Family offices are ubiquitous in various countries around the world. As a wealth management and allocation system, its advantages are obvious. With the growth of economic strength in Asia and the continuous enhancement of investment advantages, wealthy families or high-net-worth individuals around the world begin to shift their corporate development to Asia, and family offices and their branches are established. Among Asian countries, Singapore has always been regarded as a bridge for trade between Asia and the world. Therefore, the Singaporean family office has naturally become the most concerned management system for wealth management, allocation and investment.
Bridgewater Fund's Ray Dalio immigrated to Singapore through a family office. Singapore, a hub in Southeast Asia, is now attracting more attention from the wealthy. The well-known Haidilao boss Zhang Yong and his wife, and Dyson founder James Dyson have successively set up family offices in Singapore. Why do so many rich people choose Singapore?
Introduction to Family Office in Singapore
A family office is a consulting company that provides private wealth management consultation. It is usually established by the family itself and is responsible for the daily management and supervision of family assets and various investments. The purpose is to maintain and inherit family wealth.
The structure of a family office in Singapore is that the main applicant sets up two companies in Singapore by oneself or his/her family members, in which one is a fund company and the other is a family office. A family office provides fund management services to fund entities (corporate companies incorporated in Singapore) under the Tax Exemption Scheme (13X/13R) applicable to Singapore funds. The fund manager (main applicant) manages his/her own or his/her family's assets through the family office and obtains an Employment Pass (EP).
Advantages of Family Offices in Singapore
Stable business environment
Singapore's excellent business environment provides high net worth clients with one of the best places for overseas wealth.
Global Asset Allocation
Singapore has a well-developed financial system and no foreign exchange controls. In the 2020 Index of Economic Freedom, Singapore was rated as the freest economy in the world, which makes Singapore the first choice for everyone to realize the globalization of asset allocation and achieve asset value preservation and appreciation.
Optimal tax planning
Fund companies established by family offices are eligible for the Singapore Fund’s Tax Exemption Scheme (13U/13O), and certain investment income is not subject to 17% corporate income tax.
Family wealth inheritance
Through the family office, we can establish a long-term family tradition, realize cross-generation inheritance, and preserve and increase the value of family wealth. Let future generations work in the family office, grasp the concept of wealth management as soon as possible, and make the family assets pass on smoothly.
Overseas identity planning
Applicants who set up a family office can immigrate to Singapore by applying for an Employment Pass (EP) so that family members can directly come to Singapore to live and study, and then convert to Permanent Resident (PR).
The benefits of a family office in Singapore
A family office provides an efficient and transparent structure for the investment and management of family wealth.
A family office is bound by a family charter and investment mandate established by the founding members to ensure a consistent vision and protect the legacy from generation to generation.
Helps to minimize disputes between family members and ensure that the family business continues to prosper.
