The Monetary Authority of Singapore (MAS) oversees the regulatory framework for family offices. While family offices do not demand a specific license from MAS when they serve only related members of the family, they must comply with certain guidelines and ensure proper structuring. For an SFO, the household must put up a legal entity, typically an exclusive limited company, to work the office. The entity must abide by 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 family 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 Singapore family office requirements. These schemes provide tax exemptions on qualifying income from designated investments, susceptible to meeting specific criteria, such as for example minimum spending requirements on local business costs and hiring at least three investment professionals. These incentives make Singapore a stylish hub for family wealth management.Establishing a family office in Singapore involves creating the right legal structure. Most families decide for a personal limited company because flexibility and limited liability protections. The organization must have a minumum of one director who is ordinarily resident in Singapore, and it must maintain a registered office address in the country. Additionally, the household office must draft an obvious 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 perfect area for staffing a family group office. The office must employ at the least three investment professionals to qualify for tax incentives. These professionals must have relevant experience and qualifications to manage the family's wealth effectively and adhere to regulatory requirements.Compliance with local regulations and ongoing reporting obligations is crucial for maintaining the operational integrity of a family office in Singapore. The office must adhere to 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 beneath the 13X and 13R schemes must meet annual reporting requirements to MAS, demonstrating continued compliance with the scheme's conditions.

Given the complexity of setting up and managing a family group office, engaging professional advisors is crucial. Legal advisors can help with structuring the 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 household office in Singapore offers numerous benefits, from tax incentives to access to a very skilled workforce. However, it takes careful planning and adherence to regulatory and operational requirements. By understanding the legal framework, establishing the right structure, and engaging experienced professionals, families can successfully establish a family group office in Singapore, ensuring the effective management of their wealth and securing their financial legacy for future generations.