Singapore wealth management – Singapore is a well-known global wealth hub and many high net worth individuals have flocked to Singapore to manage their wealth. This has resulted in an increase in the number of single family offices being setup in Singapore and VCC funds being setup for personal investment and corporate investment purposes. In this article, we will look at why Singapore has attracted wealth from China and India and some highlight some legal considerations that are important for family office and VCC fund setup.
1. Singapore Wealth Management – the influx of high net worth individuals (HNWIs) to Singapore
Singapore wealth management – In the Straits Times in Singapore on 14 September 2024, it was reported that according to the Henley & Partners 2024 World’s Wealthiest Cities Report, Singapore’s appeal to high-net-worth individuals is undeniable:
- 3,400 HNWIs relocated to Singapore in 2023
- Now home to 244,800 millionaires, 336 centi-millionaires, and 30 billionaires
- The number of single-family offices surged from 400 in 2020 to 1,400 by end-2023
Some factors that have drawn such families to Singapore, include the political stability in Singapore, tax incentives, economic opportunities in South East Asia and the strong rule of law in Singapore.
Many family offices and fund managers managing VCC funds are involved in the business of wealth management from Singapore.
2. Singapore Wealth Management – Surge in Family Offices in Singapore
Many families have made money in China and India and come to Singapore to set up a family office to manage the family wealth from Singapore. This is reflected in the growth of family offices in Singapore from 400 in 2020 to 1,400 by 2023.
Most business families setup a family office in Singapore for the tax benefits, the strong Singapore legal regulatory framework, legacy planning and philanthropy.
3. Singapore Wealth Management – Importance of VCC Funds in Wealth Management
Some families instead of single family offices, will use the variable capital company fund as an alternative structure to hold their family wealth/assets. Most fund managers that manage VCC Funds, will apply for a tax incentive of 0% for such funds under Section 13O and Section 13U of the Income Tax Act of Singapore.
The second benefit of a VCC Fund is that the shareholder’s identity is secret (save for disclosure to government authorities in Singapore for anti-money laundering).
Another benefit of a VCC fund is that capital can be returned easily to shareholders and such VCC Fund is not bound by the common law capital rules under general company law in Singapore.
4. Singapore Wealth Management – Why Singapore is the top Choice for wealth from China and India
Singapore’s policy of second language mother tongue has trained a generation of bilingual Singaporeans who can service such clients as they come to Singapore. Given Singapore’s multi-racial makeup, many Chinese and Indian families are quite at ease when they come to Singapore to stay or for holiday.
Singapore in the region enjoys a stable and strong currency and is a strong financial hub in South East Asia. As a result, many families come to Singapore to manage their investments to India and China as it enjoys good investing infrastructure as many of the global financial institutions and professional advisers (who have experience in cross border investing) are based in Singapore.
5. Singapore Wealth Management – Legal and Financial Services for Wealth Management
Many families and high net worth individual’s value Singapore for its security and rule of law and it would be even more important to seek legal counsel when structuring and setting up family offices and VCC funds.
For a family office, the law firm will need to check to see whether the single family office can rely on the class exemption under the Securities and Futures Act to avoid having to apply for a fund management licence.
For a VCC fund, the law firm will need to draft the fund documents which will determine the scope of investment for this fund. Clients should study the fees, risks arising from such an investment and also the purpose of the fund. VCC funds have been used to set up private equity funds to invest globally.
6. Conclusion
Singapore continues to attract the ultra-wealthy from China and India (new wealth). We foresee that an increasing number of second generation families will set up family offices in Singapore and grow and manage their global wealth from Singapore.
Singapore is the Asian HQ for many multi-national companies so as a result as the wealth and operating companies under the family offices start to globalise, Singapore will become a natural global operating HQ to manage such operating companies under the family offices.
If you or your clients are considering VCC Funds, Family Offices, or other Private Wealth solutions, please contact us to see how our Partner from a leading law firm in Singapore can assist.
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We work with a large well known Singapore law firm. If you need to engage a Singapore lawyer to advise you on your legal matters, please click here to schedule a complimentary meeting with our lawyers.
我们与新加坡一家大型知名律师事务所合作。如果您需要聘请新加坡律师为您提供建议，请填Google表格安排与我们律师的免费会面。
http://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.
http://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法和商法教育网站，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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为什么新加坡财富管理吸引全球最富有的人：家族办公室和VCC基金
引言
新加坡财富管理——新加坡是全球著名的财富中心，许多高净值人士纷纷涌入新加坡管理他们的财富。这导致新加坡的单一家族办公室数量增加，以及个人投资和企业投资目的的VCC基金的设立。在本文中，我们将探讨为什么新加坡吸引了来自中国和印度的财富，并重点介绍设立家族办公室和VCC基金时的一些重要法律考虑。
1. 新加坡财富管理——高净值人士 (HNWIs) 涌入新加坡
根据2024年9月14日《海峡时报》报道，Henley & Partners 2024年全球最富有城市报告显示，新加坡对高净值人士的吸引力不可否认：
- 2023年，3,400名高净值人士迁往新加坡
- 新加坡现有244,800名百万富翁、336名亿万富翁（财富至少达1亿美元），以及30位十亿富翁
- 单一家族办公室数量从2020年的400家增加到2023年底的1,400家
吸引这些家族来到新加坡的因素包括新加坡的政治稳定、税收优惠、东南亚的经济机会以及新加坡强大的法治。许多家族办公室和管理VCC基金的基金经理在新加坡从事财富管理业务。
2. 新加坡财富管理——家族办公室数量激增
许多在中国和印度积累财富的家族选择在新加坡设立家族办公室，以便从新加坡管理他们的家族财富。这反映在家族办公室数量从2020年的400家增长到2023年的1,400家。
大多数商业家族在新加坡设立家族办公室是为了享受税收优惠、新加坡强大的法律监管框架、遗产规划和慈善事业。
3. 新加坡财富管理——VCC基金在财富管理中的重要性
一些家族选择使用可变资本公司 (VCC) 基金作为替代结构来持有家族财富或资产。大多数管理VCC基金的基金经理会根据新加坡《所得税法》第13O条和第13U条申请0%的税收优惠。
VCC基金的第二个好处是股东身份保密（仅向新加坡政府当局披露以遵守反洗钱规定）。
另一个好处是VCC基金可以轻松向股东返还资本，并且此类基金不受新加坡公司法普通资本规则的约束。
4. 新加坡财富管理——为何新加坡是中国和印度财富的首选
新加坡的双语政策培养了一代能够用母语服务客户的双语新加坡人。鉴于新加坡的多种族构成，许多中国和印度家族在新加坡生活或度假时感到非常自在。
在本地区，新加坡拥有稳定和强势的货币，并且是东南亚的金融中心。因此，许多家族来到新加坡管理对印度和中国的投资，因为新加坡拥有良好的投资基础设施，并且许多全球金融机构和具有跨境投资经验的专业顾问都设在这里。
5. 新加坡财富管理——财富管理的法律和金融服务
许多家族和高净值人士重视新加坡的安全性和法治，因此在设立家族办公室和VCC基金时寻求法律建议尤为重要。
对于家族办公室，律师事务所需要检查单一家族办公室是否可以依靠《证券与期货法》下的类别豁免，以避免申请基金管理牌照。
对于VCC基金，律师事务所需要起草基金文件，这将决定基金的投资范围。客户应仔细研究费用、此类投资带来的风险以及基金的目的。VCC基金已经被用于设立私人股权基金进行全球投资。
6. 结论
新加坡继续吸引来自中国和印度的新财富。我们预计，越来越多的第二代家族将在新加坡设立家族办公室，并从新加坡管理他们的全球财富。
新加坡是许多跨国公司的亚洲总部，因此，随着家族办公室下的财富和运营公司开始全球化，新加坡将成为管理这些运营公司的自然全球运营总部。
如果您或您的客户正在考虑设立VCC基金、家族办公室或其他私人财富解决方案，请联系我们，看看我们新加坡领先律师事务所的合伙人如何为您提供帮助。
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We work with a large well known Singapore law firm. If you need to engage a Singapore lawyer to advise you on your legal matters, please click here to schedule a complimentary meeting with our lawyers.
我们与新加坡一家大型知名律师事务所合作。如果您需要聘请新加坡律师为您提供建议，请填Google表格安排与我们律师的免费会面。
http://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.
http://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法和商法教育网站，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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