Complete Guide to Setting Up a Family Office in Singapore (2026)

Singapore has firmly established itself as Asia’s premier destination for family offices. With over 1,500 single family offices (SFOs) now operating in the city-state, robust legal frameworks, sophisticated fund management infrastructure, and generous tax incentive schemes under Sections 13O and 13U of the Income Tax Act, Singapore offers high-net-worth families a compelling combination of stability, connectivity, and operational efficiency.

Whether you are a first-generation entrepreneur looking to preserve and grow your wealth, or a multigenerational family consolidating assets across Asia, this guide walks you through the key considerations, structural options, and MAS requirements for setting up a family office in Singapore in 2026.

What Is a Family Office?

A family office is a private organisation that manages the investment, financial, and sometimes personal affairs of a single wealthy family (a single family office, or SFO) or multiple families (a multi-family office, or MFO). Unlike a traditional fund manager, a family office serves the specific needs of one family — including wealth management, estate and succession planning, philanthropic activities, tax structuring, and family governance.

In Singapore, family offices typically operate within the regulatory framework administered by the Monetary Authority of Singapore (MAS) and the Inland Revenue Authority of Singapore (IRAS).

Why Set Up a Family Office in Singapore?

• Political and economic stability: Singapore’s AAA-rated economy, strong rule of law, and independent judiciary provide certainty for long-term wealth management.
• Strategic location: As a gateway to Southeast Asia and a hub for cross-border transactions, Singapore offers unmatched connectivity to fast-growing regional markets.
• Favourable tax regime: Singapore levies no capital gains tax, no inheritance tax, and no withholding tax on dividends paid by Singapore companies. The 13O and 13U incentive schemes offer further tax exemptions for qualifying fund vehicles.
• Sophisticated talent and infrastructure: Singapore has a deep pool of experienced fund managers, legal advisors, tax specialists, and family office service providers.
• VCC structure: Singapore’s Variable Capital Company (VCC) structure — unique in Asia — offers flexible sub-fund structures well-suited to family office use.

Key Structural Decisions

Choosing a Fund Vehicle

The choice of fund vehicle determines how the family office holds and manages assets. Common structures include:

• Singapore Private Limited Company: Simple, widely used, required for Section 13O applicants.
• Variable Capital Company (VCC): A Singapore-specific structure that allows multiple sub-funds within a single legal entity — ideal for families with distinct investment strategies or asset classes. See our article on the Variable Capital Companies Act 2018.
• Limited Partnership (LP): Flexible for private equity-style investments.
• Trust: Common for estate planning and succession purposes, often used alongside a company or VCC.
• Cayman Islands / BVI vehicles: Still used for some 13U applications, as Section 13U does not mandate a Singapore-incorporated vehicle.

Single Family Office vs Multi-Family Office

An SFO serves one family exclusively. An MFO serves multiple families and is typically regulated as a licensed fund manager. Most families setting up in Singapore opt for an SFO initially, given the greater control, privacy, and flexibility it offers. MFOs require a Capital Markets Services (CMS) licence from MAS.

MAS Tax Incentive Schemes: Section 13O and Section 13U

The two principal tax incentive schemes for Singapore family offices are provided under Sections 13O and 13U of the Income Tax Act. Both provide a full tax exemption on “specified income” from “designated investments” — effectively exempting investment returns from Singapore income tax.

Section 13O (Formerly Section 13R) — Onshore Fund Scheme

Section 13O applies to funds incorporated in Singapore (typically a private limited company or VCC).

Key requirements:

• Minimum AUM: S$20 million at the point of application.
• Local investment requirement: At least 10% of AUM or S$10 million (whichever is lower) must be invested in specified local investments.
• Investment professionals (IPs): At least 2 IPs based in Singapore, each earning at least S$3,500/month and holding relevant qualifications.
• Local business spending: Minimum S$200,000 per year (funds below S$50M) or S$500,000 per year (funds between S$50M–S$100M) or higher tiers for larger funds.
• Fund structure: Must be a Singapore-incorporated company or VCC.

Section 13U (Formerly Section 13X) — Enhanced-Tier Fund Scheme

Section 13U is more flexible than 13O and does not require the fund to be Singapore-incorporated.

Key requirements:

• Minimum AUM: S$50 million at the point of application.
• Local investment requirement: At least 10% of AUM or S$10 million (whichever is lower) in specified local investments.
• Investment professionals: At least 3 IPs based in Singapore (at least one must be a non-family member), each earning at least S$3,500/month.
• Local business spending: Minimum S$500,000 per year (funds below S$100M); higher tiers apply for larger funds.
• Fund structure: No Singapore incorporation requirement — the fund may be a Cayman, BVI, or Luxembourg vehicle managed by a Singapore-based family office entity.

Section 13O vs 13U: Quick Comparison

Step-by-Step: Setting Up a Singapore Family Office

1. Determine your structure: Decide on the fund vehicle (company, VCC, LP, trust), the incentive scheme to target (13O or 13U), and whether you need a licensed fund manager or will operate as an SFO under an exemption.
2. Incorporate the fund entity and the family office management company: The management company is typically a Singapore private limited company that employs the investment team and manages the fund. Engage a corporate secretarial firm experienced in family office setups. See our guide on incorporating a private limited company in Singapore.
3. Hire investment professionals: Identify and hire qualifying IPs who meet MAS requirements (residency, qualifications, minimum salary).
4. Establish local investments: Ensure the fund has allocated the required percentage to qualifying local Singapore investments (equities, bonds, private equity, real estate, etc.).
5. Apply for the MAS incentive scheme: Submit the application to MAS through the MAS MTAS (MAS Tax Incentive Application System). Applications require detailed information on the fund, the family, the investment strategy, and the management team.
6. Comply with AML/KYC and reporting requirements: Family offices are subject to Singapore’s Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. Enhanced scrutiny applies following MAS’s 2022 and 2023 regulatory enhancements.
7. Ongoing compliance: Maintain annual compliance with MAS reporting, local investment and spending thresholds, and IP requirements. File annual tax returns and maintain proper accounting records.

Regulatory Developments in 2025–2026

The Singapore family office sector has undergone significant regulatory tightening in recent years:

• Enhanced AML requirements (2023–2024): Following Singapore’s S$3 billion money laundering case in 2023, MAS significantly tightened AML/KYC requirements for family offices. Due diligence on sources of wealth is now highly rigorous.
• Class exemption framework: MAS introduced a class exemption for SFOs meeting certain criteria, removing the need for individual licensing while maintaining appropriate oversight.
• Increased scrutiny of IP qualifications: MAS is increasingly scrutinising whether IP hires are genuine investment professionals, particularly where family members are employed as IPs.
• VCC uptake growing: The VCC has gained significant traction as a fund structure for family offices, with over 1,000 VCCs incorporated since the framework launched in 2020.

Common Pitfalls to Avoid

• Underestimating AML compliance: Many family office applicants underestimate the depth of documentation required to satisfy MAS’s source of wealth and funds requirements. Engage experienced legal and compliance counsel early.
• Failing to meet local spending thresholds: Local business spending must be genuine and substantiated — it cannot be manufactured through related-party transactions.
• Incorrect IP counting: Investment professionals must meet all qualifying criteria (residency, qualifications, salary). Part-time or nominal roles will not satisfy MAS.
• Ignoring succession and governance: A family office without a clear governance framework and succession plan is a wealth preservation risk. Estate planning, family constitutions, and clear investment mandates should be addressed at the outset.

How Raffles Corporate Services Can Help

Setting up a family office in Singapore involves legal, tax, regulatory, and corporate secretarial expertise working in concert. At Raffles Corporate Services, we assist ultra-high-net-worth families and their advisors with the full Singapore family office setup process — including fund vehicle incorporation (company, VCC, LP), Section 13O and 13U applications, ongoing MAS compliance, and corporate secretarial services for both the fund and the management entity.

Contact us to discuss your family office requirements in confidence.

— The Editorial Team, Raffles Corporate Services