Getting to Know the Variable Capital Company (VCC)

Variable Capital Company (VCC)Meet the Variable Capital Company (VCC), a unique corporate entity structure designed specifically for investment funds. Launched on 14 January 2020, the VCC is Singapore’s way of making its fund management industry more approachable and boosting its reputation as a global, competitive fund domicile.

Often hailed as a ‘Game Changer,’ the VCC’s mission was to structure and regulate a variety of investment funds. To enhance the effectiveness of the VCC in Singapore, the Variable Capital Companies Grant Scheme (VCCGS), funded under the Financial Sector Development Fund (FSDF), was established.

The VCCGS scheme, valid until 15 January 2023, aims to absorb the costs associated with the incorporation or creation of a Variable Capital Company, covering up to 70% of an overall expense cap of $150,000 per VCC.

 

Who Can Apply?

To qualify, fund managers must have:

  • Established a VCC in Singapore, or,
  • Transferred an incorporated foreign entity to Singapore as a VCC, holding proper legal documentation for this transfer.

 

What Makes A Project Eligible?

To be eligible under the scheme:

  • The VCC being incorporated by the fund manager must not already be receiving a government grant or incentive covering the same costs that the scheme addresses.
  • A limit of three (3) incorporated VCCs per qualifying fund manager is permitted, in relation to work completed.
  • All eligible expenses and costs must be paid to service providers based in Singapore for the VCC’s incorporation, registration, and any sub-funds.
  • Applying for the grant scheme to register sub-funds without sufficient evidence of VCC incorporation is disallowed. However, the qualifying fund manager can apply to have the scheme cover costs for the registration of the sub-fund under the VCC.
  • For a newly incorporated VCC, the application should be made and submitted within three months from the date stated in the notice of incorporation or notice of transfer of registration issued by ACRA. For foreign companies transitioning to Singapore as a VCC, application and registration should occur within three months from ACRA’s confirmation of the VCC’s proof of deregistration.

How to Apply: If you’re keen to pursue this route, you’re advised to discuss your proposal with the Monetary Authority of Singapore (MAS). For more details regarding the VCC, you can refer to this guide.