A family office can be broadly defined as an arrangement to manage the financial and other affairs of a high net worth family. It is not a new concept. The early precursor of a family office would be a family constitution and family council and these had been known to have existed since the 17th Century in Japan.

With Asia experiencing a rapid creation of wealth and rising affluence, family offices are becoming increasingly popular. However, every family office is unlike any other and the saying in the industry is: “If you have seen one family office, you have seen one family office.” There are also numerous family offices which, being connected to banks (as shareholders), are not independent. That makes selecting a family office extremely important.

The location of your family office is also vital. Singapore has become a popular choice, as it is a well-regulated international financial center and wealth management hub located in the heart of Asia. Furthermore, offshore income is, by and large, not taxed and onshore income is often lowly taxed due to Singapore’s territorial tax system. There is also no capital gains tax nor inheritance tax.

Family offices administered in Singapore can also take advantage of Singapore’s extensive network of comprehensive double tax treaties or agreements as well as potential tax exemption under various government schemes. Ultimately you get to decide exactly how the family office will serve you and your family. For some individuals, setting up a private trust company could provide the ideal solution in terms of confidentiality, flexibility and efficiency.