India’s ultra-rich are reshaping the way they manage wealth, transitioning from fragmented portfolios and informal advisors to the more structured approach of family offices. The number of family offices in India has surged from just 45 in 2018 to nearly 300 by 2024, reflecting a shift toward professional, globally-oriented wealth management solutions. This trend is becoming a new gold standard among India’s wealthiest families, who are now leveraging these setups to handle complex financial, tax, and succession planning challenges.
Family offices operate much like private financial institutions. They manage not only investments but also oversee succession planning, tax structuring, philanthropic giving, and preparing the next generation of leaders to take over wealth management. These sophisticated setups consolidate large, complex wealth portfolios into single, cohesive entities that enforce discipline, governance, and strategic oversight. As a result, family offices help in mitigating risks while ensuring wealth preservation for future generations.
India's upcoming wealth transfer, expected to be over $1.3 trillion over the next decade, is accelerating demand for family offices. These structures provide a systematic approach to address growing complexity in managing assets, with an emphasis on protecting family wealth across generations. Additionally, the rise of startups, IPOs, and liquidity events is creating new opportunities for high-net-worth individuals to seek personalized wealth management solutions that family offices are ideally positioned to offer.
Family offices are also popular among both legacy families and first-generation entrepreneurs. For younger, tech-savvy entrepreneurs, these offices allow for flexibility in creating personalized investment mandates, privacy maintenance, and legacy-building from the outset. Additionally, the use of family offices provides an efficient, transparent, and global-access approach to managing family wealth.
Family offices are evolving in response to India’s economic growth and regulatory changes. Jurisdictions like GIFT City have become attractive for setting up global-facing family offices, offering relaxed regulations and easier cross-border wealth management. However, tax compliance and regulatory complexities remain top concerns, with many family offices adopting structures like LLPs and trusts to mitigate these challenges.
Succession planning is another area where family offices are making a difference. Nearly 60% of families now have formal plans in place, using tools like private trusts or LLPs. These structures offer flexibility and security, allowing families to ensure the continued success of their wealth for generations. Offshore trusts and special purpose vehicles (SPVs) in tax-compliant jurisdictions help families manage foreign assets while adhering to Indian laws.
The process of setting up a family office involves careful planning, with families defining their goals whether for investment, philanthropy, or succession and building the appropriate legal and governance structures. Family offices also focus on risk management, estate planning, and administrative support, while adopting technologies such as digital security and sustainable investing practices like ESG.
Family offices are becoming a strategic necessity for India’s ultra-rich. What started as a tool for wealth preservation is now a platform for building dynasties and fusing capital with purpose. As the wealth of India’s richest families continues to grow and diversify, family offices will play a crucial role in securing their financial legacy and navigating the complexities of cross-border wealth management.
