The Monetary Authority of Singapore (MAS) oversees the regulatory framework for family offices. While family offices do not require a specific license from MAS if they serve only related family unit members, they should adhere to certain guidelines and ensure proper structuring. For an SFO, the household must create a legal entity, typically a private limited company, to use the office. The entity must stick to local company laws, including registration with the Accounting and Corporate Regulatory Authority (ACRA) and compliance with the Companies Act.The MAS provides a wide definition of family, typically including the members of the family, their spouses, and direct descendants. The household office must demonstrate so it serves only these related parties. For tax incentive purposes, particularly underneath the Enhanced-Tier Fund Scheme (13X) or the Financial Sector Incentive – Fund Management Scheme (13R), the household office must meet minimum asset under management (AUM) requirements, typically starting at SGD 50 million.

Singapore offers several tax incentives to attract family offices. The Enhanced-Tier Fund Scheme (13X) and the Financial Sector Incentive – Fund Management Scheme (13R) are particularly relevant. These schemes provide tax exemptions on qualifying income from designated investments, at the mercy of meeting specific criteria, such as minimum spending requirements on local business costs and hiring at the very least three investment professionals Singapore family office requirements. These incentives make Singapore a stylish hub for family wealth management.Establishing a household office in Singapore involves setting up the right legal structure. Most families choose for an exclusive limited company because flexibility and limited liability protections. The business should have a minumum of one director who's ordinarily resident in Singapore, and it must maintain a registered office address in the country. Additionally, the household office must draft a clear charter or mandate outlining its governance structure, operational guidelines, and investment strategy.

A successful family office requires an experienced team to handle its operations. Singapore's pool of financial professionals, including investment advisors, tax experts, and legal consultants, makes it a great location for staffing a household office. Work must employ at the very least three investment professionals to qualify for tax incentives. These professionals should have relevant experience and qualifications to handle the family's wealth effectively and conform to regulatory requirements.Compliance with local regulations and ongoing reporting obligations is crucial for maintaining the operational integrity of a household office in Singapore. The office must abide by anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, conduct regular audits, and submit annual financial statements to ACRA. Additionally, family offices benefiting from tax incentives under the 13X and 13R schemes must meet annual reporting requirements to MAS, demonstrating continued compliance with the scheme's conditions.

Given the complexity of creating and managing a family office, engaging professional advisors is crucial. Legal advisors can help with structuring any office and ensuring compliance with regulatory requirements, while tax advisors can optimize the family's tax position and navigate the application form process for tax incentives. Investment advisors will help develop and execute the family's investment strategy, aligning with their financial goals and risk tolerance. These professionals provide invaluable support, ensuring the family office operates efficiently and effectively.Establishing a family office in Singapore offers numerous benefits, from tax incentives to get into to a very skilled workforce. However, it requires careful planning and adherence to regulatory and operational requirements. By understanding the legal framework, setting up the correct structure, and engaging experienced professionals, families can successfully establish a family office in Singapore, ensuring the effective management of their wealth and securing their financial legacy for future generations.