Discover how to set up your SFO in Singapore and find relevant resources, service providers, and partners.
If you’re exploring how to set up a SFO in Singapore, this guide offers an overview of the key steps involved and insights into navigating Singapore’s family office ecosystem, making it easier to manage the complexities of getting started.
For more information about Singapore's offerings as a wealth management hub, please visit the Monetary Authority of Singapore (MAS) website.
Every SFO is unique and built around the interests and needs of the family. Considerations could include wealth preservation, wealth diversification, tax certainty, succession planning, and philanthropy.
You can register your SFO and fund entity online through Bizfile, the Accounting and Corporate Regulatory Authority (ACRA)’s digital portal. The business registration process with ACRA typically takes 1-3 working days.
Structuring an SFO is dependent on each family's strategy and needs.
You might consider leveraging Singapore's highly robust trust environment supported by a strong rule of law to set up a trust, to support your family's succession planning:
However, if succession planning is not your priority, you might consider a simpler structure as direct shareholders of your SFO and fund entities:
Determine regulatory status:
SFOs managing primarily family monies are typically exempted from licensing by the MAS. They may operate under a licensing exemption framework by filing a Notice of Commencement of Business within 14 days of commencement of business, and submitting annual returns thereafter.
Identify your investment strategy:
Design your investment portfolio and identify preferred asset classes (e.g., cash and money market, loans or fixed income instrument, listed stocks, shares, or bonds, private equities or hedge funds, direct investments).
Open and maintain a bank account with a MAS-licensed bank for the SFO and its fund vehicle(s). Where the SFO has a foreign-incorporated fund vehicle, the fund vehicle must open and maintain an account with a MAS-licensed bank in Singapore or with a regulated bank in a jurisdiction that complies with anti-money laundering and countering of financing of terrorism requirements consistent with the standards set by the Financial Action Task Force.
Consider the following work passes to grow your team:
The ONE Pass is a personalised 5-year renewable pass for top talent to take up a range of roles in Singapore, and allows passholders to concurrently start, operate, and work for multiple companies in Singapore.
For other hiring policies and schemes that are designed to support you in acquiring and nurturing talent, please visit EDB's page on hiring talent in Singapore.
Tax incentive schemes for funds under sections 130 and 13U of the Income Tax Act 1947 offer tax exemptions for fund vehicles that are managed by Singapore-based fund managers, including SFOs.
|
CRITERIA |
13O ONSHORE FUND TAX EXEMPTION SCHEME |
13U Enhanced-Tier Fund Tax Exemption Scheme |
|
Assets Under Management (AUM) |
S$20 milion |
S$50 million |
|
Investment Professionals |
2 |
3 |
|
Spending Requirement |
Tiered business spending, with minimum $200,000 in Local Business Spending |
|
|
Capital Deployment Requirements for both S13O & S13U |
Investing lower of S$10 million or 10% of AUM in:
|
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Applicants can expect to receive an application outcome from MAS within 3 months.
To support greater philanthropic giving among SFOs and the growth of philanthropic capabilities in Singapore, SFO applicants managing a fund under Sections 13O and 13U of the Income Tax Act 1947 may also be eligible for the PTIS.
The PTIS offers a 100% tax deduction on overseas donations, capped at 40% of donor’s statutory income.
Rapid digitalisation and technological advancements have driven the emergence of innovative business models and high-growth market segments, fuelling vibrant startup ecosystems across Asia.
As a startup hub of the region, families can leverage Singapore as a gateway to these opportunities in Asia, to access quality investments and the region’s innovation landscape.
Families can choose multiple pathways to kickstart their investments from Singapore:
For information on public investments and opportunities in equities, real estate investment trusts (REITs), and exchange traded funds (ETFs), please visit the Singapore Stock Exchange (SGX).
For more information on local tech start-ups, venture capital firms, incubators, and accelerators, please visit Startup SG Network and Stage One.
For opportunities in private equity or venture capital funds that invest into both local and global start-ups and companies, please visit Singapore Growth Capital (SGGC).
If you are keen to invest into Singapore's local startup ecosystem, please connect with EDB.
Beyond investments in startups, Singapore is also home to a trusted vibrant philanthropy ecosystem. To create an impact, families can choose from multiple pathways to start and expand their philanthropy efforts:
For guidance on how to start or expand your philanthropic journey in Singapore, please refer to AVPN's Philanthropy Handbook.
To learn more about how some families are embarking on philanthropy in Singapore, please visit EDB's Global Business Families Insights page.
Leverage platforms like the Philanthropy Asia Alliance (PAA) and Temasek Trust Foundation Advisors (TTFA), and connect with communities of peers, like ImpactSG, the Asia Philanthropy Circle, and the Asian Venture Philanthropy Network (AVPN) for knowledge exchange and co-funding opportunities.
For regional giving, please visit the Asia Community Foundation or AVPN.
Leverage platforms like the Community Foundation of Singapore and TTFA to set up donor-advised funds for both local and regional giving.
Similar to a philanthropic function, Foundations allow families to manage their philanthropic efforts and activities in-house.
For Foundation set-ups, families could potentially qualify for support under the Ministry of Culture, Community and Youth (MCCY)’s Grantmakers Scheme, as part of the registered charities regime.
Find professional service providers, advisory firms, and other partners who can guide you in setting up and growing your SFO at the Family Office Landscape Navigator by the Wealth Management Institute (WMI).
The GIP accords Singapore Permanent Resident status (PR) to eligible global investors who intend to drive their businesses and investment growth from Singapore.
Connect with like-minded peers through the Family Business Network Asia (FBNA), Family Office Discovery Series, Global-Asia Family Office (GFO) Circle, and GFO Summit to better navigate Singapore’s dynamic FO ecosystem.
