The Monetary Authority of Singapore (MAS) oversees the regulatory framework for family offices. While family offices don't demand a specific license from MAS when they serve only related family unit members, they need to adhere to certain guidelines and ensure proper structuring. For an SFO, the household must set up a legal entity, typically an exclusive limited company, to use the office. The entity must abide by local company laws, including registration with the Accounting and Corporate Regulatory Authority (ACRA) and compliance with the Companies Act.The MAS provides a wide definition of family, typically such as the family members, their spouses, and direct descendants. The household office must demonstrate so it serves only these related parties. For tax incentive purposes, particularly under the Enhanced-Tier Fund Scheme (13X) or the Financial Sector Incentive – Fund Management Scheme (13R), the household office must meet minimum asset under management (AUM) requirements, typically starting at SGD 50 million.

Singapore offers several tax incentives to attract family offices. The Enhanced-Tier Fund Scheme (13X) and the Financial Sector Incentive – Fund Management Scheme (13R) are particularly relevant. These schemes provide tax exemptions on qualifying income from designated investments, at the mercy of meeting specific criteria, such as for example minimum spending requirements on local business costs and hiring at the least three investment professionals. These incentives make Singapore an attractive hub for family wealth management.Establishing a family group office in Singapore involves setting up the correct legal structure. Most families choose a personal limited company because flexibility and limited liability protections. The company must have a minumum of one director who is ordinarily resident in Singapore, and it must maintain a registered office address in the country. Additionally, the household office must draft a definite charter or mandate outlining its governance structure, operational guidelines, and investment strategy.

An effective family office requires a skilled team to manage its operations. Singapore's pool of financial professionals, including investment advisors, tax experts, and legal consultants, causes it to be an ideal place for staffing a household office. Work must employ at the least three investment professionals to qualify for tax incentives Singapore family office requirements. These professionals must have relevant experience and qualifications to manage the family's wealth effectively and comply with regulatory requirements.Compliance with local regulations and ongoing reporting obligations is crucial for maintaining the operational integrity of a family office in Singapore. Any office must stick to anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, conduct regular audits, and submit annual financial statements to ACRA. Additionally, family offices benefiting from tax incentives beneath the 13X and 13R schemes must meet annual reporting requirements to MAS, demonstrating continued compliance with the scheme's conditions.

Given the complexity of setting up and managing a household office, engaging professional advisors is crucial. Legal advisors can benefit structuring any office and ensuring compliance with regulatory requirements, while tax advisors can optimize the family's tax position and navigate the application process for tax incentives. Investment advisors can help develop and execute the family's investment strategy, aligning making use of their financial goals and risk tolerance. These professionals provide invaluable support, ensuring the household office operates efficiently and effectively.Establishing a family office in Singapore offers numerous benefits, from tax incentives to access to a very skilled workforce. However, it needs careful planning and adherence to regulatory and operational requirements. By understanding the legal framework, establishing the correct structure, and engaging experienced professionals, families can successfully establish a household office in Singapore, ensuring the effective management of their wealth and securing their financial legacy for future generations.