Family Office Services

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As Asia develops economically, Asian entrepreneurs have grown from wealth accumulation to family succession planning. With the region's maturing wealth, we sit on the cusp of an inter-generational wealth transfer in the coming 10 to 20 years. The growth in HNW families has driven the rise and demand of family offices in Asia.

Singapore has been well established as one of the leading private banking and wealth management centres globally and in Asia. Singapore’s comprehensive financial regulations and laws, favourable tax incentives, along with its political and economic stability make the island nation a very attractive jurisdiction for all types of organisations, ranging from multinational companies to family offices.

According to the Monetary Authority of Singapore (MAS), the number of family offices in Singapore rose five-fold between 2017 and 2019. Total number of family offices in Singapore has doubled to 400 in 2020. In FY2020/2021 MAS Report, AUM has reached US$3.48 trillion.

What is a Family Office?

A key function of the typical family office is the management of the assets of one or more HNW families.

Family office through modern corporate management structures, provides HNW families with services such as wealth and succession planning, global investments, asset allocation, tax planning, immigration planning and concierge services range from routine matters of family administration through to the management of luxury assets and properties, effectively maintaining alignment and cohesiveness within the family, ensuring continuity during wealth succession. 

A single family office (SFO) is one that provides services to the members of the same family. The family’s trusted advisors such as bankers, asset managers, lawyers and tax advisors may be hired to assist SFO to manage the assets. Activities undertaken may include investments management, philanthropy, wealth and succession planning, family governance, family administration and tax reporting.

SFO Licensing and Tax Incentive Schemes in Singapore

The SFO structures in Singapore are typically designed to be exempted from regulation under MAS. The suite of fund tax incentive schemes (under Section 13R, 13X of the Income Tax Act) provide an exemption from Singapore tax on income and gains made in relation to most types of financial assets (except income or gains from Singapore real estate). 

The combination of an exemption from regulation and Singapore's fund tax incentives mean that a Singapore SFO structure can be highly tax-efficient with a relatively low regulatory burden. Where a Singapore company is used to hold accumulated wealth of a HNW family, this tax efficiency can be further enhanced by the ability to claim benefits under Singapore's extensive network of double taxation agreements (DTA).

Our Services

Capitale understands that amidst ever-increasing volatility in the global economy, family offices demand bespoke solutions from fund managers. The ultra-wealthy are greatly concerned not just about navigating the uncertainty ahead but also the management of succession and inter-generational transfer of wealth.

Our aim is always to achieve complete alignment of interest with family office clients and provide a one-stop solution in setting up a family office in Singapore. We offer objective financial advice from our deep experience and expertise in investing. Furthermore, we seek to capitalise on our strength in deal flow originations to provide opportunity for families to invest in co-investment deals.

We welcome existing family offices and new ones wishing to set up here to get in touch with us for an exploratory meeting.

See also the post on Variable Capital Company (VCC)



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