(38).jpg)
July 15, 2025
This 2025 expert guide
covers 10 essential steps, including legal setup, tax exemptions, governance,
and legacy planning.
As ultra-high-net-worth individuals (UHNWIs) seek greater control over
their wealth, legacy planning, and investment strategies, the Single Family
Office (SFO) has become an increasingly popular solution. Designed to serve the
needs of just one family, an SFO consolidates financial, legal, estate, and
philanthropic matters under one private entity.
Among the world's financial centers, Singapore stands out as a premier
jurisdiction for setting up a family office. Known for its stable regulatory
environment, business-friendly policies, attractive tax schemes, and strategic
access to Asia, Singapore continues to attract global families looking to
establish a long-term wealth management presence.
If you're exploring how to establish a Single Family Office in
Singapore, this 10-step guide outlines the critical process—from defining your
objectives to applying for tax exemptions and building an effective governance
framework.
1. Define the Objectives of the Family Office
The first step is to clearly articulate the purpose of your family
office. This includes understanding what the family wants to achieve—be it
wealth preservation, investment management, succession planning, philanthropy,
or lifestyle services. These objectives will shape the office’s structure,
staffing, investment strategy, and governance policies.
2. Select the Appropriate Legal Structure
Singapore offers a variety of legal structures suitable for family
offices. Most families choose to incorporate a private limited company, while
others may consider forming a Variable Capital Company (VCC) a flexible
structure that allows for fund management across multiple sub-funds. Trusts or
foundations may also be explored for estate planning and intergenerational
wealth transfer. The ideal structure will depend on the family’s needs,
investment goals, and jurisdictional considerations.
3. Incorporate the Entity with ACRA
Once the structure is chosen, the entity must be incorporated with the
Accounting and Corporate Regulatory Authority (ACRA). This involves appointing
directors, preparing the company constitution, assigning a registered office
address, and submitting the necessary incorporation documents. This step gives
the SFO legal standing and begins its regulatory obligations under Singaporean
law.
4. Open a Corporate Bank Account in Singapore
Once the company is incorporated, the next step is to set up a
corporate bank account.
Singapore's financial institutions are globally recognized for security
and service, but they require thorough due diligence. Banks will typically
request detailed documentation on the family’s source of wealth, the office’s
ownership structure, and intended activities. A well-prepared business plan and
governance documents will support a smoother onboarding process.
5. Develop a Governance and Operational Framework
Establishing clear internal governance is essential for ensuring
accountability and effective decision-making. The framework should outline
roles and responsibilities, investment mandates, reporting protocols, and
escalation processes. This helps prevent conflicts, ensures compliance, and
supports long-term continuity. Many families also implement a family charter or
constitution to guide values and legacy planning.
6. Recruit Key Personnel
Staffing is critical to the success of a Single Family Office.
Depending on your structure and plans, you may need to hire professionals in
investment management, legal and compliance, risk oversight, and accounting. To
qualify for Singapore’s tax exemption schemes (discussed next), there are
minimum requirements for full-time investment professionals—typically two under
Section 13O and three under Section 13U of the Income Tax Act.
7. Apply for Tax Exemption Under Section 13O or 13U
Singapore offers attractive tax exemption schemes to qualifying family
offices:
Applications are made to the Monetary Authority of Singapore (MAS) and
must include comprehensive documentation, including your investment strategy,
structure, team profile, and long-term operational plan.
8. Meet Compliance and Reporting Obligations
While most SFOs qualify for exemptions from licensing under the
Securities and Futures Act (SFA), they are still expected to comply with anti-money
laundering (AML) and counter-terrorism financing (CFT) standards. Depending
on the family’s global footprint, compliance with FATCA and Common Reporting
Standard (CRS) may also be necessary. Establishing internal compliance systems
and controls is essential to mitigate risk.
9. Set Up Investment and Operational Infrastructure
With legal and personnel structures in place, the family office must
implement its operational backbone. This includes financial reporting systems,
investment platforms, data security tools, and document management processes.
Many family offices also build proprietary dashboards to track performance,
monitor risk, and facilitate strategic reviews.
10. Establish a Long-Term Succession and Legacy Plan
A key role of any family office is to ensure continuity and stewardship
across generations. Succession planning involves identifying future family
leaders, mentoring younger generations, and establishing governance bodies such
as family councils or boards. Legacy planning may include setting up trusts,
foundations, or philanthropic arms, helping the family align its wealth with
long-term values and social impact goals.
How Water and Shark Can Support Your Family Office
Journey
Setting up a Single Family Office in Singapore is not just a legal or
regulatory exercise—it is a deeply strategic undertaking that touches every
aspect of your family’s present and future. At Water and Shark, we
understand the nuanced challenges faced by UHNW families navigating this
complex terrain.
What sets us apart is our deep expertise in solving complex, multi-jurisdictional issues—from cross-border tax planning and entity structuring to succession planning and governance architecture. Our approach is holistic and tailored, ensuring that no aspect of your office is left unexamined.
Here’s why families around the world trust us:
At Water and Shark, we don’t offer off-the-shelf solutions. We build
enduring legacies.
Frequently Asked Questions (FAQs)
1. Is it mandatory to get a license to operate a Single
Family Office in Singapore?
No, most SFOs are exempt from licensing under the Securities and Futures Act if
they only manage one family’s assets.
2. Can foreign families set up a family office in
Singapore?
Yes. Both local and foreign families can incorporate SFOs in Singapore and
apply for tax exemptions.
3. What’s the difference between 13O and 13U schemes?
13O is for smaller offices with local incorporation. 13U allows higher AUM and
international incorporation flexibility.
4. How long does it take to set up an SFO in Singapore?
With the right advisors, the process can take 3 to 6 months, depending
on complexity and documentation readiness.
5. Do I need to relocate to Singapore to start an SFO
there?
No, but having a presence in Singapore may help with banking, staffing, and meeting tax exemption requirements.
6. Can my SFO also handle charitable giving?
Absolutely. Many family offices integrate philanthropy and manage family foundations or social impact funds.
