Singapore has become one of Asia’s premier destinations for ultra-high-net-worth families seeking a stable, transparent, and tax-efficient base for managing generational wealth. The number of single family offices approved under MAS tax incentive schemes exceeded 1,650 by the end of 2025, reflecting the city-state’s enduring appeal as a wealth hub for Asian and global families alike.
This guide covers everything a family needs to know — from choosing the right structure to obtaining MAS approval — when setting up a family office in Singapore in 2026.
What Is a Family Office?
A family office is a private entity that manages the investments, financial planning, tax structuring, and often the broader administration of a single wealthy family (a Single Family Office, or SFO) or a group of unrelated wealthy families pooling resources (a Multi-Family Office, or MFO).
In Singapore’s regulatory context, a family office typically refers to a corporate structure comprising two entities: a fund vehicle that holds the family’s assets, and a fund management company (FMC) that manages those assets and employs the investment professionals. The fund vehicle applies for one of MAS’s fund tax incentive schemes — most commonly Section 13O or Section 13U of the Income Tax Act 1947 — to exempt qualifying investment income from Singapore tax.
Why Singapore? Key Advantages for Family Offices
Singapore remains the preferred jurisdiction for Asian and global families for several compelling reasons:
- Political and legal stability: Singapore’s rule of law, independent judiciary, and transparent regulatory framework offer predictability over multi-generational time horizons.
- Extensive tax treaty network: Over 90 Double Tax Agreements (DTAs) enable treaty-protected investment structures across Asia, Europe, and beyond.
- No capital gains tax: Singapore does not impose tax on capital gains, which is highly favourable for investment portfolios.
- No estate duty: Estate duty was abolished in 2008, making Singapore a compelling inter-generational wealth transfer location.
- MAS-regulated ecosystem: A deep bench of fund administrators, trust companies, private banks, and legal counsel with experience serving complex family structures.
- VCC structure: The Variable Capital Company (VCC) framework provides a flexible, Singapore-domiciled fund vehicle that can hold multiple sub-funds with ring-fenced assets.
SFO vs MFO: Choosing Your Structure
Single Family Office (SFO)
An SFO exclusively manages the assets and affairs of a single family. It is not required to be licensed by MAS as a fund manager, provided it qualifies as an exempt fund manager under the Securities and Futures Act 2001 (SFA). The exemption applies where the FMC manages funds solely on behalf of related corporations, related trusts, or members of the same family group.
Multi-Family Office (MFO)
An MFO serves multiple unrelated families. Because it manages third-party capital, it must be licensed or registered with MAS under the SFA — either as a Registered Fund Management Company (RFMC) or as a Licensed Fund Management Company (LFMC). MFOs are subject to more extensive ongoing compliance obligations and capital requirements.
This guide focuses on the SFO structure, which is the more common route for families new to Singapore.
MAS Tax Incentive Schemes: Section 13O vs Section 13U
Both Section 13O and Section 13U of the Income Tax Act 1947 provide tax exemption on specified income — including dividends, interest, and gains from designated investments — derived by qualifying fund vehicles managed by Singapore-based family offices. MAS administers both schemes, which have been extended to 31 December 2029 with tightened conditions effective from 1 January 2025.
Full details are available on the MAS Fund Tax Incentive Scheme page.
Section 13O: Enhanced Tier (Base Scheme)
| Requirement | Details |
|---|---|
| Minimum AUM | S$20 million at application |
| Fund Vehicle | Must be a Singapore-incorporated company |
| Investment Professionals (IPs) | At least 2 IPs (1-year grace period for 2nd hire) |
| IP Minimum Salary | S$3,500/month |
| Local Business Spending | S$200,000 annually |
| Singapore Investment | ≥10% of AUM or S$10M (lower amount) in qualifying local assets |
Section 13O suits families with a Singapore-incorporated holding company who want a simpler structure and a lower AUM entry threshold.
Section 13U: Ultra-High-Net-Worth Tier
| Requirement | Details |
|---|---|
| Minimum AUM | S$50 million in designated investments |
| Fund Vehicle | Can be incorporated anywhere (Cayman, BVI, Singapore) |
| Investment Professionals (IPs) | At least 3 IPs; at least 1 must be a non-family member |
| Local Business Spending | S$500,000/year (AUM up to S$100M); S$1M/year (AUM >S$100M) |
| Singapore Investment | ≥10% of AUM or S$10M (lower amount) in qualifying local assets |
Section 13U is better suited to larger families with offshore fund vehicles already in place (e.g., Cayman or BVI entities) who still want to base their investment team in Singapore. For a detailed comparison of these two schemes, see our article on Section 13O vs 13U Singapore Family Office Tax Incentives.
Step-by-Step Process: Setting Up a Singapore Family Office
Step 1: Pre-Structuring and Legal Advice
Before any entity is incorporated, engage a Singapore-qualified lawyer and tax adviser to map out the family’s source of capital, family ownership structure, investment strategy, and tax residency implications in the home country. MAS’s AML/CFT requirements mean that the origin of all invested assets will be scrutinised rigorously. Prepare a clear source-of-wealth narrative supported by documentary evidence — this is the single most important factor in the success and speed of the MAS application.
Step 2: Incorporate the Entities in Singapore
Two Singapore private limited companies are typically incorporated:
- Fund Vehicle (Fund Co) — holds the family’s assets and applies for the 13O or 13U exemption. For more complex families, a VCC may be preferable.
- Fund Management Company (FMC) — employs the investment professionals and manages the fund under an investment management agreement with the Fund Co.
Both entities require at least one Singapore-resident director, a registered office address, and a corporate secretary appointed within six months of incorporation.
Step 3: Hire Investment Professionals (IPs)
MAS requires that the qualifying IPs be recruited and employed before or concurrently with the application. IPs must hold relevant professional qualifications (e.g., CFA, CAIA, or a degree in finance or economics), be based in Singapore, earn the minimum qualifying salary, and dedicate their working time to managing the fund’s investments. For Section 13U, at least one IP must be a non-family member hired from the open market.
Step 4: Establish a Physical Office
MAS requires the FMC to operate from a physical commercial premises in Singapore. Virtual offices are not acceptable and will result in rejection of the MAS application. A dedicated workstation within a serviced office is typically sufficient for smaller SFOs.
Step 5: Plan the Singapore Investment Portfolio
Both schemes require at least 10% of AUM (or S$10 million, whichever is lower) to be deployed into qualifying Singapore assets, including SGX-listed equities, Singapore qualifying debt securities, and non-listed Singapore operating companies. This deployment must be maintained on an ongoing basis, so it is best to plan it into the portfolio strategy from day one rather than treating it as a compliance afterthought.
Step 6: Submit the MAS Application
The application package typically includes the completed MAS form, constitutional documents of both entities, AML/CFT policies and procedures, an investment policy statement, an organisational chart showing IP roles, and comprehensive source-of-wealth and source-of-funds documentation. Processing time is realistically 4–9 months from a complete filing, depending on the complexity of the family’s wealth origins and the quality of the submission.
Step 7: Post-Approval Ongoing Compliance
Once approved, the family office must:
- File annual tax returns for both entities with IRAS
- Submit annual compliance reports to MAS confirming continued satisfaction of scheme conditions
- Maintain the local business spending and Singapore investment thresholds
- Conduct annual AML/CFT risk assessments and refresh KYC documentation
- Comply with PDPA obligations in respect of personal data held by the FMC
Estimated Setup Costs
| Item | Estimated Cost |
|---|---|
| Incorporation (2 entities) | S$1,500–S$3,000 |
| Legal structuring advice | S$20,000–S$80,000 |
| MAS application preparation | S$15,000–S$50,000 |
| IP salaries (annual) | S$120,000–S$500,000+ |
| Physical office (annual) | S$20,000–S$100,000 |
| Fund administration & accounting | S$30,000–S$80,000 per year |
| Corporate secretarial services | S$2,000–S$5,000 per year |
| Total Year 1 (estimate) | S$200,000–S$800,000 |
Costs vary significantly depending on the family’s complexity, the number of entities, and the level of external professional support engaged.
Common Mistakes to Avoid
- Underestimating the AML documentation burden: MAS scrutinises the source of wealth and source of funds in detail. Families unable to clearly document the origins of their capital face lengthy delays or outright rejection.
- Using a virtual office: MAS will not approve applications where the FMC does not have genuine physical presence in Singapore.
- Hiring IPs without proper qualifications: Ensure all IPs meet MAS’s definition. Appointing family members without the right qualifications will breach scheme conditions.
- Ignoring the Singapore investment requirement: The 10%/S$10M local investment threshold must be factored into the portfolio strategy from the outset, not retrofitted at annual review time.
- Treating annual compliance as an afterthought: MAS has revoked exemptions for families that fail to meet ongoing business spending or IP requirements. Implement compliance monitoring systems from day one.
Frequently Asked Questions
Do I need to be a Singapore PR or citizen to set up a family office here?
No. Foreign nationals can set up a Singapore family office. However, the FMC and fund vehicle must have at least one Singapore-resident director. Many families initially appoint a professional resident director while the family’s relocation to Singapore is in progress.
Can I include non-family assets in my Section 13O fund?
No. The SFO exemption requires that the fund exclusively manages assets of the family group. Including third-party capital would require MAS licensing as an MFO or RFMC, with significantly more onerous regulatory requirements.
Is a VCC better than a Pte Ltd for the fund vehicle?
A VCC offers greater flexibility — it can hold multiple sub-funds with segregated assets — and is therefore better suited to families with multiple asset pools or multiple family branches. A Pte Ltd is simpler and more cost-effective for smaller, less complex family offices.
Can I invest in cryptocurrency under Section 13O or 13U?
Cryptocurrency is not a “designated investment” under the standard schedules for either scheme. Families wishing to hold digital assets must take specific structuring advice, as the tax treatment of gains may be uncertain.
How long does MAS approval take?
Realistically, 4–9 months from the date of a complete and properly documented application. Incomplete submissions — particularly regarding source-of-wealth documentation — are the most common cause of delays.
How Raffles Corporate Services Can Help
Raffles Corporate Services assists families with the full suite of family office setup services, including entity incorporation, resident director services, corporate secretarial compliance, coordination with MAS-approved legal advisers and fund administrators, and ongoing annual compliance support.
📧 Email: [email protected]
📱 Call, SMS or WhatsApp: +65 8501 7133
— The Editorial Team, Raffles Corporate Services