How to Set Up Single Family Office in Singapore

Posted by InCorp Global on November 13th, 2020

In recent years, Asia has proven its pedigree as a world class area for global business and investment — and in that time, the region’s number of high net-worth individuals (HNWI) has grown by 7.6%. China itself continues it’s regional dominance, becoming home to the second largest group of billionaires in the world. 

With that wealth, comes responsibility. 

Responsibility to invest wisely, in a safe and politically stable locality, with the ultimate goal of assuring a family’s legacy for generations to come. 

It’s these factors that have led forward-thinking HNWI and ultra high net-worth individuals (UHNWI) from Asia and abroad to trust Singapore’s proven track record of prosperity and stability with the family office investment vehicle.

The family office is a truly bespoke, end to end, multigenerational fund management vehicle that covers everything from budgeting, to financial education for progeny, to personal protection services while travelling. 

Given the complexities of such a custom-made, all encompassing solution, setting up a home office is no simple task. With that in mind, let’s take a look at 10 steps for setting up a family office in Singapore.

1. Establish Your Family Charter

Given that your end game goal is to create a family legacy for generations to come, a family charter is essential to guide the strategic direction of your family office.

By sitting down with your family and your family office service provider, you should establish the goals, culture, and ideals you would like your legacy to achieve. 

It goes beyond investment strategy too — for example, do you want your children directly involved in future investment decisions, or would you like to create a reputation for charitable giving?

2. Decide Which Assets Will Be Controlled by Your Family Office

At this stage of your life, your investments are likely to be extremely varied, ranging from stocks and shares, to property, to fine art. Each class of assets will have specific needs in terms of tax responsibilities, so it’s advisable that you and your family office service provider decide how to treat each asset segment. 

For example, it may be decided that your property should be put into a private family trust under the umbrella of your family office to optimise your tax obligations.

Remember, a family office is a completely bespoke solution to your special needs, and no competent family office service provider would gloss over this step.

Read more on the things you must consider before Setting up a Family Office in Singapore at InCorp Global.