Setting Up a Single Family Office Fund In Singapore


BUILDING LEGACIES & GENERATIONAL WEALTH

The Family Fund
VCC Structure

The VCC empowers families in Singapore to establish their own family fund tailored to each family member’s individual needs. These include a customisable personal fund, unique to each member’s ideals and passions with professional investment management and tax-efficiency. Moreover, the VCC is also an enticing option for international families seeking to establish their assets in a secure financial centre like Singapore and gain long-term residency.

Family Fund Overview

Key players in the VCC

① Single Family Office

A wealthy family interested in dividing their assets among individual members may consider utilising the segregated cell structure of the VCC. While small families may not find it immediately necessary, the potential for conflict arises if assets are not appropriately segregated when dealing with multiple sub-units within a family lineage spanning 2-3 generations.

② Singapore Licensed Fund Manager

A Single Family Office can apply for exemption to manage the VCC itself but will be subject to stricter conditions for the 13O/U tax exemptions. Alternatively, it can outsource this role to a Licensed Fund Manager in Singapore for convenience and lower barriers to the 13O/U tax exemption.

③ Fund Service Providers

The service providers that provide the operational services for the fund. These include accounting, auditing, legal, and administrative services.

④ VCC Umbrella Fund

Each family member in the family can have its own fund where each fund can have its own investment adviser and strategy. This allows each member to pursue its own investing passions and ideas. The flexibility in the VCC also allows family members to manage other people’s money (PE/VC fund) if it wishes but would need a licensed fund management entity to do so.

Key Players of the VCC - Directors, Fund Managers, Service Providers and the VCC Fund

Tax Exemption Requirements

For licensed-managed VCCs

13O Resident Tax Exemption

13U Enhanced-Tier Tax Exemption

Tax residency

Fund must be tax resident of Singapore

Fund can be constituted in Singapore or overseas

Fund manager requirements

Requires a Singapore-based CMS licensed fund manager

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals

AUM

No restrictions

Minimum fund size of SGD 50 million

Fund reporting requirement

Min. SGD 200,000 annual expenses

Min. SGD 200,000 annual local business spending

Fund administration requirement

Annual statements to investors. Tax filing to IRAS for non-qualifying investors.

None needed

Fund administration requirement

Requires a Singapore fund administrator

Other reporting requirements

Annual MAS declaration & annual tax returns to IRAS

13O Resident Tax Exemption

Fund must be tax resident of Singapore

Requires a Singapore-based CMS licensed fund manager and fund administrator

No minimum AUM

Min. SGD 200,000 annual expenses

Annual MAS declaration & annual tax returns to IRAS

13U Enhanced-Tier Tax Exemption

Fund can be constituted in Singapore or overseas

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals & a fund administrator

Minimum fund size of SGD 50 million

Min. SGD 200,000 annual local business spending

Annual MAS declaration & annual tax returns to IRAS

Setup Steps & Timeline

Singaporean Efficiency

ProcessEstimated Time
1) Engage a fund manager as the central coordinator for your fund
2) Confirm the fund structure’s term sheet such as the investment period, fund life, management fee, carry, valuation frequency, investment targets and fund size, etc.
3) Select a legal counsel, fund administrator, corporate secretary and auditor
3) Draft legal documents such as company constitution, private placement memorandum, management, subscription and redemption agreements, etc.3-4 weeks
4) Register and Incorporate the VCC with the MAS4-6 weeks
5) Apply for the 13O/U tax exemption4-6 weeks
6) Start onboarding the family investors
7) Create additional sub-funds for different investors and strategies

Benefits of the VCC
For Families

Tailored
Funds

Each family member gets to manage their own assets, exploring their own strategy and passions in investments.

Umbrella
Efficiency

Families can jointly contribute to the costs of a VCC while sharing its tax and other benefits.

Succession
Planning

Having well defined assets segregated to each member early on prevents potential conflicts.

Access
Singapore

International families can use the VCC as a secure vehicle and gain long-term residency in Singapore.

Create Legacies
& Generational Wealth

Get connected with our service partner providers to inquire how you may start your family office fund and access Singapore — the preeminent financial hub of Asia
[email protected]

Start a Family Office Fund

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