What is a family office in Singapore?
A plain-English explainer of what a family office is, SFO vs MFO, the 13O / 13U tax schemes, the VCC vehicle, and what it actually costs to set one up.
- TL;DR — short answer
- A family office is an entity that provides investment management, governance, tax structuring, and family services to wealthy families. Singapore has roughly 700+ active family offices as of 2024. The two main forms are Single Family Offices (one family, US$50M+ typical, S$1-3M/year run cost) and Multi Family Offices (50-80 SG firms, multiple families, 0.5-1.5% AUM fees). Most apply for Section 13O or 13U tax exemption on the underlying fund vehicle, commonly structured as a VCC.
Definition
A family office is a private entity dedicated to managing the financial and personal affairs of a wealthy family. The core mandate combines investment management, governance, tax structuring, and often philanthropy and next-generation planning. Family offices are private — they typically do not advertise, do not serve walk-in clients, and are not retail-regulated. Singapore became a leading family-office jurisdiction in the 2020s on the back of MAS's Section 13O and 13U schemes and the introduction of the VCC framework.
SFO vs MFO
Single Family Office (SFO) — one family, dedicated team, full control. Economic threshold US$50M+. Typically exempt from MAS licensing under the related-corporations rule (the SFO management entity serves only related family vehicles).
Multi Family Office (MFO) — shared infrastructure across multiple unrelated families, S$10M-200M+ per family. Requires MAS Capital Markets Services Licence (typically Fund Management Company). Fees 0.5-1.5% of AUM. See SFO vs MFO decision guide.
The Singapore tax schemes — 13O and 13U
Two flavors of Section 13 of the Income Tax Act grant tax exemption on specified investment income for resident family-office structures:
- Section 13O (formerly 13R): S$20M+ AUM, 2 investment professionals, S$200k annual SG business spend, 10% local-investment requirement.
- Section 13U (formerly 13X): S$50M+ AUM, 3 investment professionals (one non-family), S$500k–1M annual SG business spend.
- Section 13D: for offshore-domiciled (Cayman/BVI) fund vehicles managed from Singapore. Less common for net-new SFO setups but standard for legacy offshore structures.
The VCC vehicle
The Variable Capital Company (VCC) is Singapore's purpose-built fund vehicle introduced in 2020. It supports both standalone funds and umbrella structures with multiple sub-funds (statutorily ring-fenced). The VCC has become the default vehicle for new Singapore-resident family offices applying for 13O / 13U.
Cost and timeline
A credible SG single-family office costs S$150,000–500,000 one-off (legal, tax, VCC incorporation, MAS application, employment passes, office, IT) and S$1–3M per year ongoing. Timeline runs 6–12 months end-to-end. Full breakdown at setup cost & timeline.
Who advises on the setup?
Typical SG family-office setup involves three advisor categories: law firms (Drew & Napier, Allen & Gledhill, WongPartnership, Rajah & Tann private-client teams), Big-4 tax practices (KPMG, PwC, EY, Deloitte private client), and trust companies (Bank of Singapore Trustees, UBS Trustees, Trident, etc.). See Top SG family-office advisors.
Where to go next
Planning a Singapore family office?
We can introduce you to MAS-registered family-office service providers and Singapore tax/legal partners covering 13D / 13O / 13U structures. Typical client portfolio S$20M+.