- Single family office
- Owned by the family, works only for it, generally outside SEBI registration
- Multi family office
- Serves many families, usually registered or tied to a registered entity
- Main legal check
- Who owns the assets, who decides and who is paid
- Before signing
- Have the mandate, fee and conflict terms read
On this page
How do they compare?
| Point | Single family office | Multi family office |
|---|---|---|
| Who it serves | One family and its entities | Several families |
| Control | Family sets priorities and employs staff | Provider runs it under a contract |
| SEBI position | Generally no registration for managing its own money | Depends on activity: adviser, portfolio manager, distributor |
| Cost | Fixed staff and overhead, borne by one family | Fees shared across clients, charged by contract |
| Confidentiality | Information stays in-house, subject to staff discipline | Depends on contract and on the provider's safeguards |
| Conflicts | Mainly between family branches | Also between provider, its products and other clients |
| Leaving | Restructure or close | Terminate and move assets, as the contract allows |
When does a single family office become a multi family office?
Often without anyone deciding it. A close friend's family joins, or a relative's business pays a fee for help. Whether a relative counts as part of the family depends on the rule being applied. SEBI's rules and the GIFT City definition of a single family do not use one common test.
Before you take on anyone new, ask: are they outside the family under the relevant rule, will they pay, and will their money be pooled? A yes to any of these calls for a SEBI check.
Legal questions for a single family office
Setting up alone brings its own legal tasks, which families often overlook.
Who employs the staff?
A trust is not a legal person, so trustees or a company usually sign employment contracts. A company or LLP can make this simpler. Pay to a family member should reflect real work, or the clubbing rules can apply.
Who may give instructions?
Banks and advisers need to know who can act. Write down authority limits, and a second signature for large payments. Internal fraud and family disagreement are more common risks than families expect.
What happens to confidentiality?
Use confidentiality terms for staff and contractors, and limit access to family records. Under the Digital Personal Data Protection Act 2023, personal data held by an office may also need care. Check the current position on the rules in force.
What to check before signing with a multi family office
- Registration: which SEBI registration does the provider hold, and does it cover this service?
- Advice and distribution: is it paid for advice, by product makers, or by both?
- Custody: where are your assets, and in whose name?
- Authority: can it act alone, or only on your instruction?
- Data: who sees family information, and what happens when you leave?
- Exit: notice period, exit fee and handover of records
- Disputes: which forum and which city?
You can check registrations on SEBI's website. We read these contracts for families, as part of our family office services, without commenting on the investments themselves.
This guide is general information, not legal advice. Tax points must be confirmed with your chartered accountant, and rules change, so we check the current text before acting on your matter.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
