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Family Office Services

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Family Office Services offered by Cheng & Co Trust Int'l Limited

Family Office Services offered by Cheng & Co Trust Int'l Limited

Published in: Economy & Finance, Business

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  • 1. Family Office Services Succession Planning and Wealth Management through Labuan Foundation 
  • 2. Family Office Services What is family business and who requires family office services? 
  • 3. Who requires Family Office services? Businesses involving one or more than one family is known as family business and family businesses typically requires Family Office services for wealth management purposes.
  • 4. Family Office Services What are the typical problems encountered by family businesses? 
  • 5. Typical problems encountered by family businesses…  Conflict of interest among family members  Lack of succession planning  Decrease in leadership drive  Flat growth to the company  Heirship
  • 6. Family Office Services What is the typical structure of family businesses? 
  • 7. Typical structure of family businesses… Founder (1st Generation) Immediate Members (2nd Generation) Extended Family (3rd Generation)
  • 8. Family Office Services What does family office services cover? 
  • 9. Wealth Planning Services Administrative Services Succession Planning Services Asset Management Family Office Services Risk Management Services Charity Services Trust Management Services Tax and Legal Services
  • 10. Family Office Services Where do we start? 
  • 11. Family Office Services First, set-up a Labuan Foundation… 
  • 12. Labuan Foundation Succession Planning Services A Labuan Foundation will be set-up for company and family governance purposes under our Family Office services
  • 13. Labuan Foundation Succession Planning Services Ownership issues will be also be taken care… Business will operate as usual… Family governance in place…
  • 14. Family Office Services Use a Labuan Foundation instead of a Company or a Trust because… 
  • 15. A Labuan Foundation is a combination of Company and a Trust… Foundation is like a hybrid structure of a company and a trust
  • 16. You get the best of both world… A Company has the flexibility to change its structure by passing a board resolution… A Trust provide asset protection by segregate personal asset and business risks... A Labuan Foundation has both the characteristics of a Company and Trust…
  • 17. Family Office Services Setting up a Labuan Foundation… 
  • 18. Labuan Foundation requires the following key personnel…  Founder * Founder can act either as council member or officer  Council Member  Officer * Officer should not be related to council member  Secretary  Beneficiary
  • 19. Family Office Services Optimizing ownership with Labuan Foundation… 
  • 20. Optimization of Ownership…  Wealth creation & protection  Risk diversification  Liquidity management  Leverage
  • 21. Family Office Services Benefits to your business using Labuan Foundation… 
  • 22. Business…  Wealth creation & protection  Enhanced company value protection  Mitigation of intergeneration conflicts  Balance asset & liability management  Additional source of wealth & income
  • 23. Family Office Services Benefits to your family using Labuan Foundation… 
  • 24. Family…  Family culture & values  Family governance  Compensation schemes  Wealth preservation  Succession planning  Risk assessments & profiles  Individual financial & tax planning objectives
  • 25. Sucession Planning Do you have in mind who will be the next key personnel? 
  • 26. Succession Planning: Key values for determination of the next leader… Characteristics (initiative, creative thinking)
  • 27. Succession Planning: Key values for determination of the next leader… Behavior (integrity, commitment)
  • 28. Succession Planning: Key values for determination of the next leader… Competency (knowledge, skills, talents, experience, abilities)
  • 29. Succession Planning: Key values for determination of the next leader… Strategic thinking (Dynamic, tactical, enterprising, entrepreneurial)
  • 30. Succession Planning: Key values for determination of the next leader… Relationship / Network building (Charisma, diplomatic, team player, cooperative)
  • 31. Labuan Foundation Structure of Labuan Foundation (Non-charitable) 
  • 32. Labuan Foundation Manage Transfer of Assets Manage Manage Distribution The structure of a non-charitable private foundation
  • 33. What if the Foundation is established for charitable purposes? If the Foundation solicits funds/donations from the public….three (3) additional personnel shall be required…
  • 34. Labuan Foundation Structure of Labuan Foundation (Charitable) 
  • 35. Charitable Foundation Manage Transfer of Assets Additional Personnel Manage Manage Distribution
  • 36. Labuan Foundation Example of restructuring Labuan Foundation into a family business… 
  • 37. Family business owned by 3 brothers before restructuring… Shareholders 55% Local Company Business Operations 30% 15%
  • 38. Labuan Foundation First step of restructuring… Set-up a separate Labuan Foundation for each family… 
  • 39. Labuan Foundation for Mr A family Manage Transfer of Assets Manage Manage Distribution For each family, set up a private foundation…
  • 40. Labuan Foundation for Mr B family Manage Transfer of Assets Manage Manage Distribution For each family, set up a private foundation…
  • 41. Labuan Foundation for Mr C family Manage Transfer of Assets Manage Manage Distribution For each family, set up a private foundation…
  • 42. Labuan Foundation Then, set-up a main Labuan Foundation for each Family Foundation… 
  • 43. Proposed Structure 55% 30% Controlling Stakes 15%
  • 44. Contact us for more information… 
  • 45. Cheng & Co Trust International Limited Telephone: +603-79848988 | Fax: +603-79844402 Website: www.chengcotrust.com | e-mail: info@chengcotrust.com Kuala Lumpur Office: No 16-G, Jalan 2/114, Kuchai Business Centre, Off Jalan Klang Lama, 58200 Kuala Lumpur Labuan Office: Lot 2(a), Level 4, Wisma Lazenda, Jalan Kemajuan, PO Box 81840, 87000 Labuan FT www.chengcotrust.com 

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