☰
IMC Logo
×
Why Singapore’s Single Family Offices (SFOs) are now becoming so Hugely Popular

Why Singapore’s Single Family Offices (SFOs) are now becoming so Hugely Popular?

  • Modified On: January 12, 2026

Follow Us

Share

Share on facebook
Share on twitter
Share on linkedin
Share on email

Summary

Singapore has established itself as a leading hub for SingleFamily Offices (SFOs), with numbers rising from 400 in 2020 to 1,650 by mid-2024. Its attractiveness stems from political stability, favourable tax policies, robust infrastructure, and a talented workforce. SFOs oversee wealth management, succession planning, compliance, and philanthropy for ultra-high-net-worth families, often combining in-house investments without sourced services. Recent tax reforms, including Section 13OA, further enhance Singapore’s reputation as Asia’s premier wealth management centre.

Singapore’s origin as a financial hub can be traced back to the British colonial time and the sea city in recent years has attracted many tourists and wealthy individuals to its shore for anchoring their businesses and establishing their families. The country has demonstrated significant resilience in financial sectors amidst the covid 19 pandemics and performed better than many of its Asian peers by registering new company formation in Singapore.

Individual wealth and private capital have grown significantly over the past decade and Singapore has witnessed a surge in Single-Family Offices (SFOs) growing fivefold over the past couple of years.

In 2020, only 400 single family offices (SFOs) received tax incentives from the Monetary Authority of Singapore (MAS). By the end of 2023, this figure had surged 3.5 times to 1,400, and further increased to 1,650 within the first eight months of 2024.

This steady rise highlights Singapore’s strong position as a preferred hub for wealth and asset management in Asia. In line with this, the city-state’s wealth management assets under management (AUM) grew by more than 8% in 2023, extending the growth momentum seen over recent years.

Why Singapores Single Family Offices

What are Single Family Offices?

SFOs are privately managed wealth management entities designed and developed to fulfill the needs of Ultra-High-Net-Worth-Individuals (UHNWIs) by providing unique solutions for wealth, finances and many other affairs of a UHNWI’s family.

Though managing investments and related finance and administration activities are the key functions, the SFOs may also involve other activities including management of accounts, tax filing and compliance, managing charities, family governance and lifestyle management, risk management and wealth and succession planning.

Generally, financial advisors, investment analysts, legal and tax professionals are employed by SFOs for wealth planning and operational matters.

Why is Singapore chosen for Single Family Offices?

A growing number of SFOs in Singapore can be attributed to the following factors:

  • A leading regulatory environment for financial institutions across Asia and worldwide.
  • Reduced risks of regulatory changes and business environment.
  • Political stability.
  • World Class infrastructure.
  • Transparent Legal System.
  • Presence of investment and international banks.
  • Regulated financial market.
  • High standard of living.
  • Expertise in business services, banking and Fintech.
  • A competitive corporate tax rate.
  • Strategic location in the middle of Asia.
  • Good Business connectivity.
  • Availability of financially skilled manpower. No Bureaucracy.
  • Availability of Tax Incentives.

What are the Activities carried out by Single Family Offices?

There are a few activities SFOs excursively carry out in-house while others are fully or partially outsourced.

The tasks that usually come under the purview of the SFOs are

  • Technologies usually outsourced except for the handling of social media.
  • Bookkeeping, accounting, budgeting and cash flow planning are often outsourced to accounting services in Singapore.
  • Tax and wealth planning, only regulatory compliance is done in-house while tax planning is outsourced.
  • Operations except hiring and employment are usually managed by external services.
  • Investments including planning, policymaking, asset allocation are done in-house.
  • Legal services are outsourced.
  • Family governance, education and succession planning are mostly outsourced.
  • Charitable services are managed by external sources.
  • Risk management about fraud and data theft, insurance, managed both in-house and by external agencies.

What is the business form of Single-Family offices?

An SFO structure normally involves a holding company or a trust directly owning both the SFO and the fund entity as assets. Single-family offices are normally formed by wealthy families desirous to manage and control their finances, businesses and various aspects of their lives and each beneficiary is a connected person to the settlers of that trust or a charity.

The SFO structure aims for achieving dual purposes, firstly obtaining the licensing exemptions and then availing tax exemptions including tax incentives. However, being eligible for tax incentives under the Income Tax Act, a fund manager must have real operations in Singapore as per the Section 13X incentive. The law also stipulates that an SFO must engage a minimum of three investment professionals, each having five years of investment experience.

The register of shareholders of the holding company is centrally maintained and treated as a non-public register with effect from 2020 and the information on ultimate beneficial owners are never shared.

Likewise, the trust companies are needed to collect and maintain information about the ultimate beneficial owners of the trusts they administer, but there is no public register of trusts or their ultimate beneficial owners.

How are Single Family Offices incorporated?

Several regulatory and administrative requirements are involved in establishing an SFO including the registration of the corporate structures, bank account opening, annual filing of tax returns and adhering to common reporting standards (CRS) and foreign account tax compliance act (FATCA).

By incorporating your Singapore Company on an SFO platform, you will enjoy several benefits including easy wealth transfer without probate, asset protection, asset allocation flexibility considering future succession planning, confidentiality, and ease of charities and donations.

Singapore Trust Companies Act (Cap. 336) applies to SFOs with the MAS as the regulatory authority. Wealthy families can either choose to outsource a licensed professional trustee or set up their own Private Trust Companies (PTC) requiring no licence. A licensed trust company however must be engaged in monitoring counter money laundering and terror financing activities.

Setting up an Single family office in Singapore is mostly simple and straightforward however corporate service providers with adequate fund management and administration expertise often become the necessity for effective SFO operations who can help evaluate ongoing NAVs and performance about other asset classes, identify annual audit and exemption requirements, choose annual and semi-annual financial reporting, register with ACRA, engage a company secretary and appoint a nominee shareholder for signing company’s constitution.

How is the taxation for Single Family Offices?

The prevailing corporate tax rate is 17% in Singapore on income sourced and/or remitted in the country. There is no capital gains tax with many tax exemptions available. Singapore also entered the Double Tax Avoidance Agreement (DTAA) with many countries and offers tax exemption to resident corporate taxpayers on foreign dividends.

The legal and tax environment makes Singapore a preferred destination for establishing an SFO and the following points are considered from a taxation perspective

  • Individual tax residency based on the number of days spent in Singapore.
  • Compliance obligations.
  • Reporting requirements under CRS.
  • Transfer pricing.
  • Immigration under Global Investor Program.
Family Office Singapore

Change to Income Tax Act; Effective January 1st, 2025

The Monetary Authority of Singapore (MAS) has revised the tax incentive schemes for funds managed by Singapore-based fund managers under Sections 13O, 13U, and 13D of the Income Tax Act 1947 (ITA), with effect from 1 January 2025. In addition, a new Section 13OA has been introduced, allowing Limited Partner (LP) funds to benefit from the 13O scheme, which was previously limited to Singapore-incorporated companies.

Comparison of Section 13O vs Section 13U (2025 Changes)

Criteria Section 13O (Singapore-incorporated funds) Section 13U (Larger funds / institutional)
Minimum AUM Requirement Min. S$5 million (US$3.6m) in Designated Investments (DI) by Year 3 (previously no AUM condition). Min. S$50 million (US$36.5m) in DI at each FY-end (previously lower requirement at application only).
Local Business Spending (LBS) Tiered spending between S$200,000 (US$146k) and S$500,000 (US$365k) annually, depending on AUM (previously fixed at S$200k). Similar tiered LBS requirement based on AUM; closed-ended funds may meet cumulatively with partial waivers in years 6 and 11.
Investment Professionals (IPs) Must employ at least 2 investment professionals throughout the basis period (new requirement). Same as 13O: must employ at least 2 investment professionals.
New Company Condition Condition removed – funds no longer need to be newly set up to qualify. MNot applicable (already covered for broader structures).
30/50 Rule Restriction on non-qualifying investors removed from YA 2025 for trusts/unit trusts incentivised under Section 13D. Not applicable.
Investment Strategy Flexibility Still applies but with fewer restrictions compared to earlier years. Funds are no longer limited to MAS pre-approved strategies, offering managers more freedom.
Closed-Ended Funds Allowed, but must meet revised AUM and LBS annually. Allowed, with cumulative compliance flexibility and waivers during divestment years.
Grace Period Existing funds have until FY ending 2027 to comply. Compliance required immediately for new applications from 2025.

Section 13D Tax Incentive Changes

Criteria Details
Scope Applies to prescribed persons (non-resident individuals, companies, or trust entities) managed by a Singapore fund manager.
Investment Professionals (IPs) From FY ending 2027, Section 13D fund managers must employ at least 1 IP per FY.

New Section 13OA Tax Incentive (for LP Funds)

Category Details
Scope Extends Section 13O scheme to Singapore-registered Limited Partnership (LP) funds.
Conditions All Section 13O requirements apply at the LP level. The general partner is responsible for compliance.

New Options for Closed-End Funds

Category Details
Eligibility Available for non-SFO Section 13O, 13OA, and 13U applicants.
Quantitative Conditions Certain requirements waived during the divestment phase.
Revocation Tax incentive ends at the close of the divestment phase or after the 20th incentive year, whichever comes first.

New Application Process

Category Details
Effective Date From 2 January 2025.
Process All applications must be submitted via the MAS Tax Scheme portal.
Benefits Single-step process, faster approvals. Streamlined for SFO-managed funds, replacing the previous multi-stage submission via email and portal.
Introduction of Section 13OA for Limited Partnership Funds

What is Section 13OA?

Section 13OA extends Singapore’s tax exemption framework to funds established as Limited Partnerships (LPs). This initiative provides greater structuring flexibility, particularly for private equity and venture capital funds.

Key Requirements

AUM Threshold: LP funds must maintain at least S$5 million in Designated Investments (DI).

Local Business Spending (LBS): Annual spending obligations range between S$200,000 and S$500,000, based on fund size.

Investment Professionals: Each fund must employ at least two qualified investment professionals.

Closed-Ended Fund Provisions

Closed-ended funds, operating with defined investment horizons, receive tailored treatment. For the first five years, they must maintain a minimum AUM of S$50 million annually, after which the requirement is waived. LBS may be aggregated over the first ten years, with obligations fully waived from the eleventh year onward. Incentives continue until the earlier of a fund’s divestment phase or 20 years. This approach balances regulatory substance with operational flexibility.

Simplified Application Process

The Monetary Authority of Singapore (MAS) has launched a digital portal to streamline tax incentive applications. This system reduces compliance burdens, increases transparency, and accelerates approval timelines.

Strengthening Singapore’s Position in Wealth Management

These 2025 updates reinforce Singapore’s standing as a premier hub for fund management. By introducing Section 13OA, raising thresholds, and easing outdated restrictions, the city-state continues to attract global investors and family offices while supporting sustainable industry growth.

Section 13O vs Section 13OA (from 2025)

Criteria Section 13O (Companies) Section 13OA (Limited Partnerships)
Fund Structure Applies only to Singapore-incorporated companies. Applies to Singapore-registered Limited Partnerships (LPs).
AUM Requirement Min. S$5 million in Designated Investments (DI) annually. Same as 13O: Min. S$5 million in DI annually.
Local Business Spending (LBS) Tiered requirement of S$200,000 – S$500,000 annually based on AUM. Same tiered requirement as 13O. For closed-ended funds, LBS may be aggregated over the first 10 years, waived from year 11.
Investment Professionals (IPs) At least 2 investment professionals required. Same requirement: at least 2 investment professionals.
Closed-Ended Funds Allowed, but must comply annually with AUM and LBS thresholds. Tailored rules: S$50 million AUM needed for first 5 years only; waived thereafter.
Duration of Incentive Incentive remains valid until the end of the divestment phase or maximum of 20 years. Same duration: until divestment phase or 20 years, whichever comes first.
Responsibility for Compliance Company itself responsible for compliance with conditions. LP structure: Compliance rests with the General Partner of the LP fund.
Application Process Digital MAS Tax Scheme portal (effective 2025). Same streamlined portal applies.
What is family wealth is invested by Single Family Offices?

The SFOs normally don’t focus on equity investment of other companies shares and normally make their major investments in

  • Buying residential properties.
  • Buying shares of private equity firms.
  • Real estate investment.
  • Ownership and investment in fund structures.

A Single Family Office (SFO) typically manages and invests the wealth of one ultra-high-net-worth family. The investments often include a mix of:

Equities and bonds – both domestic and international markets for long-term growth and income.

Real estate – commercial and residential properties, often in prime global locations.

Private equity and venture capital – stakes in private companies, startups, and emerging businesses.

Alternative assets – hedge funds, commodities, art, or collectibles to diversify portfolios.

Philanthropy and impact investments – charitable foundations or sustainable projects aligned with family values.

In essence, an SFO is designed to preserve, grow, and transfer family wealth across generations while aligning investments with the family’s goals.

What are the challenges encountered by Single Family Offices?

The following are the three issues encountered by SFOs in Singapore

  • Cross-border tax issues at the individual level due to the presence of a family in several tax jurisdictions due to its global presence.
  • Inefficient tax structure due to inappropriate business form.
  • Lack of a formalised governance structure due to the absence of proper policies and procedures.
Conclusion

High-net-worth families have currently embraced Singapore for setting up SFOs though traditionally they have been popular and well-established in North America and Europe.

The high growth trajectory of SFOs in Asia is comparatively recent and projects the unprecedented economic upliftment of this continent. Wealth accumulation has become faster by businesses in Asia than in any other part of the world and also driving new SFOs being formed in Singapore.

The need for proper succession planning has never been so important before the tremendous rise in family wealth and can only be successfully addressed by outsourcing professional service providers.

Expand your business faster with our Global Capability Center

Global Entity Management is more than compliance

Let’s build the full structure right

Recent Posts

Don’t rely on assumptions

Conduct Due Diligence across HR, financial, and operational areas.

Your Vision, Our Mission.
Let's Discuss.

Contact Us
IMC Logo
Your Vision, Our Mission.
Let's Discuss
Make an Enquiry
Linkedin-in X-twitter Facebook-f Instagram Youtube
Get Started
About
Our Offices

UAE

NBQ Building, Office no. 303, P.O. Box 115887,
Khalid Bin Al Waleed Road, Bur Dubai,
United Arab Emirates

SINGAPORE

143 Cecil Street,
25-04B GB Building,
Singapore – 069542

INDIA

No.7 Sriji Palace,
17, E.V.K Sampath Road,
Vepery, Chennai – 600 007

© IMC
WhatsApp Icon
✖
IMC Logo IMC Group
WhatsApp Icon Start Chat