What are the requirements for migrating an offshore Fund to Singapore?
Do you own an investment fund that is currently domiciled in an offshore jurisdiction? If yes, have you thought of relocating it to Singapore?
If that is the case, then you are in the right place. This article offers you the necessary guidelines to migrate an offshore fund to Singapore and make it legal to run its operations referring to the Offshore Fund Migration to Singapore process.
We will venture into the investment funds sector relating to the Cayman Islands, despite fund managers operating in Singapore, and keep in mind the VCC financial structure in Singapore.
Many fund managers globally often choose Singapore as the best center for funds since it has a stable regulatory framework that attracts international managers to migrate or re-domicile investment funds in Singapore. It has regulations that encourage investments in the financial sector.
The Amendments in the Private Funds Sector in the Cayman Islands (Foreign Fund Migration to Singapore)
Currently, the Cayman Islands private funds sector operates under regulations that were amended a while back. Private funds run under the Cayman Islands Monetary Authority’s jurisdiction as the area works on the anti-money laundering policies. The island went to a complete turnover a few months ago as every private fund migrating to Singapore needed to adhere to the laws. As a result, the sector runs under stricter regulations which results in a higher cost. The law states that:
✔️ Private funds must be audited annually by an officer approved by the CIMA
✔️ The four-eyed rule that state every firm need two or more directors and two naturally employees are listed
✔️ Firms must name anti-money laundering registered officers
✔️ Demonstrate compliance to the current laws
The regulatory framework promotes transparency in the financial sector without limiting its operations.
The Cayman Islands offers funds to the Private Fund sector, but there are considerations to keep in mind when applying for the funds, including:
- Costs that come with these funds are high, and you must include compulsory audits‘ cost
- There is no guarantee that the government won’t add more laws with time since the island introduced more laws affecting the Private Fund sector last year
- The Cayman Islands remains in the list of non-cooperative jurisdictions and low-tax
Why Migrate Offshore Fund to Singapore? (Advantages of Migrating Fund to Singapore)
Recent reports claim that many international business people are opting to transfer offshore funds to Singapore. Why is that? Setting up a business and operating it in the country is straightforward. The country features a stable regulatory structure that features:
✔️ Powerful regulatory standards
✔️ High-quality labor resources
✔️ Good administration
✔️ Influential global connection
Reports from the last couple of years show how many fund managers have moved their businesses to Singapore.
The VCC and Offshore Fund to Singapore VCC Migration
The Variable Capital Company (VCC) Act has advanced the financial environment. It is a structure that encourages the Singapore-based asset management sector, family offices, and funds to re-domicile in Singapore. This act is bold, but its effectiveness has placed Singapore among the top countries operating in the international investment sector.
Requirements for Offshore Fund to Convert to VCC
The VCC structure offers flexibility in:
✔️ Segregating assets and liabilities
✔️ Enabling tax efficiency
✔️ Supporting various fund structures (e.g., migrating offshore unit trust to Singapore, limited partnership fund, or investment company)
Fund Migration Services Singapore – Get Legal Advisors and Consultants
Hiring consultants becomes vital for conducting a smooth Singapore fund re-domiciliation process in offshore fund relocation to Singapore. Your guide for Singapore fund re-domiciliation needs these professionals to provide expert advice.
- MAS requirements for fund migration
- The financial effects which investors experience upon moving funds to the Singaporean territory need detailed examination.
- The migration of an offshore fund to Singapore will carry specific financial costs.
Whether you are migrating a fund to VCC, setting up a licensed fund management company, or navigating Singapore fund management regulations, expert support is key.
Conclusion
The VCC act has boosted Singapore’s ability to compete at the International investment level improving the fund to Singapore’s Management sector. Its regulatory framework also plays a crucial role in making Singapore the home for international fund managers.
