Beaufort
Private Client Services

A boutique firm for Family Office set up
and management in Singapore

A boutique firm for Family Office set up and management in Singapore

Overview of a Family Office

A family office is an integrated set-up used by families to professionalise their wealth management and family related activities.

A Single Family Office (SFO) manages the investments for and on behalf of one single family, supports, and advises the family on accounting, tax, and legal aspects, property and estate management, charitable giving, education programmes for the next generation, and oversees other administrative and planning matters for the family.

It is a one-stop shop dedicated to serving the needs of the family for the benefit of the current and future generations.

Why Family Office

Build a long-term family legacy and unite the family around common values.

Professionalise in the management of the family’s business and non-business assets.

Provide employment opportunities for family members joining the family office.

h

Address succession planning and family governance requirements, and grooming the next generation.

g

Centralise professional, advisory, and consultancy services.

Benefit from efficient tax management on investments.

The Key Area of Family Office Objectives

Family

Wealth

Business

Objectives

Family

5

Privacy and Security

5

Succession & Estate Planning

5

Philanthropy

5

Legacy Planning

5

Family Governance

5

Migration and Mobility Planning

Objectives

Wealth and Business

5

Maintaining Assets & Core Business

5

Wealth Accumulation

5

Wealth Protection

5

Consolidating Cross Borders Assets

5

Wealth Preservation

5

Tax Management

Do I Need a Family Office?

Our self-assessment questionnaire is a good place to start when considering setting up a family office and reviewing your family’s broader financial picture. It will help you assess the degree to which you have a handle on your financial affairs and where you may need some help getting and keeping them in good order — for your own sake and for your family.

Why Set Up a Family Office in Singapore

Stable political and business environment.

Attractive tax regime with several tax treaties and free trade agreements.

No inheritance or capital gains tax.

Safeguard family’s confidentiality.

World class infrastructure.

Tax Incentives for Funds Managed by Family Office

Singapore has introduced three tax incentive schemes for funds that are being managed by Singapore-based fund managers.

Specified income from designated investments as stipulated in the Singapore Income Tax Act (SITA) would be tax exempted under the tax incentive schemes.

The list of specified income and designated investments include, amongst others, most income from traditional investments such as equities, bonds, and immovable properties situated outside Singapore.

The incentives will expire on 31 December 2024.

Types of Family Offices

Wealthy families typically hold their assets and investments via holding companies or special purpose vehicles. However, managing these entities may not be as efficient as they usually straddle across multiple jurisdictions for confidentiality and tax purposes.

Forming a Single Family Office integrates and coordinates all wealth matters of the family, thus retaining a high level of control and privacy whilst enabling the alignment with the family’s goals, values, and interests. The Family may employ a mix of in-house or external specialists such as investment advisers, insurance directors, lawyers, property managers, and tax and philanthropy directors to manage the Family’s wealth for their future generations.

Families may also choose to join hands with other families to establish a Multi-Family Office.

5 Key Considerations

Before setting up a family office, families should consider the following considerations

What are the objectives for setting up the family office

A good understanding of the key reasons for setting up a family office can help in the design of an optimal family office structure.

What types of assets will be injected into the family office

Knowledge of the specific assets that will be injected is important as specific tax and legal advice may have to be obtained so as to facilitate effective planning to determine the optimal method of transferring the assets.

What are the investment strategy and investment mandate for the family office

It is critical to determine the investment objectives and risk appetite of the family so that a proper investment strategy that matches its risk profile and objectives can be developed.

What are the licensing requirements and what tax incentives are available

The family office will need legal and regulatory advice on its licensing requirements and assess if an explicit exemption is to be obtained from the MAS. Tax advice will also have to be obtained to determine the tax incentives that are applicable to the family office.

What are the ongoing operational requirements of a family office

The family office, like regular companies, will require a variety of corporate support services such as accounting, legal, information technology, corporate secretarial, human resource, tax, etc. services. To the extent the family office does not have the in-house capabilities, it may have to outsource to external service providers.

It will be Worthwhile

To give careful thought to each factor before setting up a family office, so as to ensure that the chosen structure fits snugly within the key objectives of the HNW family. Otherwise, inefficiencies within the structure implemented, or efforts to rectify the structure could prove to be costly.

Timeline to Establish a Typical Singapore Family Office

Start to Week 2

Structure Proposal

Week 2

Engagement

Week 2 Up To Week 10

Project Implementation

Week 10 to Week 12

Fund Go Live!

Conducts onboarding due diligence procedure on client and family

Fact-finding discussion on client’s current structure and requirements

Propose suitable structure from the perspective of risk management, compliance (including license requirements) and taxation

Client signs Engagement Letter

Client signs Authorisation Letter to liaise and coordinate with Legal Experts, Trust Service Providers (where required) and Regulators

Seek Legal Opinion on the viability of proposed structure

Coordinate with appointed lawyer to draft Singapore Trust Deed and other associated legal documentation

Set up Singapore entities for the Single Family Office Structure

Open Operating Bank Accounts

Draft Employment Contract

Apply for Employment Pass for Principal and Investment Professional

Application for Capital Markets Services (CMS) Exemption with MAS

Arrange and coordinate interview with MAS

Upon approval from MAS, prepare to launch the fund by raising Capital for the Fund

Draft Investment Management Agreement

Coordinate with Private Bank to open investment account

Invest SGD20 Million Capital to the Fund entity

Application for SGD13O Tax Incentive Scheme with MAS

Recruit Investment Professional (Non-Family)

Timeline to Establish a Typical Singapore Family Office

Start to Week 2

Structure Proposal

Conducts onboarding due diligence procedure on client and family

Fact-finding discussion on client’s current structure and requirements

Propose suitable structure from the perspective of risk management, compliance (including license requirements) and taxation

Week 2

Engagement

Client signs Engagement Letter

Client signs Authorisation Letter to liaise and coordinate with Legal Experts, Trust Service Providers (where required) and Regulators

Week 2 Up To Week 10

Project Implementation

Seek Legal Opinion on the viability of proposed structure

Coordinate with appointed lawyer to draft Singapore Trust Deed and other associated legal documentation

Set up Singapore entities for the Single Family Office Structure

Open Operating Bank Accounts

Draft Employment Contract

Apply for Employment Pass for Principal and Investment Professional

Application for Capital Markets Services (CMS) Exemption with MAS

Arrange and coordinate interview with MAS

Upon approval from MAS, prepare to launch the fund by raising Capital for the Fund

Draft Investment Management Agreement

Week 10 to Week 12

Fund Go Live!

Coordinate with Private Bank to open investment account

Invest SGD20 Million Capital to the Fund entity

Application for SGD13O Tax Incentive Scheme with MAS

Recruit Investment Professional (Non-Family)

At Your Service

There is no basic template for setting up a family office. The family office is a truly bespoke, end-to-end, multigenerational fund management vehicle. Given the complexities of such a custom-made, all-encompassing solution, setting up a family office is no simple task.

Beaufort Private Clients Services provide holistic advice from suitable structures for your family office. Our network of experienced professionals and specialists can help you set up a family office seamlessly, applying licences and tax exemption schemes and manage all regulatory and reporting requirements.

Secure Your Legacy with a Singapore Family Office

Request an Introduction

Our team of experts is ready to assist you

Get a quote

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Beaufort
Private Client
Services Pte. Ltd. 

8 Eu Tong Sen Street
#14-94 The Central
Singapore 059818
T:  (65) 6227 7269
WA: (65) 9009 9227
E:  privateclient@beaufort.sg

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