As a city, Singapore is no stranger to wealth.
Regarded as the 5th wealthiest city in the world, it is home to 41 billionaires and nearly 270,000 millionaires.
As one of the most prominent global hubs for wealth management and financial services, it’s little surprise why Singapore has caught the attention of high-net-worth individuals (HNWIs) seeking sophisticated and personalised financial solutions.
Singapore’s family office ecosystem is booming - home to over 1,400 single-family offices; it’s an attractive base to manage your wealth effectively, ensure long-term family legacy planning and simplify the complexities of your financial portfolios.
More and more affluent families are racing to understand how to set up a family office in Singapore. If you’ve found yourself asking, ‘What is a family office?’ this blog is for you.
Join us as we explore the process of setting up a Singapore family office, along with roles that could help it thrive.
What is a family office?
As a bespoke, multi-generational fund management vehicle, the family office structure in Singapore is effective and enticing. According to Miki Doan, Practice Manager and specialised financial services consultant at Robert Half Singapore, it’s a model that has experienced remarkable growth.
She says, “It’s expected that the number of new single-family offices for 2024 will surpass the 300 that were added in 2023. I credit this to the customisable nature of family offices – no two families are alike, and their wealth management solutions shouldn’t be either. An effective family office model addresses unique family needs through tailored services focused on the longevity and growth of the family’s assets.”
Covering the holistic realm of financial affairs, a Singapore family office goes beyond mere management of a family’s wealth. From budgeting to family governance, real estate to risk management, the family office is a comprehensive strategy to safeguard and optimise wealth for a family now and in generations to come.
Experts predict that financial wealth in Asia (excluding Japan) could outstrip the US by 2025. Miki says this has boosted Singapore’s allure as a family office destination.
“As Singapore continues to establish a foothold as a prominent global hub for family offices, HNWI’s are noticing the appeal. As an international financial centre, it’s a dynamic hub for multinationals - our stable currency, rule of law and high quality of life make it quite compelling. Combined with a low corporate tax rate and strategic position as a gateway to the Asia-Pacific region, it’s an ideal base for HNWIs and their families,” Miki says.
Related: Why set up a family office in Singapore?
How to set up a family office in Singapore
Affluent families have a range of options for navigating the complexities of wealth preservation and succession planning. If you’re wondering how to set up a family office in Singapore, you might be unsure where to begin.
With our tips below, you can optimise the processes (and your family office) to help guide smooth operations, strategic investment decisions and sound compliance.
1. Get advice
Miki says sound advice is invaluable for any new family office.
“I can’t overstate how important it is to enlist the services of a professional advisor. They can guide you through the entire process, from choosing the right legal structure to selecting the necessary talent, “she says.
In Singapore, a family office is typically set up as either:
A Private Limited Company (PLC) - offering limited liability and a separate legal entity.
A Limited Liability Partnership (LLP) - combining the flexibility of a partnership with the limited liability of a company.
Determining the right set-up is critical to the success of your family office.
Miki says, “With so much at stake, the right guidance must be a priority. If you’re questioning ‘What is a family office?’ and ‘How do I set one up?’, I would highly recommend speaking with our dedicated experts at Robert Half.”
“As the leading family office recruitment agency, our team is well-poised to provide insightful advice. We’ll work with you to place qualified experts who can meet your long-term goals and ensure quality wealth management for future generations,” says Miki.
Contact Robert Half today to find out more.
2. Determine your legal structure
Access to qualified counsel is instrumental in all stages of a family office set-up, particularly when determining your legal structure.
In Singapore, family offices can be set up as a single-family office (SFO) or a multi-family office (MFO). The structure can vary depending on your family’s needs and the services offered. Knowing which one is right for you and your family is crucial, as the structure can impact the dynamics and roles within your family office.
Let’s take a look at the defining features of each:
Single-Family Office (SFO)
An SFO exclusively serves one family, offering bespoke and personalised management.
The pros
Only serving one family, an SFO offers a high degree of privacy and control.
SFOs have flexibility in their investments and often operate without the need for a financial services license if they meet specific criteria.
An SFO is fully customised to meet the specific needs of a family.
The cons
SFOs can be costly to establish and maintain.
An SFO requires a significant level of assets to justify the expense.
Multi-Family Office (MFO)
An MFO serves multiple families, pooling resources to offer a broader range of services, often requiring licensing.
The pros
Serving multiple families, an MFO allows for cost-sharing and access to a broader range of services (i.e., investment management and lifestyle concierge).
The cons
MFOs typically don’t offer the same level of personalisation as an SFO.
MFOs generally require licensing and regulatory compliance under Singapore's financial laws.
Miki says choosing the right structure depends on the family’s priorities around privacy, control, and cost efficiency.
“SFOs are proving to be very popular among HNWIs due to their tailored investment strategies and tax incentives. While they offer premium privacy and control, they do require significant resources to operate,” says Miki.
“On the other hand, an MFO is certainly more cost-effective – in my experience, it just can’t provide the same level of customisation as an SFO.”
After setting up your legal structure, be sure to apply for any relevant tax incentives and register with the Monetary Authority of Singapore (MAS), if applicable.
Incentives like the Enhanced-Tier Fund Tax Incentive Scheme (13X) and the Singapore Resident Fund Scheme (13R) allow tax exemptions on qualifying income from designated investments where certain conditions have been met.
While registration with the MAS is not legally required for SFOs, it is often advisable in the interest of transparency, credibility and long-term regulatory compliance.
Related: How to start a private equity firm with the right team
3. Obtain licenses and permits
Depending on the specific activities of your family office, you may need to obtain licenses or permits from relevant authorities. Miki says this can be a daunting task for a new family office.
“I get asked many questions about how to set up a family office in Singapore. Licensing and permits are one of the main areas of confusion for families entering the family office ecosystem,” she says.
“Again, I always stress the importance of qualified guidance. There are different licensing requirements for different kinds of family offices, so take the time to consult legal and regulatory experts who can help you navigate the requirements and ensure compliance with Singapore’s regulatory standards. Engaging with MAS early in the process is also wise,” Miki says.
Let’s take a look at some of the typical requirements for SFOs and MFOs in Singapore:
Single-Family Office (SFO)
Licensing Exemption: SFOs do not generally require a license from the MAS, providing that they only manage assets for one family. As they are not considered to be offering financial services to the public or multiple clients, they can technically operate without a financial services license.
MAS Guidelines: While an SFO is not required to be licensed, it must meet certain MAS guidelines to qualify for tax incentives. This includes a Minimum Assets Under Management (AUM) of SGD 50 million. Additionally, Singapore’s Resident Fund Scheme requires the employment of at least two local investment professionals to be considered for specific tax incentives.
Multiple-Family Office (MFO)
Fund Management License: Because an MFO provides asset management services to multiple families, they are classified as fund managers. As such, they generally require a Capital Markets Services (CMS) License under Singapore’s Securities and Futures Act (SFA).
Financial Advisory License: If an MFO provides financial advisory services beyond asset management (i.e., investment advice), it may also require a Financial Adviser’s License under the Financial Advisers Act (FAA).
Exemptions: In some cases, smaller MFOs who manage assets for fewer families may apply for licensing exemptions. The MAS will evaluate on a case-by-case basis, providing that the MFO meets certain criteria.
“Securing the right licenses is a big step forward in the Singapore family office ecosystem. If your family can work hard to demonstrate regulatory compliance, it will go a long way in gaining credibility in this notoriously regulated environment,” says Miki.
4. Set clear guidelines
Establishing clear guidelines for investment, governance, risk management, and compliance is crucial when setting up a Singapore family office.
Miki believes it is instrumental in ensuring that your family office operates transparently and responsibly.
She says, “Taking the time to carefully define your policies on investment strategy, risk tolerance, and compliance is so important. It’s a vital step in ensuring that all family members are on the same page about long-term goals and expectations. It also ensures that your operations adhere to Singapore’s strict regulatory environment to safeguard your wealth and reputation.”
A reputable advisor like Robert Half can help your family establish a transparent framework to support growth, trust and compliance.
As part of this process, be sure to take the time to:
Establish your family charter – This serves as the foundation for the office, outlining your family’s values, goals and long-term vision.
Decide which assets will be managed – Consider which assets will be managed by the family office and work with professional advisors to optimise your asset management strategies. Assets may include real estate, stock investments, art and private equity.
Choose which services your family office will provide – Select the services that reflect the specific needs of your family (i.e., financial planning, wealth management, tax advisory, etc).
5. Integrate the right technology
Wondering how to set up a family office in Singapore? Don’t discount the value of your operational infrastructure.
Miki believes that tech tools add enormous value to the day-to-day operations of a family office.
“Operating effectively and efficiently comes down to the right tools. Ideally, your technology solutions should support different pillars of your family office, including investment management, data security, compliance and administration. Your tech should help to promote smooth operations and smart, data-driven decisions,” she says.
Let’s take a look at some key technology solutions that have helped to streamline the operations of Singapore family offices:
Portfolio management software – Addepar, eFront and Archway.
Collaboration and communication tools - Microsoft Teams, Slack, and Zoom.
Accounting and financial reporting software - QuickBooks, Sage Intacct and NetSuite.
Compliance and risk management software - ComplySci, KYC (Know Your Customer) software, and AML (Anti-Money Laundering) platforms.
Cyber-security solutions - Firewalls, multi-factor authentication (MFA) software, endpoint protection platforms, and VPNs.
CRM and document management systems - Salesforce (CRM), DocuWare (DMS), and iManage.
Investment and research analytics platforms - Bloomberg Terminal, Refinitiv Eikon, and PitchBook.
6. Hire your team
In a Singapore family office, people are powerful - they play a pivotal role in guiding strategy, operations and long-term success.
Miki says engaging a qualified team of local professionals is essential.
“Generally, family offices will require experts in finance, law, tax and administration. However, you must be diligent about staffing your family office with professionals who can address your family’s specific needs,” she says.
“This is an expert job in itself, so I always suggest partnering with a reputable recruitment specialist. At Robert Half, we specialise in assembling the right family office team. Our comprehensive candidate search and selection process will ensure only the most suitable individuals are presented for your consideration, saving you valuable time. Our goal is to find professionals who value loyalty and integrity to meet the present and future needs of your family office.”
Let’s take a look at the types of local experts that are required to establish and elevate your family office:
Investment Manager
Role: To oversee the family's investment portfolio, including asset allocation, risk management, and performance analysis.
Qualifications: A strong track record in investments, preferably with a focus on alternative investments.
Certifications: Chartered Financial Analyst (CFA) or Chartered Alternative Investment Analyst (CAIA) are often preferred.
Chief Financial Officer (CFO)
Role: To manage the family office's financial affairs, including budgeting, accounting and tax compliance.
Qualifications: A strong background in finance and accounting, with experience in financial reporting and tax planning.
Certifications: Chartered Accountant (CA) or Certified Public Accountant (CPA) are usually desirable.
Legal Counsel
Role: To ensure compliance with Singapore's legal and regulatory framework.
Qualifications: A law degree and experience in corporate law, tax law and estate planning.
Certifications: Admission to the Singapore Bar is essential.
Human Resources Manager
Role: Recruits, manages and develops staff within the family office.
Qualifications: Experience in human resources management with a focus on talent acquisition and retention.
Certifications: Certified Human Resources Professional (CHRP) or Certified Professional in Human Resources (CPHR) are often beneficial.
Compliance Manager
Role: To ensure adherence to regulatory requirements and best practices.
Qualifications: Proven experience in compliance, risk management or audit.
Certifications: Certified Anti-Money Laundering Specialist (CAMS) or Certified Internal Auditor (CIA) can be advantageous.
Chief Investment Officer (CIO)
Role: To oversee the family office’s investment strategy and portfolio management.
Qualifications: Extensive experience in investment management, with a focus on asset allocation, risk management and performance analysis.
Certifications: Chartered Financial Analyst (CFA) or Chartered Alternative Investment Analyst (CAIA) are essential.
Related: How to start a venture capital firm with the right expertise
Singapore’s reputation for prosperity and stability has captured the attention of many affluent families and HNWIs. As a financial hotspot, it’s little surprise why many are wondering how to set up a family office in Singapore. However, success isn’t guaranteed – it takes sound advice, a considered legal structure, appropriate licensing, clear guidelines, effective tech solutions and qualified talent to set your family office up for success.
By partnering with a reputable recruitment agency like Robert Half, you can navigate this complex terrain to leave a lasting legacy for generations to come.
Contact Robert Half for more information about our family service talent offerings.
Need help finding the right financial services professionals? Our specialised financial services recruitment team are here to help.
Frequently Asked Questions (FAQs)
What kind of talent do I need to run a family office in Singapore?
Family offices will generally require experts in finance, law, tax and administration.
Key positions within a family office include:
Investment Manager
Chief Financial Officer (CFO)
Legal Counsel
Human Resources Manager
Compliance Manager
Chief Investment Officer (CIO)
How do I find qualified professionals to manage and maintain my family office?
Partnering with a reputable recruitment specialist is a wise choice when finding the right professionals to manage and maintain your family office.
At Robert Half, we specialise in assembling the right family office team through a comprehensive candidate search and selection process.
This will ensure only the most suitable individuals are presented for your consideration, saving you valuable time.
Contact Robert Half today to discuss your specific needs.
What are the costs associated with setting up and running a family office?
The exact costs will vary depending on the size and scope of your family office. That said, it’s important to be mindful of the key expenses. These include:
Legal and regulatory costs
Tax planning and advisory fees
Technology and software costs
HR and staffing costs
Office costs
