Why Establish a Family Office in Singapore (InCorp Global)

Business Opportunities
October 19, 2021 - InCorp Global Pte Ltd

This is a thought leadership article providing guidance on setting up a Family Office in Singapore from PrimeGlobal member firm InCorp Global in Singapore.

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What is a Family Office?

The private wealth management consulting businesses of high-net-worth individuals are known as family offices (HNWI). They differ from traditional wealth management businesses in that they offer a full-service outsourced solution for a wealthy family's financial and investment needs. Types of family office structures include: 

  • Single Family Office (SFO)
  • Multi-Family Office (MFO)

What makes Singapore a good location to set up a Family Office?

The number of super-rich individuals and families has exploded as a result of the region's unprecedented growth in income and affluence over the last decade. Asia has one of the fastest-growing populations of high-net-worth individuals (HNWIs), resulting in enormous wealth concentration.

It's no surprise that these HNWIs will choose a desirable location with the necessary attributes for wealth management because they want to keep, grow, and pass on their money to future generations. Singapore is one of the most sought-after locations due to its prominence as a global financial center. In addition to being a stable and well-regulated financial powerhouse, it has wealth-friendly legislation and an advantageous tax system. Because of its huge pool of talent in the private banking, asset management, legal, and finance industries, Singapore is one of the most tempting locations for establishing a Family Office.

What is a typical Family Office structure?

In both Europe and the United States, the concept of a Family Office is well-known. The Family Office has been a popular wealth management solution as Asian wealth has grown, and it can be adapted to the needs of HNWIs and their families. It's essentially a fund management advisory organization tasked with overseeing a family's assets and investments, as well as their administration, preservation, growth, and intergenerational transfer. A Single-Family Office (SFO) is a legal entity that oversees the financial and personal affairs of a single family and is entirely owned by family members. The graphic below depicts a typical SFO ownership structure:

What are the factors to consider when establishing a Family Office?

The demands and aspirations of each HNW family in terms of establishing a family office will be different. There is no such thing as a generic family office structure; rather, each family office must be adjusted to the family's specific needs, taking into account several factors such as:

  • the reasons for establishing a family office
  • what kind of assets will be infused into the family office
  • the family office's investment strategy and mandate
  • the regulations that must be followed and the tax advantages that are offered.

Read more on the 5 key considerations for setting up a family office in Singapore.

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InCorp Global Pte Ltd

Headquartered in Singapore, InCorp Global is a leading corporate services provider, with an established regional presence across seven Asian countries, including Indonesia, India, Hong Kong, Philippines, Vietnam, and Malaysia. The group services more than 12,000 corporate clients across various industries, including asset / fund managers, as well as family offices. They are official partners with key government authorities in the region, such as Singapore’s Economic Development Board, a government agency that is tasked with bringing in foreign direct investments into Singapore.

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