Wealthy individuals and families are increasingly looking to establish family offices in Singapore. Family offices provide customized wealth management, asset management, tax planning, and legacy services for ultra-high net worth clients. Setting up a family office in Singapore can be complex, but family office agencies help streamline the process. This article will explore Singapore’s family office agencies, the services they offer, and how they simplify the application process.
Singapore – Destination for Asia Family Office
Singapore’s reputation as a financial hub and politically stable country has made it an attractive base for family offices. The Economic Development Board actively promotes Singapore as a preferred destination for family offices in Asia. They cite the country’s sound regulatory framework, connections to global markets, high quality of life and talented workforce. To further attract family offices, Singapore offers tax exemptions and other incentives. However, regulatory requirements to set up a family office in Singapore are extensive.
What is a Singapore Family Office Agency?
A family office agency helps clients successfully obtain the required licenses, tax exemptions and visas. The most common family office structures in Singapore are the Single Family Office (SFO) and Multi-Family Office (MFO). Agencies guide clients through choosing the appropriate structure based on the number of families served and services offered.
Services Offered By Family Office Agencies
The first service family office agencies provide is advising on the application for Capital Markets Services (CMS) licenses from the Monetary Authority of Singapore (MAS). There are different CMS license types depending on the investment activities the family office plans to engage in. The agency helps determine the scope of services and corresponding licenses needed.
Assistance With Applications and Approvals
Next, agencies assist with applying for tax exemptions and visas that are crucial for operating a Singapore family office. This includes getting approvals for the Global Investor Program (GIP) scheme which grants tax exemptions for foreign-sourced income. Family office staff working in Singapore also need appropriate visas such as an EntrePass or Employment Pass. The agency handles all required submissions and follow ups with authorities.
An important criterion for family offices is demonstrating sufficient assets under management, usually at least US$200 million. The agency helps consolidate financial records and documentation to prove assets meet the regulatory threshold. This verification of funds is critical in getting family office applications approved.
Ongoing Support and Compliance
The agency remains involved after the family office is operational, providing ongoing compliance support. This includes keeping the MAS updated with any changes to business scope, license requirements or corporate structure. Periodic license renewals and responses to regulatory queries are handled by the agency as well.
Benefits of Using a Family Office Agency
Overall, partnering with a family office agency in Singapore offers several benefits:
– Expert guidance on licensing and structuring based on the family’s needs.
– Streamlined application process with higher chances of approval.
– Assistance with visa and tax exemption applications.
– Ongoing support even after the family office is established.
– Regulatory compliance taken care of by the agency.
– Confidentiality and customized services.
While costs are higher when outsourcing to an agency, clients gain access to specialized expertise that maximizes the chances of successfully establishing their Singapore family office. For wealthy families new to Singapore, the agency acts as an invaluable guide helping them navigate regulatory and immigration requirements. Family office agencies allow clients to focus on their core business of managing the family’s wealth and legacy.
With the number of family offices in Singapore projected to keep increasing, agencies will continue to play an important role. Their regulatory knowledge, application support and compliance services effectively simplify the process for global families looking to establish a presence in Singapore. For seamless entry into Singapore’s flourishing wealth management environment, leveraging an experienced family office agency is the most prudent decision.