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

Singapore has cemented its reputation as Asia’s premier wealth management hub, and at the centre of that story sits the single family office (SFO). For ultra-high-net-worth families, the appeal is straightforward: a politically stable jurisdiction, a deep professional ecosystem, robust regulatory oversight by the Monetary Authority of Singapore (MAS), and two well-defined fund tax incentive schemes — Section 13O and Section 13U of the Income Tax Act 1947 — that can lawfully exempt qualifying investment income from Singapore tax.

But the rules have tightened materially over the past few years. The MAS has progressively raised assets under management (AUM) thresholds, mandated higher local business spending, fixed clearer staffing requirements, and required a meaningful Singapore investment quota. Families who set up before April 2022 enjoyed a far more permissive regime; those applying in 2026 must meet the upgraded criteria.

This guide walks you through how a single family office is structured in Singapore, the differences between Section 13O and Section 13U, the latest application requirements, and the practical steps from incorporation to MAS approval. If you would prefer to delegate the entire setup, our affiliated firm Raffles Corporate Services handles family office structuring end-to-end.

What is a single family office in Singapore?

A single family office (SFO) is an entity that manages the investment assets of one family — typically a family holding company, the underlying fund vehicle, and any related private wealth structures. It is distinguished from a multi-family office (MFO), which manages assets for multiple unrelated families and is required to hold a Capital Markets Services (CMS) licence under the Securities and Futures Act 2001.

Crucially, an SFO is exempt from holding a CMS licence under the licensing exemption set out in paragraph 5(1)(b) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations, because it manages funds only for connected persons within a single family. This exemption is what allows families to run their own investment operations without becoming a regulated fund manager.

A typical Singapore SFO structure has three core entities:

• A family holding company (the apex holding vehicle, often offshore or a Singapore Pte Ltd).
• A fund entity (the vehicle holding investable assets — usually a Singapore Pte Ltd for 13O, or any approved structure for 13U).
• A fund management company (the SFO itself — a Singapore Pte Ltd that manages the fund entity’s assets).

For a primer on incorporating the underlying companies, see our guide to setting up a Singapore company for foreigners.

Section 13O vs Section 13U: which scheme is right for you?

Both schemes are administered by the MAS and grant a tax exemption on “specified income” derived from “designated investments” held by the fund entity. The main differences relate to AUM thresholds, fund vehicle flexibility, headcount, and local spending. The table below summarises the position as updated by MAS from 5 July 2023, with refinements continuing through 2025 and 2026.

Approved Singapore investments

The Singapore investment quota can be satisfied through a defined list of categories, which include equities listed on SGX, qualifying debt securities, funds distributed by Singapore-licensed managers, private equity investments into non-listed Singapore-incorporated operating companies, and climate-related investments such as blended finance structures with substantial Singapean involvement. The MAS frequently refreshes the list — confirm the current categories at the time of application via the official MAS fund tax incentive scheme page.

Local business spending: what counts?

LBS is what the fund entity spends in Singapore each year — not what the family spends. Qualifying expenses include: management fees paid to the SFO, salaries of Singapore-based employees, professional fees (legal, accounting, tax, custody), fund administration, audit, business travel costs, and rent for the SFO’s Singapore premises.

The 2026 application process: step by step

Setting up a Section 13O or 13U family office is a project that typically spans 4–9 months from kick-off to MAS approval. Below is the practical sequence.

Step 1: Pre-application structuring

Decide between 13O and 13U based on the family’s current and projected AUM, preference for an onshore vs offshore fund vehicle, and tolerance for staffing commitments. Engage a Singapore tax adviser early — the MAS expects to see a coherent investment thesis, governance structure, and economic substance plan before the application is filed.

Step 2: Incorporate the SFO and fund entity

The SFO is incorporated as a Singapore private limited company under the Companies Act 1967. Standard requirements apply: at least one local resident director (see our resident director guide), a qualified company secretary appointed within 6 months under Section 171 of the Companies Act, and a registered office address.

For Section 13O, the fund entity is also a Singapore Pte Ltd (or a Variable Capital Company, where appropriate). For Section 13U, families often use a Cayman exempted company or limited partnership for tax neutrality at the fund level — provided economic substance is maintained in Singapore through the SFO.

Step 3: MAS application

The application is made to MAS using the prescribed form, supported by:

• A detailed investment strategy and asset allocation policy.
• Source-of-funds documentation for the AUM.
• Organisation chart, governance arrangements and family tree.
• Five-year LBS budget and Singapore investment plan.
• CVs of the investment professionals and senior management.
• KYC/source of wealth documentation for the family principals.

MAS reviews each application on its merits and may request supplementary information. Approval is granted for a defined fund — if the family later wishes to restructure or add new vehicles, separate applications are typically required.

Step 4: Employment Pass applications for the family and IPs

Family principals relocating to run the SFO will usually apply for an Employment Pass (EP) sponsored by the SFO itself. This requires the SFO to satisfy MOM’s COMPASS framework, including the qualifying salary and the Complementarity Assessment. EntrePass is usually unsuitable for this profile because of revenue/innovation requirements.

For an overview of the work pass options for relocating family members and key staff, see our work pass guide. Detailed PR pathways are covered in our article on obtaining Singapore PR through the Global Investor Programme.

Step 5: Operational substance build-out

Once the structure is approved, the SFO must operate substantively in Singapore. This means hiring the required investment professionals, holding board meetings in Singapore, executing investment decisions locally, and incurring qualifying LBS each year. The fund entity files an annual return to MAS evidencing continued compliance.

Tax treatment in detail

Both schemes operate as tax exemptions, not deductions or credits. Specified income from designated investments — primarily dividends, interest, gains on the disposal of investments, and certain swap income — is exempt from Singapore tax in the hands of the approved fund. The SFO itself, as a Singapore management company, is taxed on its management fee income at the prevailing 17% corporate rate, although the partial tax exemption and start-up tax exemption may apply in early years.

It is critical to note the schemes do not exempt income that falls outside the “specified income” definition, nor does either scheme override the Singapore non-resident withholding tax rules — see our guide to the tax treatment of foreign income for related considerations.

Common pitfalls and how to avoid them

From advising on family office setups, we see the same errors recur:

• Underestimating LBS. Families sometimes assume the SFO’s overhead alone will satisfy the LBS minimum. For larger funds, S$1m a year is a real number — it requires properly resourced operations, not a paper presence.
• Ignoring the Singapore investment quota. The 10% test is checked annually. A fund that drifts into entirely offshore positions will jeopardise its approval.
• Family-only IP roster. The non-family member IP requirement is non-negotiable. Hiring a relative or close associate with a tenuous independent track record is a known red flag in MAS reviews.
• Mischaracterising income. Active trading or business income that does not qualify as specified income from designated investments is taxable. Document the investment decision-making process thoroughly.
• Insufficient governance. MAS expects to see formal investment committees, written policies, and audit trails — not handshake decisions in family group chats.

For broader compliance touchpoints once the structure is up and running, our compliance requirements article remains a useful checklist.

Costs and ongoing budget

A realistic first-year budget for a Section 13O SFO sits in the region of S$300,000–S$500,000 (incorporation, professional fees, salaries for two IPs, office, audit, MAS application). A Section 13U operation typically runs S$700,000–S$1.5 million in year one, given the larger headcount and higher LBS commitment. Recurring annual operating cost beyond year one tends to be 70–85% of year-one costs, scaled to AUM.

These figures exclude investment costs and assume modest premises in the CBD or a serviced office. Families intending to add private aviation, art collection management, or philanthropic vehicles should budget separately.

Should you set up in Singapore?

Singapore’s combination of regulatory clarity, treaty network (more than 90 double tax agreements via IRAS), the Variable Capital Company structure for funds, and a deep service-provider ecosystem makes it the preferred onshore base for Asian and Asia-allocated wealth. Hong Kong remains a meaningful competitor; mainland Chinese families increasingly look at Dubai for diversification. But for families seeking long-term residency alongside investment management, Singapore continues to lead.

The 2022 and 2023 tightening of MAS rules has had a healthy filtering effect — applications today are more substantive, and approved offices operate with real economic substance. That is good for families who want their structure to withstand future regulatory or political scrutiny.

Conclusion

Setting up a Singapore family office in 2026 is a serious undertaking — but for the right family, the structural, tax, and lifestyle benefits are difficult to replicate elsewhere in Asia. The decision between Section 13O and Section 13U turns on AUM, structural preferences, and how much operational footprint the family is willing to maintain. Both schemes reward discipline in planning, documentation, and ongoing compliance.

If you are evaluating Singapore as a base for your family’s wealth management — whether structuring from scratch or migrating an existing offshore office — Raffles Corporate Services can guide you through scheme selection, MAS application, incorporation, and ongoing administration. Our family office team works alongside Singapore tax counsel and licensed fund administrators to deliver a turnkey solution.

— The Editorial Team, Raffles Corporate Services