How to Set up a Family Office in Singapore: Requirements & Setup Process

Singapore is a leading destination for families seeking to preserve and structure long-term wealth. Today, it serves as one of Asia’s primary hubs for family offices, housing more than 2,000 single-family offices (SFOs) and close to half of the region’s top family businesses.

While Hong Kong remains a critical gateway to Mainland China, Singapore is often preferred for its political neutrality, regulatory clarity, and a legal framework rooted in English common law. These provide a stable environment for families managing wealth and assets across borders.

This guide outlines how to set up a family office in Singapore. We’ll explore the structural options available, key requirements to establish a family office, and the step-by-step setup process with ACRA.

What is a Family Office in Singapore?

At its core, a family office is a private entity designed to centralize the management of a family’s significant wealth, investments, and legacy. In Singapore, these structures fall into two distinct categories:

Feature	Single Family Office (SFO)	Multi-Family Office (MFO)
Primary Purpose	Private vehicle managing the assets of one family only.	Commercial firm serving multiple unrelated families.
Regulatory Status	Typically qualifies for an exemption under the Securities and Futures Act (SFA).	Must hold a Capital Markets Services (CMS) license from MAS.
Control & Privacy	Offers absolute autonomy and operational privacy.	Commercial framework with ongoing regulatory reporting obligations.
Typical AUM Range	S$20M (Section 13O) or S$50M (Section 13U) for tax incentives.	Generally accommodates clients with assets between S$5M and S$50M.
Operational Focus	Bespoke, internal infrastructure for a single legacy.	Practical, outsourced management sharing professional resources.

The SFO is significantly more popular in Singapore, primarily because it offers the highest degree of confidentiality and strategic control. If your priority is long-term wealth preservation, the bespoke nature of an SFO provides you with a “hands-off” regulatory environment, allowing you to compound your family’s wealth with minimal external interference.

Emerhub’s local advisors can break down the key requirements, trade-offs, and structures that align with your intended goals. Schedule a consultation today here.

How to Set Up a Single Family Office (SFO) in Singapore

1. Choosing the Right Structure for Your Family Office

To establish your Family Office, the first step is registering your chosen legal entity with the Accounting and Corporate Regulatory Authority (ACRA). ACRA is Singapore’s national regulator of business entities and oversees registration of companies. This registration is a prerequisite for tax incentives and opening bank accounts. It determines your regulatory standing, the speed of bank KYC, and your future capital mobility. 

Below are the most common vehicles used for a Singapore SFO:

Structure	Key Features	Selling Points	Trade-offs
Private Limited (Pte Ltd)	Separate legal entity; limited liability.	Most recognized by banks; simple to audit; standard for S13O tax exemptions.	Public ACRA records for directors/shareholders; rigid capital structure.
Variable Capital Company (VCC)	Segregated sub-funds; flexible capital.	Individual sub-fund losses don’t impact others; private shareholder registers.	Higher setup costs: Setup S$30k–S$50k; annual OpEx S$100k+ (audits, fund admins required).
Family Trust (Trust Deed)	Fiduciary setup for beneficiaries.	Instant asset transfer without probate; protects against creditors and external claims.	Loss of legal ownership; requires professional trustee or Private Trust Company (PTC).

In practice, most foreign investors adopt the Two-Entity Private Limited structure because it mirrors the organization of professional fund managers while remaining within the SFO exemption framework. This model incorporates two separate companies:

• The Fund Entity (Investment Holding Company): A Pte Ltd that legally holds the family’s assets and applies for Section 13O or 13U tax incentives.
• The SFO Management Company: The operational arm that hires investment professionals, incurs local business spending, and manages the Fund under a formal services agreement.

While all SFOs offer regulatory privacy, the standard Pte Ltd model involves public disclosure of ownership on the ACRA registry. If you require “Ultra-Privacy” to keep your family’s name off public records, our advisors recommend the VCC or Private Trust Company (PTC) structure.

Emerhub offers end-to-end support to help you register and establish your family office in Singapore. Fill out the form below to speak to our local experts and hear about the full range of our services.

2. Ownership and Legal Requirements

Setting up an SFO in Singapore offers several key features, the most significant being 100% Foreign Ownership. Foreign investors are permitted to maintain full control and ownership of both the Fund and Management entities without the need for a local joint-venture partner.

However, to qualify for a licensing exemption, you’ll have to meet the following requirements:

• Family Nexus: The structure must be wholly owned or controlled by members of the same family. This is defined by the Monetary Authority of Singapore (MAS) as lineal descendants and their spouses.
• Capital Requirements: The Fund entity carries no statutory minimum. However, the Management Company typically requires S$50,000 to S$100,000 in paid-up capital to cover initial business spending and demonstrate operational readiness.

Beyond these SFO-specific criteria, the Companies Act mandates certain corporate governance roles. These are typically managed by a corporate secretarial partner such as Emerhub:

• Resident Director: At least one director must be a Singapore citizen, PR, or EntrePass/EP holder.
• Corporate Secretary: Appoint a qualified local secretary within 6 months of incorporation.
• Registered Physical Address: A local physical office is mandatory. Virtual offices are generally rejected for tax incentive applications.

Licensing Process and Tax Schemes for Family Offices in Singapore

1. Capital Market Services (CMS) License Exemption for SFOs 

In Singapore, managing funds for third parties is a regulated activity. However, SFOs generally qualify for a Capital Markets Services (CMS) Licensing Exemption because they manage proprietary assets rather than commercial funds. 

Under the current MAS Class Exemption framework, this status is no longer automatic and requires a formal notification process, as detailed below. Emerhub can manage all of these moving parts on your behalf:

• Mandatory Notification: Formally notify MAS of your exempt status within 14 days of commencing business operations in Singapore.
• Legal Opinion: Submit a formal legal opinion from a Singapore-based law firm confirming that your SFO structure meets all “Family Nexus” and control criteria.
• Ongoing Reporting: Once the exemption is acknowledged, the SFO must file an annual return reporting its total Assets Under Management (AUM). You must also maintain business relations with a regulated Singaporean financial institution for ongoing AML/KYC monitoring.

2. Apply for Section 130 or 13U Schemes

The primary driver for setting up an SFO in Singapore is the “Tax Certainty” provided by the Section 13O and 13U schemes. 

In many jurisdictions, the line between “capital gains” (non-taxable) and “trading income” (taxable) is blurry. Singapore’s incentives remove this ambiguity entirely, providing a permanent 0% tax rate on qualifying income regardless of trading frequency.

This exemption covers Specified Income (including interest, dividends, and gains) derived from Designated Investments (such as stocks, bonds, and derivatives). It effectively allows a family to compound their wealth globally without the drag of local corporate or capital gains tax.

Feature	Section 13O (Singapore Resident Fund)	Section 13U (Enhanced Tier Fund)
Best For	Mid-tier family offices	Large/Global family offices
Min. AUM (at application)	S$20 million at application; S$5 million in Designated Investments maintained annually	S$50 million in Designated Investments at application and maintained annually
Min. Investment Professionals	2 (At least 1 non-family)	3 (At least 1 non-family)
Legal Form	Singapore-incorporated Company	Company, Trust, or VCC
Tax Exemption	0% on Specified Income	0% on Specified Income

Note: From January 2025, AUM (Assets Under Management) is calculated based on the “value of investments” (Designated Investments) rather than Net Asset Value (NAV). This ensures that only high-quality assets count toward your threshold.

Operational Compliance and Mandatory Spending

It’s important to understand that the MAS tax incentives are not “passive” benefits. To keep your status active, the SFO must demonstrate “economic substance” to prove that your office is a real, active contributor to the Singapore economy. This ensures the structure is seen as a legitimate investment vehicle rather than a shell for tax avoidance.

This is measured through two primary pillars: Local Business Spending (LBS) and Local Ecosystem Investments.

1. Local Business Spending (LBS)

To satisfy this requirement, the SFO must meet an annual expenditure threshold. This includes operational costs such as salaries for investment professionals, office rent, and fees for local service providers (legal, tax, and corporate secretarial).

The tiered spending requirements are based on your total Assets Under Management (AUM):

• AUM < S$250M: Minimum S$200,000 annually.
• S$250M ≤ AUM < S$2B: Minimum S$300,000 annually.
• AUM ≥ S$2B: Minimum S$500,000 annually.

2. The 10% Local Investment Mandate

Under the latest guidelines, the MAS requires SFOs to deploy capital back into the Singaporean ecosystem. Your SFO must invest at least 10% of its AUM or S$10 million (whichever is lower) into “Designated Local Investments.”

Eligible investments include:

• Equities: Stocks listed on the Singapore Exchange (SGX).
• Debt: Qualifying debt securities issued in Singapore.
• Private Markets: Investments in Singapore-incorporated startups or private equity funds.
• ESG & Climate: Investments in “Green” projects or climate-related transition assets based in Singapore.

Establish Your Family Office in Singapore with Ease

Establishing a fully compliant SFO requires coordinating several operational tasks, from precise tax planning to corporate governance. Emerhub acts as your local partner in Singapore, handling the administrative and regulatory details so your family can focus on long-term investment goals.

We manage the four core workstreams for a successful setup:

1. Structural Advisory: Finalizing your legal entities (Pte Ltd vs. VCC) to ensure the structure aligns with your specific portfolio and future sub-fund needs.
2. ACRA & Corporate Governance: Managing the full incorporation of both the Fund and Management entities while providing the mandatory Resident Director and Corporate Secretary services.
3. Banking & KYC Activation: Facilitating the rigorous 3–5 month “Know Your Customer” (KYC) process at Singapore’s top-tier private banks to ensure your capital is mobile.
4. MAS Tax Application: Handling the formal filing for 13O/13U status to ensure your investment professional (IP) count and AUM reporting meet strict regulatory benchmarks.

From entity incorporation to tax registrations and ongoing compliance, Emehub offers comprehensive support to set up your family office in Singapore.

Schedule a private briefing to discuss how we can assist with your setup in Singapore today. Fill out the form below, and our local advisory team will get in touch.