How to Set up a Singapore Family Office

Singapore has become one of the most attractive jurisdictions for setting up family offices, and a key reason for that is its unmatched suite of fund tax incentives.

With a robust legal infrastructure, political stability, and a proactive regulatory environment, Singapore has emerged as the go-to destination for ultra-high-net-worth individuals seeking to preserve, grow, and transition family wealth.

But building a family office in Singapore is more than finding office space or hiring professionals. One of the most crucial early steps is choosing the right tax exemption scheme, a decision that can significantly impact how your assets grow and how much operational substance your setup requires.

Singapore’s tax regime offers three key incentive programs designed to support fund structures managed from within its borders:

• Section 13D: For offshore funds managed in Singapore
• Section 13O (and 13OA): For resident onshore funds, including companies, VCCs, and limited partnerships
• Section 13U: For large-scale, complex fund structures

This guide will walk you through these incentives, explain how they work, and help you identify the right fit based on your capital, structure, and vision.

Family offices operating in Singapore can enjoy tax exemption on specified income derived from designated investments, provided they meet economic substance requirements. Choosing the right scheme is crucial, not just for tax efficiency but also to ensure long-term compliance with Singapore's evolving financial regulations.

The 3 Incentive Schemes

Section 13D: Offshore Fund Incentive

Best for: Offshore family offices managing global assets through a Singapore-based manager with minimal setup.

Key Features:

• Applies to funds that are not tax resident in Singapore.
• No need to apply to the Monetary Authority of Singapore (MAS).
• From FY ending 2027, must employ at least one investment professional in Singapore.
• Tax exemption applies to designated investments (e.g., listed securities, funds, derivatives).
• No minimum AUM required.
• The 30/50 investor restriction may apply, but exemptions are available under certain trust/unit trust structures.

Use case: A Cayman Islands fund managed by a Singapore exempt fund manager for a single family.

Section 13O: Onshore Fund Incentive

Best for: Singapore-resident family offices with moderate AUM and desire for onshore structuring.

Key Features:

• Applies to Singapore-incorporated entities like private companies, Variable Capital Companies (VCCs), and (as of 2025) Limited Partnerships via 13OA.
• Requires approval from MAS.
• Fund must have at least S$20 million AUM in designated investments.
• Must employ at least 2 investment professionals who are Singapore residents.
• Tiered local business spending requirement from S$200k.
• 30/50 test waived in many cases from YA2025 onwards.

Use case: A Singapore VCC structure managing intergenerational wealth and planning to gradually scale assets.

Section 13U: Enhanced-Tier Incentive

Best for: Larger family offices or complex fund structures needing maximum flexibility.

Key Features:

• Can be applied to any fund structure, including master-feeder SPVs and offshore entities.
• Requires MAS approval.
• Minimum AUM: S$50 million in designated investments.
• Must employ at least 3 investment professionals, including one non-family member.
• Local investment mandate: Must deploy up to 10% of AUM or S$10 million per year into Singapore-based investments.
• Tiered local business spending requirement from S$200k.
• No restrictions on investor count or type.

Use case: A large international family establishing a multifaceted investment platform across asset classes and jurisdictions.

13OA: New Option for Limited Partnerships

Effective 2025, the 13O scheme will expand to include Singapore Limited Partnerships under Section 13OA, offering additional structuring flexibility for PE-style funds or venture investors. The same AUM, substance, and spending rules apply.

Closed-End Fund Pathway

From 2025, both 13O and 13U will allow closed-end funds to benefit from flexible thresholds, particularly for LBS and AUM, making these schemes more accessible for family offices with fixed capital and liquidation timelines.

This helps accommodate long-horizon vehicles such as:

• Private equity-style family funds
• Multi-generational trust wrappers
• Real estate holding companies

How to Choose the Right Scheme

Ask yourself:

1. Where will your fund be domiciled?
   • Offshore → 13D
   • Singapore → 13O / 13OA / 13U
2. What’s your expected AUM?
   • Under S$5m → 13D only
   • S$20–50m → 13O / 13OA
   • Over S$50m → 13U optimal
3. How much local presence can you support?
   • Hiring 1–3 investment professionals?
   • Annual local spending capacity?
4. Need for flexibility?
   • Want to use master-feeder SPVs or VCCs?
   • Need to include offshore family trusts?
5. Compliance appetite:
   • Are you ready for MAS application, ongoing reporting, and substance reviews?

What’s Changing in 2025

The upcoming changes from January 1, 2025, require family offices to:

• Meet higher substance requirements earlier (no more grace periods past FY2027).
• Justify local economic contribution via local investments and business spending.
• Review fund structures for VCC/LP suitability under 13OA.

This reflects Singapore’s move toward aligning with OECD BEPS standards and reinforcing its position as a real economic hub, not just a tax haven.

Final Thought

Singapore remains one of the most competitive jurisdictions for family offices—but only for those who plan ahead. Whether you're starting lean with an offshore entity under 13D, growing a mid-sized Singapore fund under 13O, or launching a full-fledged multi-asset platform under 13U, understanding these frameworks is key.

Make your decision based on structure, scale, and strategic vision, not just tax savings. The MAS increasingly favors setups with real people, real spending, and real investments in Singapore.

If you’re setting up a family office or restructuring your existing fund, don’t go in blind. Start by mapping your entity, scale, and staffing plan against these frameworks. The right structure today prevents tax and compliance headaches tomorrow.