Single Family Office
Contents of this page:
- What is a Single-Family Office?
- Why do you need a Single-Family Office in Singapore?
- Tax Incentives
- Regulatory environment ensuring safety of your assets
- Permanent Residence
- How can we help?
What is a Single-Family Office?
The roots of family offices can be traced back to the sixth century – for the king’s stewards, in charge of managing royal wealth; who over time expanded their rule to include the aristocracy.
The modern concept of a family office was developed in the 19th century by J.P. Morgan and the Rockefeller family, who formed family organizations to manage both their private wealth and family affairs. Over time, as experience and knowledge accumulated, these family offices opened up their services to other families not related to each other, evolving from single-family offices to multi-family ones.
Under single-family office is understood a company which facilities various day-to-day activities in relation to the assets of a single family. For example, such activities include allocated of investable family capital in various asset classes, management of real estate assets, tax filing and management of bank accounts.
With capital appreciation, the list and complexity of questions is increasing. Global Green Path is well position to takeover handling a number of these tasks.
Why do you need a Single-Family Office in Singapore?
Singapore is the financial centre of South-East Asia thanks to its developed financial infrastructure with tier 1 global private banks, investment banks, local Asian private banking champions and other financial service providers ranging from Venture Capital and Private Equity funds to cutting-edge FinTech providers in areas of wealth management.
With a Single-Family Office (“SFO”) you are able to relocate your investment capital to a safe heaven jurisdiction with AAA government credit rating and a strong rule of law. Your assets can be managed by you or if you choose, by private wealth management bankers offering a range of services only met by their likes in London, Hong Kong and New York.
Singapore is also acting a gateway to fast-growing economies of South East Asia.
Setting up single-family office in Singapore carries several benefits to its founders:
- Tax incentives offered in Singapore;
- Access to investment opportunities available through banks operating in Singapore;
- Family wealth protection and inheritance planning benefits; and
- If you consider relocating yourself or some of your members to Singapore, you may appointment this individual as a member of the Investment Committee which will allow to for the Employment Pass in Singapore. Such Employment Pass can be subsequently converted to Permanent Residence Pass.
A Typical Facility Office Structure in Singapore
There are several benefits of moving your assets to Singapore:
- There are no capital gains and dividends tax improving your after-tax returns;
- There is no inheritance tax in Singapore which becomes an apparent benefit when you consider passing your assets to the next generation; and
- For the family office structures, to develop Singapore’s wealth management platform the Government of Singapore put in place special tax incentives schemes which were introduced under sections 13R and 13X of the Income Tax Act (“ITA”).
Regulatory environment ensuring safety of your assets
Singapore is known for a strong rule of law. Its financial industry is overseen by a Monetary Authority (“MAS”) of Singapore.
Typically, to ensure safety of investors assets, family offices are required to be managed by a Singapore-based fund administrator holding a capital markets services (“CMS”) licence issued by MAS. However, MAS can exempt certain funds from such requirements and we are able to assist you with this. Reach out to us to schedule a free consultation and to find out more.
In addition to that, to ensure good practice in the industry and high quality of advice, financial advisors and their representatives, as well as private bankers are required to be licenced by MAS.
As part of the Single-Family Office setup in Singapore, we can help you obtain long-term passes for you and your family members which will give you the right to stay in Singapore throughout the year. Subsequently the pass can be converted to a Permanent Residence permit.
Whilst we see strong arguments for moving your personal assets to Singapore, an opportunity to obtain a Permanent Residence adds additional motivation for our clients to keep their family fortunes in Singapore.
Even if you have already deposited some of your funds overseas, consider distribution of your capital in different regions and across multiple countries.
How can we help?
We can assist you in the range of initial single-family office setup and its ongoing management:
- Advise on a suitable family-office structure considering your family plans;
- Family office setup including company registration, bank account opening, hiring of nominee director, company secretary and fulfilling other statutory requirements;
- Capital Market Licence (exemption) application;
- Introduction to wealth management professionals who are qualified to advise on the suitable investment strategy;
- Ongoing legal and accounting support to ensure smooth operations of the fund;
- Employment Pass and Permanent Residence applications; and
- Will preparation and assessment of existing documentation.
Contact us for a free evaluation.
We are able to provide you a sample calculation of your investment returns after moving assets from your current jurisdiction to Singapore.
Thanks to our unique combination of experience in legal, financial and investment industries, Global Green Path is prepared to deliver simple and easy to understand solutions for complex tasks.
8 Burn Road
Spilves street 6,
People’s Republic of China
Room 705, Unit 1, Golden Space (Building 8, Zizhu Garden), No. 1180, Beijing Road, Kunming, Yunnan Province, 650224