Updated: Dec 2, 2022
One of the most common questions I get :)
Of course... "it depends" on the details - all advisor will start with that. And it is true, prices can vary widely depending on your specific situation and the providers you work with. I've seen clients who spent over USD300k just to set up a SFO structure while another spent USD30K. So here're some basic numbers, so it's less daunting for those who are considering to set up your very own SFO!
Mid Tier firms average fees*:
Advisory Fees USD30K
Incorporation for (Trust + 2 Pte Ltd) USD20K
License application/exemption USD20K/10K
Other legal documents USD10K
Tax incentive application 13O/U USD15K
Annual reporting and maintenance USD30-50K
*The above is an estimated average based on the fee quotes we have seen, let us know about your experience here!
While the above has not considered the cost of employees, physical office and additional costs for non-regular structures, it should give you a good sense of base cost. Setting up a SFO is a long-term commitment you should consider carefully before starting. Perhaps start asking yourself these questions:
What are my key objectives of setting up an SFO? (Rank them)
Who should it benefit?
What are the Main asset classes you own currently and in foreseeable future?
The list gets longer but knowing the above clearly will help you and your advisor get to a good starting point :)