How to Set Up a Family Office: The 7-Step Process We Use

Before step one: know why the office exists

Every failed family office we have been asked to repair skipped the same step: nobody wrote down what the office was for. 'Managing the family's wealth' is not a mandate — it is a slogan. A real mandate says which services are in scope (investments, tax, estates, philanthropy, concierge), who the office serves, and what decisions it may take without the family.

Write the mandate first. Every later decision — jurisdiction, structure, hires — is a function of it.

The seven steps

This is the sequence we run with families, and the realistic timing for each stage:

• 1. Define the mandate (weeks 1–2): services in scope, family members served, decision rights, and success measures.
• 2. Confirm the economics (weeks 2–3): model running costs against assets; below ~$50M–$100M, pivot to a multi-family office.
• 3. Select the jurisdiction (weeks 3–5): DIFC, Switzerland, Singapore, London or the US — driven by residency, tax, regulation and where the family actually lives.
• 4. Design the structure (weeks 4–8): holding entities, foundation or trust layer, and the operating company that employs staff.
• 5. Licensing or exemption (weeks 6–12): most single family offices serving one family are exempt; multi-family activity triggers DFSA / FINMA / MAS licensing.
• 6. Team and systems (weeks 8–20): the first three hires are usually a head/CIO, a controller, and an operations lead — plus custody, reporting and security stack.
• 7. Governance go-live (weeks 12–24): investment policy statement signed, family charter adopted, committees seated, first reporting cycle delivered.

The three mistakes that cost the most

First: choosing the jurisdiction for tax alone. A 0% headline rate is worthless if the family's actual life — schools, residency, banking — is eleven hours away. Structure follows life, not the reverse.

Second: hiring the investment team before governance exists. A CIO without an investment policy statement is an unguided missile with a Bloomberg terminal.

Third: building for the founder, not the family. If the structure cannot survive the founder's incapacity — signatures, successors, deadlock rules — it is not a family office, it is a personal office with witnesses.

What it costs to get to day one

Setup costs vary by jurisdiction: roughly $45k–$80k year-one in the DIFC, CHF 60k–150k in Switzerland, S$80k–200k in Singapore — before staff. From there, running costs start around $1M a year for a lean dedicated office. Full breakdown in our family office cost guide.

Frequently asked questions

How long does it take to set up a family office?

Typically 2–6 months end-to-end: faster in the DIFC under the Family Arrangements Regulations (8–12 weeks is common), longer where licensing applies — a Singapore MFO with a CMS licence can take 6–9 months.

Do I need a licence to run my own family office?

Usually not: a genuine single family office serving one family is exempt or outside the regulatory perimeter in the DIFC, Switzerland, Singapore and most major centres. Serving other families changes that immediately.

What should the first three hires be?

A head of office (often doubling as CIO), a financial controller, and an operations/administration lead. Legal, tax and specialist investment expertise are usually better outsourced in year one.

Which jurisdiction is best for a new family office?

There is no universal answer: DIFC leads on tax and speed, Switzerland on discretion and heritage, Singapore on Asian access and incentives, London on legal depth. The right answer follows the family's residency, asset locations and succession plan — we compare them in our jurisdiction guides.

Sources

• Deloitte Private — The art of forming your family office
• PwC — Building your future-ready family office
• DIFC Family Arrangements Regulations

Related

• Single Family Office Setup (service)
• How Much Does a Family Office Cost?
• Family Office Structure: Roles & Governance