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+. Exempt from MAS licensing if it meets the single-family-office conditions (managing money only for one family, family-funded charities and key employees) and files a notice and annual return with MAS.
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
Section 13 schemes of the Income Tax Act exempt specified investment income of approved funds, including funds run by single family offices. The conditions below are for new single-family-office awards approved from 1 August 2026:
- Section 13O (formerly 13R): a Singapore-resident fund company (13OA: a Singapore-registered limited partnership). S$20 million of AUM at application and at each financial year-end; 2 investment professionals (may apply with 1; at least 1 non-family member by the end of the first financial year).
- Section 13U (formerly 13X): an approved fund vehicle in any jurisdiction. S$50 million of AUM at application and at each financial year-end; 3 investment professionals (may apply with 2; at least 1 non-family member by the end of the first financial year).
- Both 13O and 13U: minimum local spending tiered by year-end AUM — S$200,000 a year below S$250 million of AUM, S$500,000 from S$250 million and S$1 million from S$2 billion; capital deployment of the lower of 10% of AUM or S$10 million in qualifying investments. Both schemes expire on 31 December 2029.
- Section 13D: for offshore-domiciled (Cayman/BVI) fund vehicles managed from Singapore. Self-assessed, with no MAS approval; from YA 2028 the Singapore fund manager must employ at least 1 qualifying investment professional. Less common for net-new SFO setups but standard for legacy offshore structures.
Per MAS Circular FDD Cir 05/2026 (31 July 2026), for new single-family-office awards from 1 August 2026. Verified 14 September 2026.
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
What is a family office in Singapore — FAQs
What is a family office?
A family office is an entity that provides investment management, governance, tax structuring, philanthropy administration, and related services to one or more wealthy families. In Singapore the term covers Single Family Offices (one family, US$50M+ typical) and Multi Family Offices (multiple families, US$10M-200M+ per family).
How big do you need to be?
A Single Family Office (SFO) economically makes sense from US$50M+ — below that, the fixed cost of running a dedicated team (S$1-3M/year) is too high. Multi Family Offices (MFOs) serve families from US$10M-200M+ by sharing infrastructure across families. Private banking covers the band below US$10M for most clients.
What are the Singapore tax schemes for family offices?
Section 13O (formerly 13R) covers approved funds that are Singapore-resident companies (Section 13OA: Singapore-registered limited partnerships); Section 13U (formerly 13X) covers approved fund vehicles in any jurisdiction. For new single-family-office awards from 1 August 2026: 13O needs S$20 million of AUM and 2 investment professionals; 13U needs S$50 million and 3; in both, at least 1 professional must be a non-family member by the end of the first financial year. Minimum local spending is tiered by AUM: S$200,000 a year below S$250 million of AUM, S$500,000 from S$250 million and S$1 million from S$2 billion. Both grant tax exemption on specified investment income and expire on 31 December 2029. See /13o-vs-13u-singapore.
What does a family office actually do?
Six core functions: (1) investment management — discretionary mandates, alternatives access, direct deals; (2) consolidated reporting across custodians; (3) tax structuring including 13O/13U administration and cross-border planning; (4) family governance — investment policy, family constitution, next-generation programmes; (5) philanthropy; (6) sometimes lifestyle / concierge functions. Some are deeper than others.
How long does it take to set up an SFO in Singapore?
6-12 months from initial scoping to operational launch. Six phases: scoping (M1-2), legal/tax/MAS filings (M3-5), employment passes (M3-7), banking onboarding (M5-8), office build-out + hires arriving (M6-10), MAS approval + asset transfer + go-live (M9-12). See /singapore-family-office-setup-cost-timeline.
What does it cost to set up?
One-off setup S$150,000-500,000 (legal, tax, VCC, MAS application, employment passes, office, IT). Ongoing operating cost S$1-3M per year (investment-professional salaries, fund admin, audit, custody, advisory). Total all-in over the first two years runs S$2.5-5M for a well-resourced SFO.
Do family offices need a MAS licence?
Qualifying SFOs do not — they are exempt from the Capital Markets Services Licence under the single-family-office class exemption in force since 15 June 2026, and file a notice with MAS within 14 days of commencing business plus an annual return. MFOs do need a CMSL (typically Fund Management Company licence) because they serve unrelated clients. Both can apply for 13O / 13U tax exemption on the underlying fund vehicle.
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+.