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A single family office in Singapore does not need its own MAS licence if it qualifies for the class exemption that took effect on . To claim a fund tax exemption it must also meet the S13O or S13U tests: S$20 million or S$50 million in designated investments, local spending, and a team of investment professionals. Checked against MAS pages.
SingaporeCompanySetupGuide.com is an independent guide. It is not MAS and gives no tax or legal advice. A provider who takes up a request from our form may pay us a referral fee.
What counts as a single family office?
MAS has described a qualifying single family office as one that is wholly owned, directly or indirectly, by members of the same family and that manages money only for that family. That includes family trusts and companies owned by the family. The structure can vary, because MAS calls its framework structure-agnostic. A trust, a foundation or a company can sit on top. The final criteria are in the MAS FAQs on the licensing exemption, so read those before you rely on this summary.
What changed on 15 June?
MAS now offers a straight-through class exemption from licensing for qualifying single family offices. The conditions in the MAS release are:
- Notify MAS of the operation.
- Keep an account with a MAS-licensed bank.
- File an annual return showing total assets under management and the bank name.
Offices already operating have a transition period to . Several family office guides that rank for this keyword still describe older arrangements. If a page does not mention the exemption, treat it with care.
Which tax scheme fits: S13O or S13U?
MAS runs two fund tax schemes for funds managed by single family offices. This table sets out the tests from the MAS page.
| Test | S13O and S13OA | S13U |
|---|---|---|
| Minimum designated investments | S$20 million | S$50 million |
| Qualifying investment professionals | 2 (one not a family member) | 3 (one not a family member) |
| Local spending, AUM under S$250 million | S$200,000 | S$200,000 |
| Local spending, AUM S$250 million to S$2 billion | S$500,000 | S$500,000 |
| Local spending, AUM S$2 billion or more | S$1,000,000 | S$1,000,000 |
| Local investment | Lower of 10% of AUM or S$10 million | Lower of 10% of AUM or S$10 million |
The AUM level must hold at application and at the end of each basis period. If it falls below the line at the end of a basis period, the exemption for that year is lost.
Who counts as an investment professional?
An investment professional is a portfolio manager, research analyst or trader who earns more than S$3,500 a month, spends over half their time on qualifying activities and is a Singapore tax resident. At least one must not be a family member. Plan hiring early, since the schemes are tied to this headcount.
What counts as local spending?
The base is local business spending. The fund may add eligible donations and blended finance grants, which count double. MAS also lists a local investment test: the lower of 10% of AUM or S$10 million must go into approved listed equities, securities sold through MAS-licensed institutions or certain non-listed Singapore companies with a real local presence. Some of these earn a 2x multiplier.
What entities do you set up?
A family office often involves a fund-holding entity and a management entity, plus a bank account with a MAS-licensed institution. That is a common pattern in provider guides, not a rule from MAS, so confirm with your adviser. For a holding structure see Singapore holding company. If the fund will use a variable capital company, read VCC. Corporate income tax and its exemptions for a company are on corporate tax.
What do foreign families need to know?
ACRA requires foreigners to use a corporate service provider to register a company and appoint at least one locally resident director. See register a company as a foreigner. Be careful with a hired director: the person carries legal duties, as the nominee director page explains. Bank onboarding for large accounts is each bank's decision. See business bank account.
What is the order of work?
- Decide who owns what. The exemption turns on the family owning the office, so draw the ownership chart first.
- Choose the entities: a holding or fund vehicle and, if needed, a management company. See Singapore holding company.
- Open the bank account with a MAS-licensed bank. The exemption and the tax schemes both require one.
- Notify MAS under the class exemption.
- If you want a fund tax exemption, plan the investment professionals, the local spending and the local investment test before you apply, since each is measured by basis period.
What does this guide not cover?
MAS pages read here set no application fee for the tax schemes and no processing time, so none is quoted. The MAS FAQ page on the schemes points to a separate document for the licensing exemption detail. Multi-family offices, philanthropy incentives and estate planning are outside this page. Those need a lawyer and a tax adviser who know your family's facts.
Where does a provider fit?
A provider can handle the company filings, the registered office and the secretary. Tax scheme applications and the legal opinion on exemption are for your lawyer and tax adviser. Use the quote form and we pass your request to providers with family office experience.
Sources
- MAS, fund tax schemes for family offices: https://www.mas.gov.sg/schemes-and-initiatives/fund-tax-incentive-scheme-for-family-offices (S13O, S13U, spending, professionals)
- MAS media releases, the release titled Revised Framework for Single Family Offices to take effect in June: https://www.mas.gov.sg/news/media-releases (exemption conditions and transition period)
- MAS, FAQs on the schemes for family offices: https://www.mas.gov.sg/contact-us/faqs/faqs-on-the-schemes-for-family-offices
