Setting Up Your Own Independent Asset Manager (LFMC) in Singapore
What it takes to get your own CMS licence — capital, people, compliance and MAS review — and an honest decision matrix on whether to licence up or use 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.
This page covers the LFMC route end to end — and, just as importantly, when not to take it. If you only want to launch a fund quickly, appointing an existing Permissible Fund Manager may get you there in weeks without the capital lock-up.
What is an independent asset manager / LFMC?
An independent asset manager is a company that manages investments for clients under its own MAS licence, rather than under someone else's. In Singapore that company is an LFMC holding a CMS licence for fund management. "Independent" simply means you own and control the regulated entity — you set the strategy, hold the licence, and answer to MAS directly. The most common tier for boutiques is the Accredited/Institutional (A/I) LFMC, which serves accredited and institutional investors only.
How do I set up my own asset management company in Singapore?
The build-out runs roughly like this, much of it before you submit to MAS:
- 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 | RBC ≥120%; no AUM cap post-RFMC |
| 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 |
The base capital is genuinely locked up as regulatory capital — it is not seed money you can freely deploy into the fund. That is the single biggest cash difference versus launching under an existing manager.
How long does an LFMC application take?
MAS review of a complete A/I LFMC application typically runs around six months from submission (a VCFM is faster, around four months). Before you submit, you still need to incorporate, capitalise, hire and build compliance — so the real elapsed time from decision to live manager is longer. If your investors are ready now, that wait has a cost.
Licence vs use a manager — the decision matrix
This is the choice that defines your launch. There is no universally right answer; it turns on AUM, timeline, control and economics.
| 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 | Investment input retained; manager carries regulatory duties |
| 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 common pattern: launch under an existing Permissible Fund Manager to get to market and build a track record, then licence up once AUM and economics justify your own LFMC. You are not locked into either path forever.
Weighing your own licence against a faster launch?
We partner with MAS-licensed CMS fund managers. Tell us your mandate, strategy and timeline and we'll pressure-test which route fits.
Speak to a specialist →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?
It depends on AUM, timeline and control. Your own LFMC gives full ownership but costs at least S$250k of locked capital, two SG-based hires and roughly six months of review. Launching under an existing Permissible Fund Manager lets you start a VCC in weeks with no capital lock-up. Many managers launch under a manager first and licence up later.
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.