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How to set up a family office in Singapore

Contributed by Bestar Services
30 December, 2020


What makes Singapore an ideal location for setting up a family office?

In the past decade, with the tremendous growth in wealth and affluence in the region, the number of super-rich individuals and families has grown exponentially. Asia is one of the fastest-growing populations of high-net-worth individuals ("HNWI"), leading to a high concentration of wealth.

These wealthy people want to preserve, grow and pass on their wealth to future generations, so it's not surprising that they will find a place of choice with attributes that help manage wealth. Singapore is one of the preferred locations as it is a major financial center. In addition to being a stable and well-regulated financial center, it also has wealth-friendly regulations and attractive taxation. Combined with a wealth of talent in private banking, wealth management, law and finance, Singapore has become one of the most exciting regions to set up a family office.

Typical family office structure

The family office is a well-known concept in the West. With the growth of wealth in Asia, family offices have become a popular wealth management solution that can be tailored to meet the needs of high net worth individuals and their families. In fact, it is essentially a firm for the management of funds whose purpose is to oversee the management of assets, maintenance, growth, intergenerational transfer and investments of people with high net worth. In a single Family Office (SFO), the company manages the family's financial and personal affairs and is 100% owned by the same family. The following figure shows the general structure of an SFS:

How to set up a family office in Singapore

Factors to consider when setting up a family office

Every high-net-worth family will have specific needs and goals for establishing a family office. There is no general family office structure. Each family office must be customized according to the requirements of the family and consider various factors, such as:

  • Goal of setting up a family office
  • Types of assets that will be injected into the family office
  • Investment strategy and mandate of family office
  • Regulatory requirements and tax incentives

To promote the asset management industry and encourage the establishment of family offices, Singapore has introduced various tax incentive schemes that apply to family offices and investment funds.

To promote the wealth management industry and facilitate the creation of family offices, Singapore has implemented various tax incentives that apply to family offices and investment funds.

How Bestar can help

As an all-suite corporate business solution provider, we have the expertise to support family offices and help HNWI and their families manage their Singapore-based wealth.

Setup and implementation

We will discuss with you your needs and goals, and then propose the structure that best supports the family office's near-term and future plans. We will explain the requirements and main considerations so that you can make an informed decision when choosing the best structure.

The services we offer are:

  • Proposal for a good family office structure
  • Advice on regulatory requirements
  • Assistance with tax planning, immigration and relocation
  • Establishment of a family office company
  • Assistance in obtaining tax incentives and liaison with the government sectors concerned
  • Analysis of the transfer pricing of administrative services provided by family offices

Ongoing operation

We have a dedicated team, well-equipped, and can provide you with all aspects of support for your family office's daily needs. These include:

  • Bookkeeping
  • Financial statement preparation
  • Internal Audit
  • Company secretary
  • Payroll
  • Immigration
  • Annual tax returns for trusts, funds and family offices
  • Annual tax filing for personal tax returns of family members and family office employees
  • Attending to inquiries from tax authorities and other government agencies
  • Annual tax incentive declaration
  • Assist in handling tax reporting matters related to Common Reporting Standards and FATCA

We provide support to help you evaluate new investment opportunities and the best acquisition structure. We also provide trading advice so that you can understand the different implications and be able to make thoughtful decisions.

Ad hoc advisory

  • Transaction negotiation
  • Financial and tax due diligence
  • Cash flow forecast and projection
  • Valuation
  • Cross-border tax planning
  • Structuring - Location choices and types of investment vehicles
  • Treaty analysis
  • Asset transfer
  • Repatriation and distribution of income / profit
  • Country by country tax analysis

We regularly cooperate with preferred service providers, so if your family office needs services that we do not provide, we will work with our partners so that you can enjoy a comprehensive "one-stop" service.

If you would like to know more, please contact Bestar:

Bestar Singapore http://www.bestarcorporation.com

Bestar Malaysia http://www.bestar-my.com




 


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