Set Up A Family Office
Definition of Family Office
A family office can provide a full range of wealth management and family services to super-affluent families, meeting not only the needs of high value individuals, but enabling the smooth transfer, maintenance and appreciation of their assets across generations.
The primary role of a family office is to keep a close eye on the family balance sheet, establish an independent body, manage the family portfolio on its own, and achieve family succession. A family office can be a regular limited company or a limited company placed in a family trust structure for long-term succession and asset segregation protection.
What is a Family Office
Single Family Office
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A single family office (“SFO”) is an undefined term, but typically refers to an organisation that manages assets and for or on behalf of one family.
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Meaning of members of the same family, i.e. lineal descendants from a single ancestor, including spouses, ex-spouse, adopted children and step children of such descendants.
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Generally, it is exempted from licensing.
Multi Family Office
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A multi family office serves a number of families, acting as wealth advisor and manager to multiple families.
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Is regulated and needs licensing.
Variable Capital Company (“VCC”)
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A variable capital company (“VCC”) is a corporate structure for investment funds. It can be formed as a single standalone fund, or as an umbrella fund with two or more sub-funds, each holding different assets.
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Currently, an SFO cannot manage a VCC.
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The discussion has been ongoing to allow an SFO to manage a VCC.
Advantages of Singapore Family Office
Tax Exemption Policy
In 2020, Singapore deepened the family office system that has existed for many years, expanded the tax exemption and extended the current tax exemption until 2024.
Immigration Programs for High Net Worth Individuals(HNWI)
High Net Worth Individuals can manage their or their family's assets through the Family Financial Management Office to obtain an Employment Pass (EP). High Net Worth Individuals can apply for Singapore Permanent Resident (PR) status after 6 months of holding an EP. Spouses and unmarried children under 21 years old can apply for Dependant's Pass, and parents can apply for Long Term Visit Permit (LTVP). The whole family can move to Singapore quickly.
Overseas Asset Allocation
Professional asset allocation portfolio solutions help clients diversify their investment risks through a combination of trusts, insurance, real estate, funds and other products to achieve the best overseas asset allocation and perfect avoidance of CRS.
