Factsheet: 13X Enhanced Tier Scheme (Family Office)

13X

What is a Family Office?

The term ‘family office’ does not have a fixed definition. 

A family office typically refers to an entity which:- 

  1. manages assets for or on behalf of only 1 family; and

  2. is wholly owned or controlled by members of the same family.

The role of the Family Office is to oversee the day to day administration & management of assets & investments with the goal of preserving wealth and transferring it to the next generation.

Factsheet: 13X Enhanced Tier Scheme (Family Office)

Benefits

Tax Exemption

Under the Tax Incentive Scheme, as long as the prescribed conditions set out are met, the investment fund will be exempted from most forms of Singapore income tax, including the gains or profits realized from the acquisition and the divestment of portfolio investment that might otherwise be taxable as trading income.

Qualifying Criteria

  • Minimum of S$50 million Assets-Under-Management (“AUM”) at the point of application (committed capital concession available for private equity, debt and credit funds). *Offshore assets can be qualified as part of AUM requirement.

  • Must incur at least S$200,000 per annum in local business spending (i.e. operating costs which includes salary and rental).

  • Must employ at least 3 investment advisors (i.e the applicant and his family)

Assets Under Management

S$50 million must be comprised of bankable assets with all such assets being held with in an account with a private bank in Singapore.

Such assets much be deposited into the account at the point of application. During the interview with the MAS, applicants must bring along the bank statement of such account as proof of funds deposited.

Singapore Incorporated Company Requirements

All Singapore incorporated company are required to have a minimum of two (2) company directors and one (1) company secretary. It is a requirement under the Singapore law there should be at least one (1) individual director who must be ordinarily resident in Singapore.

Local resident directors are Singapore Citizens, Singapore Permanent Residents, an EntrePass holder or Employment Pass holder issued with such a pass to work in the company concerned and who has a local residential address.

Upon the approval of the 13X application, the applicant shall qualify for an employment pass. Upon the issuance of the employment pass, the applicant shall qualify as a local resident director.

Time

It will take approximately 6-9 months for a 13X Enhanced Tier Scheme Application to be processed.

  • Initial legal advisory including structuring of the Family Office and collation of information (2 months)
  • Preparing the preliminary submission to MAS for an interview date (current waiting time for interview date is 6 months)

The information contained here is only intended to provide general information on the subject covered. Nothing in this publication should be regarded as constituting legal advice concerning any particular business, operational or other situations with which you might be faced. Further, the law may have changed since first publication and the reader is cautioned accordingly. Please seek professional advice before taking any action.

Chris Chua & Associates LLC

Chris Chua & Associates LLC is a limited liability law corporation with unique entity number: 201826324Z and regulated by the Ministry of Law, Singapore, license number: LSRA/LLC/2018/00019. Its registered office and principal place of business is at 138 Robinson Road, #10-04 Oxley Towers, Singapore 068906.

Based in Singapore, we advise both local and international clients who wish to expand and preserve their business interests and wealth. Our Firm has assisted corporations in establishing and structuring new investments and business ventures in different sectors. We think beyond obvious legal issues and come up with pragmatic solutions to challenging commercial problems.

For more information, kindly visit our website www.ccnalaw.com or contact us at +65-62227500.

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