Family office in Singapore – How to Set up One?

Family office in Singapore – How to Set up One?

在新加坡建立家族办公室:综合路线图

Family office in Singapore : Singapore, celebrated for its strategic positioning, thriving financial ecosystem, and business-friendly climate, is increasingly becoming a favoured destination for setting up family offices. Family offices, entrusted with managing the financial affairs and investments of high-net-worth individuals or families, play a pivotal role in wealth preservation and growth. In this guide, we will navigate the intricate path of establishing a family office in Singapore, shedding light on the steps and critical considerations involved, including a special focus on Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance.

在新加坡设立家族办公室:新加坡以其战略定位、繁荣的金融生态系统和友好的营商环境而闻名,正日益成为设立家族办公室的首选目的地。家族办公室负责管理高净值个人或家族的财务和投资,在财富保值和增长方面发挥着关键作用。在本指南中,我们将介绍在新加坡建立家族办公室的复杂路径,阐明所涉及的步骤和关键考虑因素,包括特别关注反洗钱 (AML) 和了解你的客户 (KYC) 合规性。

Pixabay at Pexels

Family office in Singapore- Step 1: Clarify Your Objectives: Prior to immersing yourself in the setup process, it is imperative to articulate the objectives and aspirations of your family office. Consider factors such as wealth preservation, investment strategies, succession planning, and the spectrum of services you intend to offer to your family.  Some family offices are intended to invest the excess cash of the family, others are set out up to manage the family’s main operating companies and some setup to plan for succession and legacy planning for the family.  Sharing the key planning requirements with your lawyer will help in the design of the correct structure for your family office.

第 1 步:明确您的目标:在投入设置过程之前,必须明确阐明家族办公室的目标和愿望。考虑财富保值、投资策略、继任计划以及您打算为家人提供的服务范围等因素。一些家族办公室旨在投资家族的多余现金,另一些家族办公室的目的是管理家族的主要运营公司,还有一些家族办公室的目的是为家族进行继承和遗产规划。与您的律师分享关键规划要求将有助于为您的家族办公室设计正确的结构。

 

Pavel Danilyuk at Pexels

 

Family office in Singapore – Step 2: Legal Structure and Registration: In Singapore, there are usually two Singapore companies to be set up for this.  The first company will be the exempt fund manager and the second company will be the fund entity.

第2步:法律结构和注册:在新加坡,通常需要为此设立两家新加坡公司。第一家公司将是豁免基金管理人,第二家公司将是基金实体。

Family office in Singapore – Step 3: Regulatory Compliance, Including AML and KYC: Understanding the regulatory framework for family offices in Singapore is of paramount importance. Although family offices generally do not necessitate a license from the Monetary Authority of Singapore (MAS) if they refrain from third-party fund management, stringent adherence to AML and KYC regulations is mandatory. Implement robust AML and KYC protocols to validate client identities, evaluate potential risks, and deter money laundering and illicit activities.

第 3 步:监管合规,包括 AML 和 KYC:了解新加坡家族办公室的监管框架至关重要。尽管家族办公室如果不进行第三方基金管理,通常不需要获得新加坡金融管理局 (MAS) 的许可,但必须严格遵守 AML 和 KYC 法规。实施强大的 AML 和 KYC 协议来验证客户身份、评估潜在风险并阻止洗钱和非法活动。

 

In light of the billion-dollar money laundering case as described in our other article here, the MAS has announced enhanced regulation of family offices, including the requirement for every family office in Singapore to open a bank account with at least one Singapore based financial institution (so that the Singapore financial institution can check the source of funds and source of wealth of the business family).  There are now enhanced reporting requirements for every family office and fund entity set up in Singapore.

 

鉴于我们在另一篇文章中描述的数十亿美元的洗钱案件,金管局宣布加强对家族办公室的监管,包括要求新加坡的每个家族办公室至少在一家新加坡金融机构开设银行账户(以便新加坡金融机构可以查询企业家族的资金来源和财富来源)。现在,对在新加坡设立的每个家族办公室和基金实体都提出了更高的报告要求.

Family office in Singapore- Step 4: Choose an Optimal Location: Selecting a strategic location for your family office in Singapore is critical. Factors such as accessibility, proximity to financial institutions, and the availability of a skilled talent pool should guide your decision.

第四步:选择最佳地点:为您的家族办公室在新加坡选择一个战略地点至关重要。交通便利性、与金融机构的距离以及熟练人才库的可用性等因素应该指导您的决定。

 

 

Pixabay at Pexels

 

Family office in Singapore – Step 5: Banking and Financial Services: Forge alliances with reputable financial institutions in Singapore to facilitate seamless management of investments, cash flows, and financial transactions. Verify that your chosen banks are aligned with rigorous AML and KYC standards.

第 5 步:银行和金融服务:与新加坡信誉良好的金融机构建立联盟,以促进投资、现金流和金融交易的无缝管理。验证您选择的银行是否符合严格的 AML 和 KYC 标准。

Family office in Singapore – Step 6: Talent Acquisition: Assemble a team of seasoned professionals boasting expertise in finance, investment, legal matters, and taxation. The success of your family office hinges significantly on the caliber of your team.  Based on the latest S13O and S13U tax incentive requirements for the fund entity, the fund needs to hire one or more external investment professionals (outside the family).

第六步:人才引进:组建一支经验丰富的专业团队,在金融、投资、法律事务和税务方面拥有专业知识。家族办公室的成功很大程度上取决于团队的能力。根据最新的S13O和S13U对基金实体的税收优惠要求,基金需要聘请一名或多名外部投资专业人员(家族以外)。

Family office in Singapore – Step 7: Investment Strategy: Devise a well-defined investment strategy harmonizing with your overarching objectives. Determine whether you will oversee investments internally or engage external fund managers.

第 7 步:投资策略:制定与您的总体目标相协调的明确投资策略。确定您是在内部监督投资还是聘请外部基金经理。

Family office in Singapore – Step 8: Tax Planning: Collaborate with tax experts to craft a tax-efficient framework for your family office. Singapore offers a plethora of tax incentives and exemptions suitable for family offices.  The exempt fund manager pays tax while the fund entity pays no tax for the duration of the tax incentive period.  Section 13O and Section 13U tax incentives under the Income Tax Act 1947 are applicable.

第 8 步:税务规划:与税务专家合作,为您的家族办公室制定节税框架。新加坡提供大量适合家族办公室的税收优惠和免税政策。在税收优惠期内,免税基金管理人纳税,而基金实体不纳税。 1947 年所得税法第 13O 条和第 13U 条税收优惠适用。

Key Learning Point: Tax planning for global families is more complex, if you are from a country like China, Indonesia, USA or Australia, you need to engage legal and tax advisers with expertise in cross border restructuring.  Whilst the fund entity in Singapore is tax free, shareholders in high tax, global tax countries will be subject to tax in their capacity as shareholders if the profits from the fund entity are distributed back to them as dividends.  A good family office structure should aim to deal with such issues.

学习要点:全球家庭的税务规划更为复杂,如果您来自中国、印度尼西亚、美国或澳大利亚等国家,您需要聘请具有跨境重组专业知识的法律和税务顾问。虽然新加坡的基金实体是免税的,但如果基金实体的利润作为股息分配给全球高税收国家的股东,则他们将作为股东纳税。一个好的家族办公室结构应该致力于解决这些问题。

Step 9: Risk Management and Compliance: Institute rigorous risk management and compliance mechanisms to shield your assets and ensure alignment with regulatory prerequisites, with particular attention to AML and KYC standards.

第 9 步:风险管理和合规性:建立严格的风险管理和合规机制来保护您的资产并确保符合监管先决条件,特别注意 AML 和 KYC 标准。

Step 10: Reporting and Transparency: Establish an effective reporting system to keep family members or stakeholders informed. Transparency and open communication are indispensable while upholding AML and KYC norms.

第 10 步:报告和透明度:建立有效的报告系统,让家庭成员或利益相关者了解情况。在维护 AML 和 KYC 规范的同时,透明度和开放的沟通是必不可少的。

Step 11: Estate and Succession Planning: Formulate a comprehensive estate and succession plan to facilitate seamless wealth transition to future generations while adhering to AML and KYC requirements.

第 11 步:遗产和继承规划:制定全面的遗产和继承计划,以促进财富无缝过渡给后代,同时遵守 AML 和 KYC 要求。

Step 12: Family Governance: Consider the implementation of a robust family governance structure, promoting effective decision-making and conflict resolution within the family circle, all within the confines of AML and KYC compliance.  Families need to plan for legacy planning using a family constitution to regulate how future generations will manage operating companies, whose descendants will manage the family wealth?

第十二步:家族治理:考虑实施稳健的家族治理结构,促进家族圈内的有效决策和冲突解决,所有这些都在遵守 AML 和 KYC 的范围内。家族需要规划遗产规划,用家族宪法来规范子孙后代如何管理运营公司,谁的后代将管理家族财富?

Step 13: Ongoing Management: Running a family office is an enduring journey. Regularly assess your investment strategy, adapt to evolving circumstances, and stay well-versed in pertinent financial and regulatory developments, including updates in AML and KYC regulations.

第13步:持续管理:经营家族办公室是一个持久的旅程。定期评估您的投资策略,适应不断变化的环境,并熟悉相关的金融和监管发展,包括 AML 和 KYC 法规的更新。

Conclusion: The establishment of a family office in Singapore is an intricate but ultimately gratifying endeavour. It necessitates meticulous planning, a well-articulated vision, and a dedicated team of professionals. By strategically navigating regulatory requirements and diligently adhering to AML and KYC standards, a family office can effectively safeguard and grow wealth for generations to come in Singapore’s thriving financial landscape. It is strongly recommended to consult legal, financial, and tax experts to successfully navigate the complexities inherent in this process.

结论:在新加坡设立家族办公室是一项复杂但最终令人满意的工作。它需要精心的规划、清晰的愿景和敬业的专业团队。通过战略性地满足监管要求并严格遵守 AML 和 KYC 标准,家族办公室可以在新加坡蓬勃发展的金融环境中有效地保护和增加子孙后代的财富。强烈建议咨询法律、财务和税务专家,以成功解决此过程中固有的复杂性。

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If you need Private Wealth Legal Services to set up a Single Family Office in Singapore, do click here to schedule a complimentary meeting with our Private Client Legal partner who can look into your specific requirements.

 

如果您需要新加坡私人财富法律服务来在新加坡设立单一家族办公室,请点击此处安排与我们的私人客户法律合作伙伴的免费会议,他们可以更深探讨您的具体要求。

 

https://www.SingaporeLegalPractice.com is a corporate law and commercial law educational website headquartered in Singapore which aims to demystify business law and 新加坡商业法 for SME Company Owners, Startup Founders and 新加坡新移民老板。The information provided on this website does not constitute legal advice.  Please obtain specific legal advice from a lawyer before taking any legal action.  Although we try our best to ensure the accuracy of the information on this website, you rely on it at your own risk.  Click here to signup for our newsletter today to be kept updated on the latest legal developments in Singapore.

 

https://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法商法教育网站,旨在为中小企业主、初创企业创始人和新加坡新移民老板揭开商法和新加坡商业法的神秘面纱。本网站提供的信息不构成法​​律建议。在采取任何法律行动之前,请先咨询律师的具体法律建议。尽管我们尽力确保本网站信息的准确性,但您依赖本网站信息的风险由您自行承担。单击此处订阅我们今天的时事通讯,以了解新加坡最新的法律发展。

 

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