Setting Up Your Own Independent Asset Manager (LFMC) in Singapore
Establishment requirements for an LFMC, including capital, staffing, compliance and the comparison with appointing an existing manager.
Setting up your own independent asset manager in Singapore means incorporating a company and getting it licensed by the Monetary Authority of Singapore (MAS) to manage funds — usually as a Licensed Fund Management Company (LFMC) holding a Capital Markets Services (CMS) licence. This gives you full ownership of the regulated manager, your own brand, and the ability to manage your own VCC directly. It also commits you to base capital, two Singapore-based hires, an ongoing compliance function and roughly six months of MAS review.
Assess the resources required to establish and operate an LFMC alongside the scope and fees of an appointed permissible fund manager. The two arrangements assign responsibilities differently and should be compared before committing to a launch plan.
What is an independent asset manager / LFMC?
An independent asset manager manages client investments through its own regulated firm. In this guide, the focus is on the Accredited/Institutional (A/I) LFMC, which serves accredited and institutional investors. Ownership of the firm gives its principals management responsibility; it does not by itself establish freedom from commercial conflicts.
How do I set up my own asset management company in Singapore?
Plan the following work before and during the MAS application:
- Incorporate a Singapore private limited company to be the manager.
- Capitalise it with at least S$250k base capital (A/I LFMC) and plan to hold risk-based capital of at least 120%.
- Hire at least two Singapore-based professionals — typically a CEO/director and a representative — who are fit-and-proper and resident in Singapore.
- Build compliance and risk functions, internal policies, and a business plan MAS can assess.
- Take out professional indemnity insurance and arrange an independent auditor.
- Secure a physical Singapore office and demonstrate genuine substance.
- Apply to MAS for the CMS licence and respond to queries through the roughly six-month review.
How much capital do I need?
The base capital floor depends on the licence tier:
| Tier | Investors served | Base capital | Notes |
|---|---|---|---|
| A/I LFMC | Accredited & institutional only | S$250k | Capital, asset limits and licence conditions must be checked against the manager’s actual MAS approval; conversion from RFMC status did not automatically remove every AUM restriction. |
| Retail LFMC | Retail + accredited + institutional | S$500k | S$1m if managing a retail CIS |
| VCFM | Qualifying VC funds | No regulatory minimum | Confined to qualifying VC funds |
Distinguish the management company’s regulatory capital from the capital committed to the fund. Include both in the funding plan, together with establishment costs and continuing operating expenses.
How long does an LFMC application take?
The indicative review period for a complete A/I LFMC application is around six months; the VCFM estimate below is around four months. Incorporation, capital, recruitment and compliance preparation add time before submission. Confirm the applicable review guidance and build contingencies into the launch plan.
Comparing management arrangements
Compare the two arrangements against the strategy, investor requirements, available team and continuing costs.
| Factor | Set up your own LFMC | Launch under an existing manager |
|---|---|---|
| Upfront capital | ≥ S$250k locked base capital | No base-capital lock-up |
| Time to launch | ~6 months MAS review + build-out | Weeks (VCC incorporation) |
| Headcount | ≥2 SG-based pros from day one | Manager already staffed |
| Control | Full — you own the manager | Role defined by the agreement and applicable licensing requirements |
| Ongoing cost | Compliance, audit, PI insurance, capital | Platform/management fee |
| Best when | Large AUM, long horizon, brand matters | Speed to market, lean start, prove track record first |
A sponsor may reconsider the management arrangement as its business develops. Any change requires a transition plan covering the fund documents, provider agreements and applicable regulatory requirements.
Discuss the proposed management arrangement
Describe your strategy, investor base, operating resources and timetable to request an appropriate specialist introduction.
Discuss your requirements →How this fits the bigger picture
Your own LFMC is one route to the "manager" building block in how to start a fund in Singapore. The full licence map is on fund management licence: CMS, LFMC & VCFM. Whichever route you take, the manager pairs with a VCC vehicle, the provider stack, and usually a 13O/13U tax incentive. Established external asset managers often use the LFMC step to graduate from advising to managing.
Frequently asked questions
How do I set up my own asset management company in Singapore?
Incorporate a Singapore company, capitalise it with at least S$250k of base capital for an A/I LFMC, appoint at least two Singapore-based professionals and fit-and-proper directors, build a compliance and risk function, take out professional indemnity insurance, and apply to MAS for a CMS licence. MAS review typically takes around six months.
How much capital do I need for an LFMC in Singapore?
An A/I LFMC requires S$250k of base capital and risk-based capital of at least 120%. A Retail LFMC requires S$500k (S$1m if it manages a retail collective investment scheme). A VCFM has no regulatory minimum but is confined to qualifying venture capital funds.
Is it better to get my own licence or use an existing manager?
Assess the planned activities, available staff, capital and continuing costs. Establishing an LFMC gives the firm direct management responsibilities under its licence. Appointing an existing manager creates a separate service relationship; it does not transfer that licence to the sponsor. Compare the agreement and responsibilities before choosing.
How long does it take to get an LFMC licence?
MAS review of a new LFMC application typically takes around six months from submission, assuming a complete application and a credible team. Pre-application build-out adds further lead time before you submit.
VCC Singapore is an independent informational resource and is not a regulator, law firm or tax adviser. Licensing requirements, capital floors and review times are set by MAS and change periodically — confirm the current position before acting. This page is general information, not legal, tax or financial advice.