaising with the relevant government authorities
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Transfer pricing analysis for the management services rendered by the family office
Ongoing Operations
We have dedicated teams that are well-equipped to support you in all aspects of the day-to-day needs of the family office. These include:
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Annual tax filing for trusts, funds and the family office
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Annual tax filing of individual tax returns for family members and employees of the family office
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Attending to queries from the tax authorities and other government authorities
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Annual declaration for tax incentives
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Assist in tax reporting matters in respect of Common Reporting Standards and FATCA
Ad hoc Consultancy
We provide support to help you assess new investment opportunities and the optimal acquisition structure. We also provide transactional advice so that you are aware of the different implications and are able to make well-considered decisions.
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Transaction advisory
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Financial and tax due diligence
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Cash flow forecast and projections
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Valuation
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Tax advice on the following areas:
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Cross border tax planning
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Structuring – choice of location and types of investment vehicles
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Treaty analysis
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Asset transfers
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Repatriation and distribution of income/ profits
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In-country tax analysis
We regularly work with preferred service providers and therefore, to the extent your family office requires services not offered by us, we are able to work with our partners so that you are able to enjoy an integrated “one-stop-shop” service.