Category: Insights

With the rise in wealth generation among Asian families over recent decades, Asian families are increasingly taking a more structured approach towards the consolidation, protection, and management of their family wealth. This has increased the demand for the structures for family offices, such as Single Family Offices (SFOs), Multi- Family Offices (MFOs), Managed Accounts, and Private Trusts, etc.

Singapore has distinguished itself as a prominent global financial services centre through its reputation, strategic location, stable government, robust tax and regulatory environment, and exceptionally efficient yet cost-effective legal and financial ecosystem. High Net Worth Individuals (HNIs), especially from the India and ASEAN regions, prefer Singapore as the jurisdiction for setting up their family offices for various reasons.

Dhruva Advisors Singapore assists Family Offices in achieving the commercial objectives in tax in an efficient as well as a compliant manner. The ‘Family Offices in Singapore’ document provides a concise synopsis on the various factors that play an important part in identifying a suitable structure for family offices.

The Singapore Transfer Pricing (TP) system has its roots in the year 2006, with the introduction of the first set of TP guidelines. An evolutionary process has followed since then, and one could say that the system has come a long way in aligning itself with the Organization of Economic Co-operation and Development’s (OECD) Base Erosion and Profit-Shifting (BEPS) recommendations, especially in relation to the application of the arm’s length principle (as covered in Actions 8-10) and the maintenance of TP Documentation (as covered in Action 13).

The manufacturing sector has emerged as one of the sectors in India with high growth. The ambitious “Make in India” program launched by the Hon’ble Prime Minister, Shri Narendra Modi, has played a pivotal role in this regard and has significantly helped not only in placing India on the world map as a manufacturing hub but also in providing global recognition to India’s growth story.

According to the United Nations Conference on Trade and Development (“UNCTAD”), India ranked among the top 10 recipients of Foreign Direct Investment (“FDI”) in South Asia in 2019, attracting US$ 49 billion – a 16% increase from the previous year.

Cumulative FDI in India’s manufacturing sector reaching US$ 88.45 billion during April 2000 to March 2020 is a manifestation of the increasing attractiveness of India as destination for foreign investments. Furthermore, with its increasing liberalisation and business friendly environment, India has jumped 79 positions to rank 63rd in the ‘Ease of Doing Business index’ as per the World Bank’s Ease of Doing Business Ranking, 2020. In accordance with the latest data released by the Government, the FDI inflows have gone up by almost 15% during the first half of the current year with Singapore topping the list. In terms of numbers, the data shows that despite the pandemic, FDI inflows in India have topped US$ 30 billion during April-September compared to US$ 26 billion in the corresponding period of the last year.

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The gradual shift in the world’s economic gravity to the eastern hemisphere has been well leveraged by Singapore, with its strategic location and growing appeal as an international hub for wealth management and financial services. Singapore has topped the world ranking in terms of ease of doing business for close to a decade. Many global businesses benefit from locating their head quarter operations in Singapore.

Dhruva’s ‘Doing Business in Singapore’ publication provides a concise synopsis on the critical aspects of doing business in Singapore with highlights on taxation, audit & accountancy as well as other related business matters.

Located in the heart of Asia, Singapore has emerged as a leading wealth management hub due to its favourable business environment and stable tax policy. It serves as one of the most attractive locations for fund managers as well as investors, including sovereign wealth funds, pension funds and family offices. Moreover, its friendly yet robust tax and regulatory environment holds sway over the financial sector.

Our publication of ‘Fund Management in Singapore: Tax and regulatory landscape’ summarises various tax incentives for fund managed by Singapore-based fund managers, MAS licensing requirements and other related aspects.