February 8, 2023

 

It’s no secret that South East Asia is a great area to find new business and investment opportunities, and Singapore remains one of the best places to do so. This is because, over the course of many decades, the government of Singapore has been proactive and intentional in its attempts to incorporate strong and appealing corporate laws in order to establish a better atmosphere for conducting business.

Singapore has attracted a large number of affluent individuals from all over the world because of its closeness to private and investment banks, both local and international (HNWIs). This is in part because to the enticing tax incentives provided by the government of Singapore for family offices to set up shop there.

The phrase “family office” raises certain questions

Truth be told, the concept of a “family office” defies a simple definition. The idea may be better grasped if seen via the lens of its operation. On the other hand, “private wealth management advisory firms that handle ultra-high-net-worth individuals (HNWI),” as experts put it, is a more generic term for home offices. The Tax Incentives for Family Offices in Singapore can be quite useful here.

The two main categories of family offices in Singapore are the Single Family Office (SFO) and the Multi-Family Office (MFO). This piece will solely focus on SFOs, or businesses that cater only to single families. The activities of these SFOs are subject to oversight and regulation by the Monetary Authority of Singapore (MAS) and the Economic Development Board (EDB). In Singapore, there are around 200 family offices (SFOs) that provide assistance to High-Net-Worth families in the management of their assets. The members of the family often take on management roles in these firms.

Functions Carried Out in a Private Office

Services provided by a Single Family Office may comprise any combination of the following.

  • Management of a variety of investments, such as stocks and bonds, private companies, real estate, and cash.
  • Some examples of administrative services include account consolidation, asset custody and aggregation, asset management, cash flow management, concierge services, and payroll and cost monitoring.
  • The three primary components of tax services are tax preparation, tax compliance, and tax planning.
  • Providing legal counsel and structure, handling banking investments, negotiating M&A agreements, and establishing trusts and other fiduciary structures are all examples of the services provided by lawyers.
  • Two components of legacy and wealth transfer planning are the education of the next generation and the creation of a family constitution.
  • Philanthropy include activities such as awarding funds, evaluating applications, and overseeing projects.

So why should you set up shop in Singapore with your family?

Financial asset management and investment on behalf of an individual or family’s or group’s high net worth is the primary emphasis of a family office, a subset of the private equity industry. The fund is unique because its managers may focus on the needs of a single family over the long term, rather than trying to meet the short-term needs of a wide range of investors. With Premium Company Strike Off @ $798 Nett you can expect the right solutions here.

Most family offices are established in countries with stable financial systems and advanced legal frameworks for investment management firms. This means they have access to reliable guidelines for managing business operations and cost-effective organisational frameworks and procedures.

Conclusion

A family company established in Singapore might benefit from the city’s many advantages. That’s because many of the area’s wealthy families are looking to diversify their investments with something promising higher returns. Also, the country’s facilities and infrastructure are among the best in the world, making it easy for foreign entrepreneurs to set up shop there.