Setting Up International Multi Family Office Funds In Singapore


SEGREGATED FUNDS & ASSET PROTECTION

The International
Multi Family Office Fund

The VCC has become an increasingly popular option for Asian and international multi family offices looking for fund structures to manage their clients money offshore with asset protection, privacy and tax efficiency in Singapore. The VCC enables these family offices to create segregated funds to either pool assets for private investments or manage individual sub-funds on behalf each of their clients.

Multi Family Office
VCC Overview

Key players in the VCC

① Multi Family Office

Wealthy families are often looking for offshore structures to secure their assets globally. VCCs are a tool that global MFOs can use to structure their clients assets in a scalable and efficient way as the VCC can easily open multiple sub-funds as the MFOs clients’ needs grow. The privacy of investors is also a crucial, as VCC investor information is not publicly available.

② Singapore Licensed Fund Manager

An international Multi Family Office can apply for a Singapore fund license but would need full-time investment professionals in Singapore. Alternatively, it can outsource this role to an existing licensed fund manager in Singapore for easier access.

③ Fund Service Providers

The service providers that provide the operational services for the fund. These include accounting, auditing, legal, and administrative services.

④ VCC Umbrella Fund

Sub-funds can be tailored for a variety of structures and purpose. It can be a way for individual families to manage their assets globally, but VCCs in the same umbrella can also be used by the MFO to start their own managed funds or as an investment pool to invest as a single ticket for private equity.

Key Players of the VCC - Directors, Fund Managers, Service Providers and the VCC Fund

Tax Exemption Requirements

For license-managed VCCs

13O Resident Tax Exemption

13U Enhanced-Tier Tax Exemption

Tax residency

Fund must be tax resident of Singapore

Fund can be constituted in Singapore or overseas

Fund manager requirements

Requires a Singapore-based CMS licensed fund manager

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals

AUM

No restrictions

Minimum fund size of SGD 50 million

Fund reporting requirement

Min. SGD 200,000 annual expenses

Min. SGD 200,000 annual local business spending

Fund administration requirement

Annual statements to investors. Tax filing to IRAS for non-qualifying investors.

None needed

Fund administration requirement

Requires a Singapore fund administrator

Other reporting requirements

Annual MAS declaration & annual tax returns to IRAS

13O Resident Tax Exemption

Fund must be tax resident of Singapore

Requires a Singapore-based CMS licensed fund manager and fund administrator

No minimum AUM

Min. SGD 200,000 annual expenses

Annual MAS declaration & annual tax returns to IRAS

13U Enhanced-Tier Tax Exemption

Fund can be constituted in Singapore or overseas

Requires a Singapore-based CMS licensed fund manager with 3 investment professionals & a fund administrator

Minimum fund size of SGD 50 million

Min. SGD 200,000 annual local business spending

Annual MAS declaration & annual tax returns to IRAS

Setup Steps & Timeline

Singaporean Efficiency

ProcessEstimated Time
1) Engage a fund manager as the central coordinator for your fund
2) Confirm the fund structure’s term sheet such as the investment period, fund life, management fee, carry, valuation frequency, investment targets and fund size, etc.
3) Select a legal counsel, fund administrator, corporate secretary and auditor
3) Draft legal documents such as company constitution, private placement memorandum, management, subscription and redemption agreements, etc.3-4 weeks
4) Register and Incorporate the VCC with the MAS4-6 weeks
5) Apply for the 13O/U tax exemption4-6 weeks
6) Start onboarding the investors
7) Create additional sub-funds for different investors and strategies

Benefits of the VCC
For Multi Family Offices

Scalable &
Segregated

Under a single umbrella, unlimited sub-funds can be opened that would have no bearing on other funds.

Flexibility of
Strategies

Funds can have a variety of strategies with different fund advisors across any global private or public assets.

Investor
Privacy

Investors of the VCC are only accessible by the MAS for AML/CFT compliance and never to the public.

Access
Singapore

Investing into Singapore gives the assurance their assets are well-safeguarded by strong regulations and easily accessible within Asia.

A New Expansion

Get connected with our service partner providers to inquire how you may start your multi family office fund and access Singapore — the preeminent financial hub of Asia
[email protected]

Start a Multi Family Office VCC

Get connected to VCC Fund Managers