A family office is a dedicated organisation that provides a family with integrated investment management, governance, tax, philanthropy and next-generation development. This guide is the China Family Office Limited’s flagship reference; every figure is sourced.
What is a Chinese family office?
For Chinese families, a family office typically emerges when the family business reaches succession and investable assets pass roughly US$100 million. It consolidates affairs previously scattered across private banks, lawyers and tax advisers into one team serving the family alone. A single family office (SFO) serves one family; a multi-family office (MFO) serves several.
Why 2026 is a pivotal year
Three trends converge. First, China’s wealth management market reached RMB 179.33 trillion in 2025 (Sina Finance, 2026) as founder generations enter succession. Second, MOF & STA Announcement No. 15 of 2026 applies a uniform 20% individual income tax to offshore trust arrangements. Third, Hong Kong overtook Switzerland with about US$2.5 trillion of cross-border wealth (BCG, 2026).
Setup process (six steps)
- Define objectives — investment, succession, philanthropy or combined; audit family assets and governance.
- Choose a model — SFO, MFO or virtual family office (outsourced team).
- Choose a jurisdiction — Hong Kong (GBA access, CIES at HK$30m) or Singapore (13O at S$20m); see our comparison guide.
- Build the structure — incorporation and compliance of holding, trust and fund entities.
- Staff the team — CEO/CIO, investments, legal and tax, family relations.
- Install governance — family charter, investment policy statement and regular family meetings.
Jurisdiction snapshot
| Metric | Hong Kong | Singapore |
|---|---|---|
| SFO count | 3,380+ | About 1,400 |
| Tax tools | Offshore fund exemption | 13O/13U |
| Mainland access | Direct | Indirect |
| Reference threshold | CIES HK$30m | 13O S$20m |
Common mistakes
Mistake 1: treating the family office as just an investment desk — governance and next-generation development are equally core. Mistake 2: bigger is better — the global market was US$20.6bn in 2025 and most successful offices stay lean (Research Nester). Mistake 3: setup is the finish line — annual compliance is mandatory, especially after the 2026 offshore trust rules.
How this guide is maintained
The Institute maintains this guide; it was last updated on 25 August 2026. Policy changes (Policy Address, tax announcements) are reflected within two weeks, each with a verification date.
References
Related Guides
Explore how to set up an SFO in Hong Kong and how to write a family charter on the Institute\u2019s site, or see the FAQ.