Dubai vs Singapore: Which is more advantageous to set up a micro-family office?

In the context of the accelerated restructuring of the global wealth management landscape, Dubai and Singapore, with their unique policy advantages and ecosystems, have become popular choices for high-net-worth families to set up micro-homes. However, there are significant differences in the establishment of thresholds, tax planning, asset protection and operational ecology between the two places, which need to be comprehensively assessed in the light of family strategic objectives.

1) Establishment of thresholds

dubai:

low cost and efficient setup: Family offices in Dubai are set up at a relatively low cost, covering the full cost of corporate service consultancy fees and registration fees. Its establishment process is efficient, with approval times typically no more than four weeks, much faster than other major wealth management centers.

Flexible structure: Dubai offers a diverse legal system, including civil law, offshore and free trade zone systems, allowing family offices to choose between regulatory or non-regulatory environments based on specific business needs and wealth management strategies.

Singapore:

high thresholds and strict regulation: Singapore's family offices have high thresholds, especially the 13O and 13U plans, which require initial asset sizes of S $10 million and S $50 million respectively, and grow to S $20 million and S $50 million within two years. In addition, local investment requirements, operating costs and staffing requirements need to be met.

Cost of professional services: Singapore has a world-class financial and legal environment, but this also means that the cost of professional services is relatively high. Family offices need to hire professional financial advisers, legal advisers, etc. to ensure compliance.

2. Tax planning and compliance costs

dubai:

zero Tax Paradise: Dubai does not levy personal income tax, capital gains tax and inheritance tax, providing a significant tax advantage for family offices. This policy makes Dubai an ideal location for the establishment and operation of global family offices, contributing to the growth and inheritance of family wealth.

Compliance requirements: With the strengthening of anti-money laundering and anti-regulations globally, Dubai is also actively responding to international rules, such as the implementation of economic substance laws and information transparency requirements. Family offices need to ensure compliance to take advantage of tax benefits.

Singapore:

tax benefits: Singapore's tax rate is relatively low, with a corporate income tax rate of 17% and a maximum personal income tax of only 22%. In addition, eligible family offices can enjoy MAS special tax exemption and license exemption.

Compliance costs: Singapore's compliance requirements are strict, with family offices meeting local investment requirements, submitting annual reports and bank information filings. However, as the Singapore government continues to simplify the application process for tax incentive schemes, compliance costs have been reduced.

3, Asset Protection and Privacy Security

dubai:

legal Protection: Dubai's legal system provides solid protection for family offices, using a legal structure that blends international standards with local traditions. The legal framework of DIFC is influenced by English law and provides international legal safeguards to ensure the security of family asset management and estate planning.

Privacy protection: Dubai's family office architecture is flexible, allowing families to operate in a non-regulated or regulated environment, with the degree of privacy protection selected according to specific needs.

Singapore:

asset protection: Singapore is well-known for its trust establishment and management, providing a wide range of services, from trust management to wealth inheritance, to meet the diverse needs of families. Family offices can achieve asset isolation and cross-generational inheritance through a trust structure.

Privacy protection: Family offices in Singapore are required to disclose shareholder and equity holder information to MAS, but are not required to disclose it to the public. However, as a member of the CRS (Common Reporting Standards), Singapore is required to exchange tax information on a regular basis, which poses a certain challenge for families seeking absolute privacy.

4. Market depth and operational ecology

dubai:

emerging growth pole: Dubai, as a new pole of global wealth, is attracting more and more high net worth families. Its geographical location is superior, connecting Europe, Africa, India, Central Asia and Russia, providing a broad market access for family offices.

Industry support: The Dubai government has continued to implement reforms to relax foreign equity restrictions and simplify the company registration and business licensing process. In addition, Dubai also focuses on supporting emerging industries such as financial technology, green energy, and cultural tourism to provide more investment opportunities for family offices.

Singapore:

financial hub: Singapore is one of Asia's financial centers, with world-class financial institutions and financial services. Its financial ecosystem is mature, providing professional financial services and consulting to family offices to support global asset allocation.

International talent: Singapore brings together a large pool of international financial talent to provide professional support to family offices. In addition, Singapore's education system is known for its high-quality bilingual education, which provides high-quality educational resources for family offices to train future successors.

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