Why Start an Asset and Wealth Management Company in Singapore?

The asset and wealth management industry has been steadily rising over the past years, and there is solid proof. In 2019, the global wealth management market was valued at $486.78 billion, a 6.6% increase from 2015.

Potential wealth management entrepreneurs are always looking for the perfect location for their companies, and Singapore fits the bill. A thriving business hub, Singapore boasts the headquarters of hundreds of multinational companies.

Singapore's world-class infrastructure accompanied by low tax rates and incentives has made it a magnet for foreign investors. Read on to know more about asset and wealth management company incorporation Singapore.

Why Singapore? 

Asset and Wealth Management enthusiasts will benefit from a country with transparent laws, low corporate taxes, excellent infrastructure, and political stability. Singapore has all that and more!

  • The deterioration of bank secrecy laws in Swiss Banks and the wealth surge in Asian countries have led to people swinging towards Asian business hubs like Singapore.

The laws in this country are highly business-friendly. On top of that, it is a great place to live.

  • SMEs employ around two million people in Singapore and account for more than 50% of the country's GDP. Singapore's government has introduced multiple equity-financing schemes, tax incentives, cash grants to assist small and medium-sized enterprises.
  • Accolades and high rankings from World Bank's Doing Business Report, the World Economic Forum's Global Competitiveness Report, and the Global Information Technology proof report that Singapore is a global business hub.
  • In 1994, Singapore's then Prime Minister paved the way for offshore investments into the asset management industry. A new scheme in 1998 allowed external asset overseers to manage up to S$30 billion assets held by the GIC (Singaporean Sovereign Wealth Fund) and MAS (Monetary Authority of Singapore).
  • Since 1994, the government has continuously introduced new schemes. As a result, by the end-2019, Assets under Management (AUM) value in Singapore stood at a whopping S$4 trillion, 76% of which was sourced from foreign countries. During the same year, the number of registered and licensed fund managers had increased to 895.
  • The country believes that double taxation is a hindrance to international trade, which is why it has entered into Avoidance of Double Taxation Agreements (DTAs) with multiple countries.
  • FTAs are lawful international treaties between two or more trading partners to reduce obstructions to trade in goods, services, and investments. Investors looking forward to successful Singapore company registration can primarily benefit from the country's 24 free trade agreements.
  • The country boasts everything an asset and wealth management company fan will need for business registration Singapore. The country has it all, from accredited law firms with multi-jurisdictional practices to a substantial private banking channel.
  • The Economic Development Board of Singapore or EDB offers RHQ (Regional Headquarters) and IHQ (International Headquarters) incentives to relocate their business headquarters to the country.

How to Setup an Asset and Wealth Management Company in Singapore? 

If you are planning on setting up an office for your asset and wealth management company in Singapore, you should familiarize yourself with the following details:

  • Wealth managers must apply for a CMS (Capital Markets Services) License for asset and wealth management. They can also register themselves as a Registered Fund Management Company (FMC).

 There are four types of FMC in Singapore:

  1. Licensed Retail FMCs – These FMCs can serve as types of investors, including Retail
  2. Licensed A/I FMCs – They serve only qualified investors minus restriction on the numbers
  3. Licensed VC FMCs – They oversee venture capital funds advanced to only qualified investors
  4. Registered FMCs – Registered FMCs are companies with assets under management of S$250 million or less and have no more than thirty qualified investors (out of which no more than fifteen may be funds or limited partnership fund systems)

FMCs must comply with all the application and registration requirements, enhanced business conduct, and risk-based capital requirements, among others, for successful business registration Singapore.  

  • MAS (Monetary Authority of Singapore) confers a CMS license upon an FMC based on the following factors:
  1. The applicant's track record, financial soundness, and management expertise
  2. How suitable are the aspirant's shareholders, directors, CEO, professionals and employees?
  3. The applicable fund management expertise of the directors and the professionals
  4. What are the applicant's business plans and foreseeable financial projections?
  5. The aspirant's capacity to meet the minimum financial requirements
  6. The strength of internal obedience

Many business owners or wealth management enthusiasts have managed to reap huge benefits from Singapore's beneficial business schemes. If you want to make full use of the same opportunities, contact us today.

Updated on: 29 Jun 2022

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