The VCC Structure


SCALABLE, FLEXIBLE, TAILORED FOR FUNDS

Singapore
VCC Structure

The Variable Capital Company (VCC) is a new corporate structure in Singapore that was introduced on January 14th, 2020 tailored to address the unique needs of funds. It is considered a game-changer in the world of Singapore’s corporate finance — making it the preeminent financial hub for funds in Asia.

Overview

Key players in the VCC

① VCC Directors

VCC Directors create the fund and its investment strategy as well as outreach and fundraising for investors. They do not necessarily have to be domiciled in Singapore so long as they have a Singapore-based licensed fund manager.

② Singapore Licensed Fund Manager

A Singapore licensed fund management company (FMC) is a necessity for the VCC (unless exempted) and coordinates between the VCC, service providers and stakeholders to ensure compliance with MAS regulations. The license can be either applied for or an existing FMC may assist in operating the VCC.

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

The VCC structure may receive the 13O/U tax exemptions on an umbrella level. The VCC entity can either be a standalone fund or an umbrella structure with multiple sub-funds with its own distinct strategy, fund advisor and investors as all sub-funds have segregated assets and liabilities.

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

Current VCC Entities

Universal flexibility

Private Equity &
Venture Capital →

33%

External Asset Managers
& Multi Family Offices →

28%

Hedge
Funds →

20%

Retail
Funds

14%

Others

5%

Benefits of the VCC

Limitless
Scalability

With scalability and flexibility at its core, the VCC allows for the unlimited sub-funds as you grow and expand.

Umbrella
Efficiency

The VCC tax exemption is assessed on an umbrella level, allowing each sub-fund contributes to the requirements.

Unbounded
Flexibility

Invest across the entire investment universe with assets into private, public and real estate.

Access
Singapore

The VCC allows assets to be safeguarded in a well-regulated & efficient city like Singapore and opens pathway for long-term residency.

Create Possibilities

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

Start a VCC

Get connected to VCC Fund Managers