How to Set Up a Family Office: Single vs Multi-Family, Structures and Jurisdictions

What a family office is and who sets one up

A family office is a private organisation that manages the investments and wider affairs of one wealthy family (a single family office) or of several (a multi-family office). Its work usually spans investment management, tax and succession planning, risk management, reporting and administration, and the family decides how much of that it keeps in house.

The typical principal is wealthier than many people assume. UBS's 2025 survey of 317 single family offices in more than 30 markets found an average family net worth of USD 2.7 billion, with each office managing an average of USD 1.1 billion. Deloitte's 2024 research puts total family office assets under management at an estimated US$3.1 trillion, rising to US$5.4 trillion by 2030.

The geography is spreading. Of Deloitte's estimated 8,030 single family offices, 3,180 are in North America, 2,290 in Asia Pacific, 2,020 in Europe and 290 in the Middle East. That spread is why cross-border families now compare jurisdictions as carefully as they compare investment managers, and why the regulatory question comes first rather than last.

A family office is not the only answer for substantial wealth. Many families use a private bank, a trust company or independent wealth management advisers without ever creating an office. The office makes sense when the family wants direct control over investment decisions, consolidated reporting across many assets and entities, and staff who work only for them, and when the assets are large enough to absorb the fixed costs discussed below.

Single family office vs multi-family office

A single family office (SFO) serves one family and is usually owned by it; a multi-family office (MFO) serves several unrelated families and is normally a commercial business. The distinction matters because most regulators treat an SFO as managing its own money and an MFO as providing financial services to clients.

The official rules show the pattern clearly. In the United States, the SEC's family office rule excludes an office from the Investment Advisers Act only if it advises only "family clients", is wholly owned by family clients and does not hold itself out to the public as an investment adviser. In the DIFC, a multi-family office providing financial services to several families as a business needs authorisation and a licence from the Dubai Financial Services Authority. In ADGM, an SFO is a controlled licence activity, while an MFO needs a Category 4 licence from the Financial Services Regulatory Authority.

Feature	Single family office	Multi-family office
Who it serves	One family, its entities and key staff	Several unrelated families
Ownership	Usually wholly owned by the family	Usually independently owned, sometimes by a founding family
US position	Can fall outside the Advisers Act under the SEC family office rule	Outside the family office exclusion, so registration or another exemption is needed
DIFC position	Registered as a family office, no DNFBP registration	DFSA authorisation if financial services are provided as a business
ADGM position	Controlled licence activity, USD 10m family net assets	FSRA Category 4 licence, minimum capital rules
Control and privacy	Highest	Shared platform, less bespoke
Cost base	All fixed costs borne by one family	Costs spread across client families

For many families the real choice is sequencing: start with a multi-family office or a private bank, then build a single family office once the assets, complexity and appetite for control justify it.

How much money is needed to set up a family office?

There is no universal legal minimum, but the main financial centres set entry thresholds for their family office regimes, and those thresholds are a practical floor for anyone wanting the local benefits. The table below sets out the official figures.

Jurisdiction	Regime	Entry threshold	Other key conditions
Abu Dhabi (ADGM)	Single family office	USD 10 million of family net assets	No minimum capital; incorporation fee USD 5,600, renewal USD 5,300
Dubai (DIFC)	Family Arrangements Regulations	USD 50 million of family net assets	No DNFBP registration with the DFSA
Singapore	Section 13O / 13OA tax scheme	S$20 million in designated investments	2 investment professionals, at least 1 not a family member
Singapore	Section 13U tax scheme	S$50 million in designated investments	3 investment professionals, at least 1 not a family member
Hong Kong	FIHV tax concession	HK$240 million of specified assets	2 full-time staff and HK$2 million spending in Hong Kong
United States	SEC family office rule	No asset threshold	Family clients only, family owned and controlled
United Kingdom	No bespoke regime	No asset threshold	General FSMA perimeter applies

The legal threshold is not the economic one. UBS found that the "pure" cost of running a family office averaged 41.1 basis points of assets under management in 2024. On those averages, a family with USD 100 million would be spending about USD 411,000 a year before any investment management fees, which is why surveys of established offices are dominated by families worth billions rather than tens of millions.

How to set up a family office: the eight steps

Setting up a family office follows the same sequence in most jurisdictions: define the purpose, choose the model and location, build the legal structure, deal with regulation and tax, then staff, govern and operate it. The eight steps below are the practical order.

1. Define the mandate. Write down what the office will do: investment management only, or also tax compliance, philanthropy, property, concierge and next-generation education. The mandate drives staffing, cost and regulatory status.
2. Choose single or multi-family. Decide whether the office will serve one family, which keeps most regimes light, or several, which usually means a licence.
3. Map the family's residence and tax position. Where the principals live, and where they may move, often matters more than the office's base. A family member planning to leave the UK, for example, should understand how UK tax non-residence works before any assets are moved.
4. Select the jurisdiction. Compare thresholds, tax incentives, staffing rules, privacy and travel practicality using the official regimes summarised in this guide.
5. Design the structure. Agree the office company, the investment vehicle or vehicles, and any holding company, trust or foundation above them.
6. Clear regulation and tax. Confirm whether the office needs a licence, registration or exemption, and apply for any tax incentive. Specialist tax advisers should model the position in every country where the family or its assets sit.
7. Hire and govern. Recruit the chief investment officer and operations staff, and adopt an investment policy, a family governance document and clear decision rights.
8. Operate and review. Open banking and custody accounts, build reporting, and diarise the annual tests (asset levels, staffing, spending) that most incentive schemes impose.

Stage	Key output	Typical lead
Mandate and model	Written purpose, SFO or MFO decision	Family principals
Jurisdiction and tax	Location shortlist, tax memo	Tax and private client advisers
Structure	Entity chart, constitutional documents	Corporate and trust lawyers
Regulatory	Licence, registration or exemption analysis; incentive application	Regulatory counsel
People and governance	Hires, investment policy, family charter	Family and office head
Operations	Bank accounts, custody, reporting, compliance calendar	Chief operating officer

Family office structures: the building blocks

Most family offices are not one entity but a small group: an operating company that employs the staff, one or more investment vehicles that hold the assets, and often a trust, foundation or holding company at the top that holds the family's ownership.

• The office company. A private company that employs staff and provides services to the family. Hong Kong's concession, for instance, requires an eligible single family office to be a private company at least 95% beneficially owned by family members and normally managed or controlled in Hong Kong.
• The investment vehicle. The fund or holding company that owns the portfolio and is managed by the office. Singapore's 13O and 13U schemes and Hong Kong's concession both attach their tax relief to this vehicle, not to the office company.
• The ownership layer. A trust, foundation or holding company that separates ownership from management and supports succession. ADGM, for example, lists foundations with a USD 1,000 incorporation fee and initial assets as low as USD 100.

A family office and a trust are not alternatives: the trust or foundation decides who owns the wealth and who benefits, while the office manages it day to day. That is why family and private client lawyers and asset protection specialists are usually involved in the design long before investment staff are hired. The structure also needs to match where family members are tax resident; an elegant offshore chart can fail if a principal's home country taxes the underlying income anyway.

Singapore: the 13O and 13U schemes

Singapore's appeal rests on tax exemptions under sections 13O, 13OA and 13U of the Income Tax Act 1947, which exempt qualifying fund vehicles managed by Singapore-based fund managers, including family offices, if they meet the scheme conditions throughout the incentive period.

The two main thresholds differ in size and staffing. The 13O and 13OA schemes require S$20 million of assets under management in designated investments and two qualifying investment professionals, at least one of whom is not a family member. The 13U scheme requires S$50 million and three investment professionals, again with at least one non-family member. Each professional must work as a portfolio manager, research analyst or trader, earn more than S$3,500 a month, spend more than half their time on the qualifying activity and be tax resident in Singapore.

There is also a tiered local spending test. Funds below S$250 million must spend at least S$200,000 locally; those from S$250 million to below S$2 billion must reach S$500,000, of which at least S$300,000 is local business spending; and those at S$2 billion or more must reach S$1 million, with at least S$500,000 of local business spending. Eligible donations and grants to blended finance instruments count double towards the balance.

A capital deployment requirement then obliges the fund to invest the lower of 10% of its designated investments or S$10 million in qualifying assets, such as equities on approved exchanges or non-listed Singapore companies with a substantive local presence, and the fund must keep a private banking account with a MAS-licensed institution. MAS updated the scheme page on 22 September 2026 and points families to its circular as the primary reference. For local structuring, advisers in Singapore and private funds lawyers handle the vehicle and the application.

Dubai and Abu Dhabi: DIFC and ADGM family office rules

The UAE offers two financial free zones with distinct family office regimes: the DIFC in Dubai, whose regime sets a USD 50 million net asset test, and ADGM in Abu Dhabi, whose single family office route starts at USD 10 million.

The DIFC's Family Arrangements Regulations, introduced on 31 January 2023, replaced the old single family office regulations. The regime removed the requirement for a family office to register as a DNFBP with the DFSA, allows an office to serve more than one family in certain circumstances, and created a family business register under UAE Decree-Law No. 37 of 2022. The consultation paper behind it set a USD 50,000,000 net asset requirement for a family wanting to operate a family office in the DIFC, replacing an investable-asset test it called impractical, and introduced a private register for shareholders and officers of family entities. By April 2024 the DIFC reported more than 120 of the world's wealthiest families and individuals, over 440 registered foundations and an 81% rise in single family offices during 2023.

ADGM's route is cheaper to enter. A single family office needs minimum family net assets of USD 10 million, does not need a financial services permission, pays a USD 5,600 incorporation fee and a USD 5,300 annual renewal, has no minimum capital and can register as a restricted scope company with no audit requirement. A multi-family office needs an FSRA Category 4 licence, pays USD 16,800 to incorporate and USD 16,500 to renew, and must hold capital of at least USD 10,000 or an expenditure-based amount covering 6/52nds of annual expenditure.

The wider UAE corporate and licensing picture is covered in our guide to opening a business in Dubai, and both free zones have a deep bench of advisers in Dubai and advisers in Abu Dhabi.

Hong Kong: the family investment holding vehicle concession

Hong Kong's offer is a 0% profits tax rate on qualifying transactions of a family-owned investment holding vehicle (FIHV) managed by an eligible single family office, applying to years of assessment beginning on or after 1 April 2022.

The Inland Revenue Department sets out the conditions. The specified assets managed by the single family office for the family's vehicles must total at least HK$240 million, and each vehicle must meet a substantial activities test: at least two full-time qualified employees in Hong Kong and at least HK$2 million of operating expenditure there. The office itself must be at least 95% owned by the family, provide services to the family for a taxable fee, and earn at least 75% of its assessable profits from services to specified family members under a safe harbour rule. The amending ordinance came into operation on 19 May 2023. Advisers in Hong Kong can test whether a family's existing holding structure fits the definitions.

United States: the SEC family office rule

In the United States a single family office can usually avoid registering as an investment adviser by fitting within the SEC's family office rule, Rule 202(a)(11)(G)-1, which the Commission adopted on 22 June 2011 after the Dodd-Frank Act removed the old private adviser exemption.

The rule has three conditions: the office gives securities advice only to "family clients", it is wholly owned by family clients and exclusively controlled by family members or family entities, and it does not hold itself out to the public as an investment adviser. Family members are the lineal descendants of a common ancestor no more than 10 generations removed from the youngest generation, together with their spouses or spousal equivalents. Certain key employees, such as executive officers, directors and investment staff with at least 12 months' relevant experience, can also be family clients. An office that fails the conditions must register or rely on another exemption. Because family clients are defined around one common ancestor, an office serving unrelated families falls outside the exclusion, which is why US advisers treat multi-family offices as regulated businesses.

United Kingdom: no bespoke regime, so check the perimeter

The UK has no family office statute or licence. Instead, a UK family office must ask the general question every financial business asks: is it carrying on a regulated activity, such as managing or advising on investments, by way of business without authorisation?

The stakes are high because breaching the general prohibition in the Financial Services and Markets Act 2000 is a crime. Under section 23, a person who contravenes it is liable on conviction on indictment to imprisonment for up to two years, a fine, or both, subject to a defence of having taken all reasonable precautions and exercised all due diligence. In practice, a single family office managing only its owners' wealth will often argue that it is not acting by way of business, while an office that starts serving friends, co-investors or a second family moves quickly towards needing authorisation. The same perimeter analysis applies in other sectors, as our explainer on when firms need FCA authorisation shows. UK advisers can document the analysis, which is worth having before any external party is admitted.

Family office costs, staffing and governance

Family office costs are dominated by people. In UBS's 2025 survey, the pure cost of running the office made up 56% of total costs in 2024, and staff accounted for two-thirds (66%) of those pure costs, with the average office employing 12 people.

Scale helps. Offices with more than USD 1 billion averaged 35.1 basis points in 2024, against 41.1 basis points overall. For 2025, UBS's respondents projected 41.8 basis points for offices managing USD 100 million to USD 250 million, 42.4 for USD 251 million to USD 1 billion, and 35.5 above that. Offices that also oversee an operating business projected 44.9 basis points against 33.0 for those that do not, and offices serving the second to seventh generations projected 44.0 against 36.8 for first-generation offices.

Cost line (UBS 2025 projection)	Share of overall operating costs
Pure cost of running the family office	57%
Asset management costs	21%
Banking-related service fees	10%
External structures	8%
Other	4%

Governance is the other half of the cost. Every office needs an investment policy, a clear line between family decision-makers and staff, and a family charter or constitution covering how the next generation joins, how disputes are settled and how distributions are made. Without those documents a family office simply moves family conflict into a more expensive building.

Common mistakes when setting up a family office

The most common mistakes are structural rather than investment errors, and most can be avoided by planning the order of steps properly.

• Building below the economic threshold. At around 41 basis points of pure cost, a small office can consume a meaningful share of returns. A multi-family office may be the better first step.
• Drifting into a regulated business. Taking in a friend's money or a second family can turn an exempt single family office into one that needs a licence in the US, the UK, the DIFC or ADGM.
• Ignoring the principals' personal tax. An offshore office does not change where family members are taxed. UK families, for example, need to understand the inheritance tax tail after leaving the UK.
• Missing annual conditions. Singapore's spending and capital deployment tests and Hong Kong's staffing and expenditure tests apply every year, not only at approval.
• Skipping family governance. Divorce, death and disagreement test every structure; our guide to international divorce shows how quickly assets held across borders can be drawn into proceedings.

Where advisers take over

Setting up a family office is a multidisciplinary project: tax advisers model the position, private client and corporate lawyers draft the structure, regulatory counsel confirms licensing, and the family then recruits its own investment team. Families typically appoint a lead adviser to co-ordinate the others and keep the steps in order. Corporate INTL's directory of wealth management specialists and the practice and country pages linked throughout this guide are a starting point for building that team in each jurisdiction under consideration.

Frequently asked questions

How much money is needed to set up a family office?

There is no universal minimum. Official thresholds include USD 10 million of family net assets for an ADGM single family office, USD 50 million in the DIFC, S$20 million or S$50 million of investments for Singapore's 13O and 13U schemes, and HK$240 million for Hong Kong's tax concession. Running costs average about 41 basis points a year.

What is the difference between a single family office and a multi-family office?

A single family office serves one family and is usually owned by it. A multi-family office serves several unrelated families as a business. Regulators generally treat the first as managing its own wealth and the second as providing financial services, so multi-family offices typically need a licence or registration.

What is the difference between 13O and 13U in Singapore?

Under MAS's conditions, the 13O and 13OA schemes require S$20 million in designated investments and two qualifying investment professionals. The 13U scheme requires S$50 million and three professionals. In both, at least one professional must not be a family member, and local spending and capital deployment tests apply.

Are family offices exempt from the US Investment Advisers Act?

A single family office can be excluded under the SEC's family office rule if it advises only family clients, is wholly owned and controlled by the family, and does not hold itself out to the public as an investment adviser. Offices that fail these conditions must register or rely on another exemption.

Does a UK family office need FCA authorisation?

There is no specific UK family office regime. The question is whether the office carries on a regulated activity by way of business. Breaching the general prohibition is a criminal offence carrying up to two years' imprisonment on indictment, so offices should document their analysis, particularly before taking in outside money.

What are the DIFC family office requirements?

Under the Family Arrangements Regulations introduced in January 2023, a family wanting a DIFC family office must meet a USD 50 million net asset requirement. The office no longer registers as a DNFBP with the DFSA, but a multi-family office providing financial services as a business needs DFSA authorisation.

What are the typical costs of running a family office?

UBS's 2025 survey put the average pure cost at 41.1 basis points of assets under management in 2024, falling to 35.1 for offices with more than USD 1 billion. Staff account for about two-thirds of those pure costs, and the average office employs 12 people.

Is a family office better than a trust?

They do different jobs. A trust or foundation decides who owns the wealth and who benefits from it, while a family office manages the wealth day to day. Many families use both, with the trust or foundation owning the investment vehicles that the family office manages.

How many family offices are there worldwide?

Deloitte estimates there are about 8,030 single family offices worldwide, up from 6,130 in 2019, and projects 10,720 by 2030. North America has the most, at an estimated 3,180, followed by Asia Pacific with 2,290 and Europe with 2,020.

Sources

1. Monetary Authority of Singapore: Fund Tax Incentive Schemes for Family Offices (updated 22 September 2026)
2. Hong Kong Inland Revenue Department: Profits tax concessions for family-owned investment holding vehicles
3. US Securities and Exchange Commission: Family Offices, small entity compliance guide to Rule 202(a)(11)(G)-1
4. Abu Dhabi Global Market: Family offices
5. DIFC Authority: Consultation Paper No. 3 of 2022, Family Arrangements Regulations (December 2022)
6. DIFC: DIFC announces enactment of new DIFC Family Arrangements Regulations (February 2023)
7. Government of Dubai Media Office: DIFC emerges as premier global hub for family businesses (29 April 2024)
8. legislation.gov.uk: Financial Services and Markets Act 2000, section 23
9. Deloitte Private: Defining the family office landscape (2024)
10. UBS: Global Family Office Report 2025 (21 May 2025)

About this article

This guide was researched and written by The Corporate INTL Newsroom, which covers cross-border legal, regulatory and business developments for lawyers, professional advisers and financiers in over 150 jurisdictions. It has been checked against the official family office regimes published by the Monetary Authority of Singapore, ADGM, the DIFC, Hong Kong's Inland Revenue Department and the US Securities and Exchange Commission, the text of the Financial Services and Markets Act 2000, and the Deloitte and UBS family office surveys. Thresholds, fees and conditions change, so confirm the current position with the relevant authority before acting. This article is general information, not legal, tax or investment advice; for advice on a specific matter, consult a qualified adviser. Last reviewed 29 October 2026. For more analysis like this, visit the Corporate INTL newsroom or subscribe to Corporate INTL.