Success Story: How to create a Family Office in Singapore? Go Global Gem tailors it to your needs!

According to Wealth Briefing Asia, Singapore has become a top destination for family offices, with the number of family offices in the country reaching 400 last year, double the number of previous years.
More and more companies are coming to Singapore to set up family offices or satellite offices to complement their investments in the region. What’s attracting them?

① Advantages of having a Family office in Singapore

1. Why set up a Family office in Singapore?
A family office is a full-service wealth management organization for high-net-worth (HNW) family clients.
Family offices provide families with an efficient and transparent structure for managing their wealth and investments. The family charter and investment mandates set by the founding members ensure that they are in line with the family vision, allowing family legacies to be protected and passed down from generation to generation. This will help reduce disputes between family members and ensure the continued prosperity of the family business.
How does one create a successful Family Office? It takes the right structure, solid governance, a competent leadership team, and the right external professionals.

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2. What are the advantages of setting up a family office?
a. Provide structured strategies for the management and preservation of family wealth.
b. Enabling the exploration of topics such as succession planning and inheritance.
c. Improving risk management.
d. Educating young family members about investments.
e. Structuring formal philanthropic, ESG and impact investing structures.
The professional family office consultant team built by Go Global Gem will discuss with the families about their plans to set up family offices, and participation in the whole process of setting up family offices to integrate family investment needs and help family enterprises achieve their wealth goals.

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② The Family Office that Ms. L set up in Singapore

Ms. L. studied accounting during her college years and was passionate about financial management and investment. After graduation, she worked in an accounting position in an organization, and thereafter, held important positions in the organization such as financial management.
After years of experience, Ms. L has acquired a wealth of experience in financial management and financial investment. In recent years, she has started to focus on identity allocation planning and overseas asset allocation planning.
As one of the four global financial centers, Singapore has a stable political and legal environment as well as a good business environment, and is relatively close to China, with basically no time difference.
As her personal and business assets continue to grow in value, Ms. L’s salary and income have fully met the requirements of the Singapore’s Employment Pass (EP) application. Due to the preparation of quasi points, Ms. L’s EP pass application was quickly approved. Soon, Ms. L will be moving to Singapore to develop her own family office business.

③ What’s the difference between 13O and 13U?

In April this year, Singapore adjusted its home office policies 13O and 13U accordingly. The biggest differences between the two are:
First, the capital threshold, 13O is 10 million SGD and 13U is 50 million SGD. Second, 13O can apply for two EPs, and 13U can apply for three EPs.
1. 13O policy adjustment
a. 13O The application threshold is adjusted to 10 million SGD and the asset management scale will be increased to 20 million SGD within two years;
b. At least 2 investment managers shall be hired, either family or non-family members;
c. The 13O structure cost is required to be 200,000 SGD when the asset management scale is below 50 million SGD; 500,000 SGD when the asset management scale is between 50 million SGD; and 100 million SGD, and 1 million SGD when the asset management scale is above 100 million SGD;
d. At least 10 per cent (or 10 million SGD) of the family office funds need to be invested in local investment products in Singapore.

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2. 13U policy adjustment
a. 13U application threshold fund remains unchanged at 50 million SGD;
b. At least 3 investment officers shall be hired. If this requirement cannot be met at the time of application, 3 investment officers shall be hired within 1 year (one of whom must be a non-family member);
c. 13U structure cost is required to be 500,000 SGD when the asset management scale is below 50 million SGD; 500,000 SGD when the asset management scale is between 50 million SGD and 100 million SGD; and 1 million SGD when the asset management scale is above 100 million SGD;
d. At least 10 per cent (or 10 million SGD) of the family office funds need to be invested in local investment products in Singapore.

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④ What will you gain by setting up a family office in Singapore?

1. Advanced Financial Services Center
Singapore is a mandatory channel to access markets in the South East Asia region.
2. Lower Tax Rate
Corporate income tax (17%), personal income tax (0% to 22%).
3. The Gathering Place of the Riches
Many high-net-worth individuals and trust-worthy advisors are settled in Singapore.
4. Immigration Plan
Singapore’s Single Family Office can be used for immigration planning, either as a sponsor for Employment Pass applications or for HNW family members to apply for permanent resident status in Singapore under the Global Investor Program (GIP) framework.
5. Regulatory and Tax Exemptions
Singapore’s Single Family Office structure can provide fund management services in the process. Part of the regulatory regulations in the framework of the Singapore Financial Instruments Act can be exempted, and can benefit from the SG Fund Tax Incentives.
6. Family Trust
Singapore is a widely acclaimed jurisdiction for the establishment and management of trusts. Singapore single family office and its funds are commonly established as part of the family trust.

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Go Global Gem, an up-and-coming internet-based integrated accounting firm based in Singapore.
With an experienced overseas localization team and over 20 years of industry experience, we focus on providing business solutions for offshore companies in tax compliance, finance, global identity planning, family offices, business relocation, compliance licenses, study abroad, business visas, human resources and other business solutions, and are a loyal partner for companies’ global business expansion.
If you are planning to set up a family office in Singapore, please contact us. We will provide you with business services, overseas asset allocation, overseas identity planning and other integrated offshore solutions.

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