In recent years, Singapore has become very popular among high-net-worth individuals.
Rich people from all over the world have established their own family offices in Singapore.
For example, Ray Dalio, the founder of the world's largest hedge fund, James Dyson, the founder of Dyson, and Mukesh Ambani, the rich Indian man whose worth has surpassed Jack Ma three times.
What are the uses of a Singapore family office? Why are the rich so keen on setting up family offices in Singapore? Let’s take a look today.
1. Detailed explanation of Singapore family office project
1. What is a Singapore family office?
The American Family Office Association once defined a family office as "an institution that provides a full range of wealth management and family services for super-rich families." This kind of institution can meet the family's expectations, ensure the long-term development of assets, and enable assets to be smoothly passed on across generations and maintain and increase their value.
It can be seen that the role of the Singapore family office can be summarized as follows:
① Provide comprehensive wealth management for individuals or families
The family office adopts a modern enterprise management system and can provide high-net-worth families with overseas investment, asset allocation , tax planning and other services, and develop more complete wealth management plans.
② Allow assets to maintain and increase their value
Singapore’s series of preferential tax policies, such as exemption from inheritance tax and exemption from global double taxation , these favorable policies can ensure that assets maintain their value and do not shrink; through management and operation on the basis of value preservation, rapid wealth appreciation can be achieved.
③ Satisfy cross-generational inheritance
Setting up a family office in Singapore can achieve risk isolation and intergenerational inheritance of family wealth through systematic long-term planning and comprehensive use of various financial tools and legal means.
④ Help individuals or families obtain overseas status
In addition to the above three points, high-net-worth groups can also help individuals and family members obtain overseas status by setting up family offices.
2. Singapore family office types
① Single family office (SFO)
refers to a family office founded by a single family. It is a private company that is managed by its own family.
assets are put into family funds. The main applicant can choose the fund investment by himself or based on the advice of a financial planner.
The operating expenses of a single-family office are borne by one family. The cost is relatively high, but privacy is more guaranteed.
In addition, single family offices do not need to register a fund management company (RFMC) and a licensed fund management company (LFMC) fund license.
② Multi-family office (MFO)
refers to a family office jointly established by multiple families. It can be divided into three types:
The first type is a single family office that is transformed from other families;
The second type is a private bank established for large customers;
The third type is founded by professionals.
A multi-family office in Singapore requires a registered fund management company (RFMC) and a licensed fund management company (LFMC) fund license.
3. The structure of a Singapore family office
① Fund company
Fund companies can hold investment assets in the name of the family, such as financial assets, corporate equity , real estate, etc.
Under the framework of 13O and 13U, income generated from assets can be permanently tax-free, such as overseas real estate investment, traditional financial products , securities derivatives and other investment income.
② Family office
Family office mainly provides fund management services to fund companies. The main applicant and his spouse can apply for Employment Pass (EP) through the family office.
2. Why is Singapore worthy of being chosen by high-net-worth individuals?
1. Global tax haven
Singapore’s tax policies are highly preferential and it is a tax haven in Asia and even the world.
2. Transparent legal mechanism
Singapore’s legal policies are relatively complete, which is conducive to the implementation of family offices.
3. Stable economic environment
Singapore’s geographical location is very advantageous. It is the “easiest place to do business” in the world and its economic environment is relatively stable.
4. High privacy and security
Important business information, such as personal and financial information, enjoys extremely high security in Singapore.
