India’s rapid wealth creation is driving a surge in family offices, turning what was once a niche financial arrangement into one of the country’s most dynamic sectors.
According to an EY report, the number of family offices has grown from just 45 in 2018 to nearly 300 in 2024. These entities now manage vast portfolios as India stands on the cusp of a US$1.5 trillion intergenerational wealth transfer. For accounting and advisory firms, the shift presents both a challenge and a massive opportunity to expand their service offerings.
‘Families are looking for structures designed specifically around their goals and values’
‘Family offices in India have grown rapidly because more families now have significant wealth to manage. About 13,000 families already hold over US$30m, a number expected to reach 19,000 by 2028,’ says Surabhi Marwah, co-leader for private client services at EY India. ‘Much of this growth is driven by first-generation entrepreneurs who are more open to risk, global diversification and professional governance.’
Beyond conventional vehicles
Families are now looking far beyond conventional investment vehicles, diving into private equity, private credit, venture capital, real estate investment trusts and infrastructure investment trusts. At the same time, there’s a heightened focus on succession planning, family constitutions and robust governance structures.
‘Families are no longer satisfied with one-size-fits-all limited liability partnership or holding company setups,’ Marwah says. ‘They are looking for structures designed specifically around their goals and values.’
The sectoral expansion mirrors India’s broader economic momentum and growing ultra-high-net-worth population. The country now ranks among Asia’s fastest-growing family office markets, with assets under management expected to climb from US$30bn in 2024 to US$45bn by 2027. Notably, family-run enterprises generate nearly 79% of India’s GDP.
‘What once served as simple vehicles for managing family wealth are now evolving into highly professionalised entities, playing an influential role in shaping family legacies and contributing to broader economic progress,’ says KR Sekar, partner and leader at Deloitte Private at Deloitte India.
Overseas attraction
Increasingly, Indian family offices are setting their sights overseas. According to Marwah, Dubai is often the preferred first stop, offering both geographic proximity and a favourable business climate. While Singapore attracts many with its robust financial infrastructure and regulatory clarity, Hong Kong is emerging as the top choice for larger operations, its sophisticated ecosystem and mature market better suited to handling complex, diversified portfolios.
‘Indian family offices are aligning wealth with family values’
Behind the global ambitions is a new generation of younger, tech-savvy heirs. Armed with international education, they demand greater transparency, sustainable practices and crossborder investment strategies. ‘Indian family offices are no longer focused only on wealth preservation. They are actively shaping capital strategy, aligning wealth with family values and positioning for the future,’ says Sekar.
But going global brings its own set of challenges. Saji Mathew, partner and deputy managing director at Acclime, points to the complex compliance requirements that come with international diversification.
‘International investments for Indian family offices present compliance and regulatory challenges, particularly concerning currency exchange control under the Foreign Exchange Management Act,’ says Mathew. ‘The complexity of tax reporting – capital gains, dividends and interest income across jurisdictions – makes precise tracking and documentation essential.’
Layers of complexity
The Reserve Bank of India’s Liberalised Remittance Scheme, with its caps on overseas transfers constraining how resident individuals structure their offshore investments, adds another layer of complexity.
In terms of data consolidation, families grapple with reconciling different accounting standards, such as IFRS Standards versus India’s generally accepted accounting principles. Meanwhile, the rise of alternative assets, including private equity, art collections and digital assets, requires specialised valuation expertise and stretches reporting capabilities.
To adapt, professionals must implement international tax structuring that leverages double taxation agreements, use offshore trusts and philanthropic vehicles for estate planning, and deploy cloud-based accounting platforms to automate reporting and ensure compliance across jurisdictions.
Despite the advantages on offer, family offices are hesitant to modernise their structures and diversify investments. EY’s recent survey shows that 57% still allocate less than 10% of their portfolios in private equity or venture capital. While 59% have established wills or constitutions, only 19% have embraced formal structures such as private trusts or limited liability partnerships – a gap that could prove costly as wealth transitions to younger generations.
For accountants, India’s evolving family office sector opens new doors. Both succession planning and trust structuring have emerged as high-value advisory services, driven by massive intergenerational wealth transfer and the formalisation of family offices.
‘Firms can stand out by building real expertise in areas that matter most to wealthy families’
‘Succession planning, once seen as a future-facing exercise, has now assumed immediate significance,’ says Sekar. As thousands of first- and second-generation entrepreneurs prepare to pass on assets and leadership, they face complex decisions influenced by longer life spans, global mobility and changing family structures.
High stakes
And the stakes are high. Without clear succession frameworks, families risk operational disruption, valuation loss and even potential legal disputes. Accountants are stepping up to develop family constitutions, establish governance frameworks and orchestrate leadership handovers that safeguard both wealth and legacy.
Trust structuring now encompasses far more than tax efficiency, integrating asset protection, crossborder estate planning, philanthropy and compliance with regimes such as the US Foreign Account Tax Compliance Act and the global Common Reporting Standard. Accounting firms can build long-term client relationships and recurring revenue by offering governance support, trust administration and consolidated reporting services.
To differentiate in this competitive space, accounting firms need to merge technical expertise with holistic advisory services, spanning private-client tax and crossborder planning to trust law and family governance, all packaged with digital reporting tools that give families a bird’s eye view of cashflows and liquidity.
‘Firms can stand out by going beyond standard tax and audit work and building real expertise in areas that matter most to wealthy families,’ says Marwah. ‘The firms that connect all these elements into a single, end-to-end service can position themselves as true long-term partners for family offices, rather than just service providers.’
