FAMILY OFFICE
A Family Office is an all-round solution for our Ultra High Net Worth clients, which can help them and their families to manage their wealth and legacy planning. At IPCG, we find the best, consolidated solutions for our clients, tailored according to their needs.
As Ultra High Net Worth families accumulate their wealth, it will get increasingly difficult and time consuming for them to balance their capital, needs and responsibilities. This is where Family Offices come in, to help them to manage their family wealth and investments, plan their legacy, and most importantly, manage their businesses amidst a period of technological disruptions. Family Offices help not just the client, but also their family, by considering each member’s desires and perceptions. Setting up a Family Office’s primary interest is to support the Ultra High Net Worth families with a wide range of advisory, incorporating both professional and operational capacity to grow and preserve their wealth for their next generations.
We understand that setting up Family Offices can be tedious with a complex procedure. That is why our team has the avenues to help you set up your Family Office with ease. Besides sharing knowledge and expertise when you need personalized recommendations, we also partner with a number of the best service providers and financial institutions who can offer the most beneficial solutions to your needs. We are Independent Advisors who offer objective and efficient advisory to your best interests.
These are just some of the benefits you stand to gain by setting up a Family Office especially if you are considering setting up a Family Office in Singapore with plans to relocate to Singapore together with your family members:
• You will be eligible for the Singapore Tax Incentive Scheme.
• You may apply for an Employment Pass.
• You may apply for a Long-term Visit Pass for your parents.
• You may apply for a Dependent Pass for your spouse or children (under 21 years of age).
• In the future, you may be eligible for Permanent Resident status or Singapore citizenship.
Overview of Sections 13O and 13U
of Singapore Income Tax Act (SITA)
MAS Approval
Assets Under Management
(AUM)
Family Office
as Fund Manager
(Service entity)
Fund
Expenditure
Section 13O (formerly 13R)
Onshore Fund Tax Incentive Scheme
Section 13U (formerly 13X)
Enhanced Tier Fund Tax Incentive Scheme
Approval required from MAS
Minimum S$20 million in Designated Investments at time of application and throughout incentive period.
Minimum S$50 million in Designated Investments at time of application and throughout incentive period.
Minimum 2 investment professionals (“IPs”), with at least 1 being non-family member, at time of application and throughout incentive period.
Minimum 3 IPs and at least one IP being a non family member, at time of application and throughout the incentive period.
Singapore based
Singapore based where fund entity /
asset-holding entity is Singapore
incorporated
S$200,000 - S$1 million business
spending in a year, subject to tiered business spending framework
S$500,000 - S$1 million business
spending in a year, subject to tiered business spending framework
IP Requirements
• Relevant formal work experience or academic qualifications
• Employed as Portfolio Manager/ Research Analyst/ Trader, earn above S$3,500 per month, spend above 50% of time in qualifying activity
• Must be Singapore tax residents throughout incentive period
Capital Deployment
Requirement (“CDR”)
Invest lower of S$10 million or 10% of AUM in:
• Equities, REITs, Business Trusts, ETFs listed on MAS-approved exchanges
• Qualifying Debt Securities
• Non-listed funds distributed by licensed Financial Institutions (“Fis”) in Singapore
• Investments into non-listed Singapore operating companies
• Climate-related investments
• Blended finance structures with substantial involvement of Fis in Singapore
*certain types of eligible investments will enjoy a multiplier; the amount invested in those categories will be scaled up by a multiplier when computing if CDR is met.
Fund
Administrator
The Fund must have a private banking account with a MAS-licensed FI at point of application and throughout incentive period
*Donations to local charities & grants to blended finance structures with substantial involvement of Singapore Financial Institutions recognized
Private Banking Account Requirement