Office Address

123/A, Miranda City Likaoli Prikano, Dope

Phone Number

+0989 7876 9865 9

+(090) 8765 86543 85

Email Address

info@example.com

example.mail@hum.com

VCC Variable Capital Company Singapore

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Singapore Variable Capital Company Services

This permit is among the latest licensing options available in Singapore. The VCC (Variable Capital Company) is a new investment structure under the Variable Capital Companies Act. It became valid as of following its approval by the Monetary Authority of Singapore (MAS). In the last over one year plus period that the VCC (Variable Capital Company) corporate structure has taken effect, many can attest that it complements other Singapore's existing investment options. The ACRA administers the VCC (Variable Capital Company) investment structure. Also, all the VCCs must operate under the management of a Permissible Fund Manager. Note that the introduction of VCC (Variable Capital Company) was Singapore's way of supporting the investment funds structure.

Advantage of VCC

Reasons Why the Variable Capital Company Essentials

Very Flexible

This structure is flexible, unlike other corporate investment structures, especially regarding shares' redemption. Fund managers have flexible ways to meet all the obligations related to dividend payments. Also, you can use it for close-end and open-end fund strategies.

Privacy

The VCC structure is comfortable to work with since you mustn't disclose the shareholders to the public. However, you must register the shareholders and disclose these details when the authorities request them for legal purposes.

What are VCC Registration Requirements?

Name Registration

The first step in the registration process is to find a suitable name for your VCC (Variable Capital Company) and then search this name on the Bizfile + Search Directory to determine if it is available. Note that you must choose a unique name that matches the Minister of Finance’s requirements.

Staff Requirements

A VCC must have these key entities:

  • At least one director is responsible for the daily operations of a VCC (Variable Capital Company). Ensure that the individual you appoint is a Singapore resident and matches the standards under the VCC (Variable Capital Company) Act.
  • Another primary employee is a company secretary who must take office within six months after its incorporation. He/she must be a Singapore resident.
  • An Auditor is a must-have individual who must join the VCC (Variable Capital Company) within three months after its registration. Note that there are no audit exemptions.
  • Every VCC must appoint Permissible Fund Manager Responsible for the operations and the property of the VCC. Who is a permissible Fund Manager? It refers to an LFMC that has a CMS, an RFMC, or a financial institution.

Physical office

You must offer the ACRA an office address where all the necessary notices about the VCC are addressed and where you can house all the essential documents. Ensure that this office is accessible and operational. However, it is not necessarily where the operations take place.

Constitution

Every VCC (Variable Capital Company) must have a Constitution (Legal document) which the applicant must submit for the registration process. It defines the VCC (Variable Capital Company) characteristics, the regulatory framework, operations details, and every key employee’s responsibilities. This document is private and only available to the relevant authorities.

Application Process

Variable Capital Company Application Process

01

Name Application

This application form requires you to provide the VCC name, type of the VCC, nature of activities, and office details.

02

VCC incorporation

Our team will go through all the documents and assist you in preparation of documents required for the quick approval.

03

Application Filing

Once all documents are reviewed and checked, we will file the paper for the incorporation of the company.

Registration Fee Requirements

Application for a VCC incorporation includes several submissions to the ACRA, and in every submission, there are statutory filing fees that you must pay. These applications include:

  • Approval for approval of the VCC name: The first step of the VCC application is submitting your VCC name, which requires you to pay S$15.
  • Application for the incorporation in the VCC structure: You need to pay S$8,000
  • Transfer of registration application: In this stage, you must pay a statutory fee of S$9,000. When you register sub-funds, each of them has a fixed registration fee of S$400.
  • Subfund registration: The registration fee for every sub-fund is S$400

What Is Processing Time to Set Up VCC?

The VCC incorporation approval may take 14 to 60 days before the subscriber may get the results. This time also includes the referral time to other agencies for review in case of any challenges.

How we can help

From the details above, you can get that the VCC registration is not easy, and the entire process requires the necessary knowledge in this sector. One of the most challenging steps is the preparation of legal documents such as the constitution. You may need a professional to go through the documents and make the necessary adjustments. Our team consists of some of the most talented individuals who will make your experience better. Besides, our staff has what it takes to ensure an accurate VCC registration process and fast processing. You don't need to worry about all the services related to this field since we got your back. So message us today and ensure a smooth VCC registration process.

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Variable Capital Company Investment

VCC is a new investment vehicle introduced in Singapore. It is a company structure designed for investment funds and offers several benefits compared to other investment structures.

  • Flexibility: One of the key features of a VCC is that it allows for variable capital, which means that investors can buy and sell shares in the fund without affecting the underlying assets of the fund. This provides greater flexibility for investors, as they can easily adjust their exposure to the fund as their investment needs and preferences change.
  • Tax benefits: Another key feature of a VCC is that it benefits both the fund and the investors. For example, a VCC can be structured as a tax-exempt entity, meaning it can enjoy tax exemptions on income derived from qualifying investments. Additionally, investors can enjoy tax benefits such as reduced withholding tax on dividends and exemption from capital gains tax on the sale of VCC shares.
  • Registration: To establish a VCC in Singapore, the fund must first be registered with the Accounting and Corporate Regulatory Authority (ACRA) and then licensed by the MAS as an investment fund. The VCC must also appoint a fund manager licensed by the MAS.
  • Asia-Pacific region: The VCC investment structure is a popular option for domestic and foreign investors looking to invest in the Asia-Pacific region. It offers a flexible, tax-efficient investment vehicle that can be tailored to meet the preferences of investors. It is therefore expected to continue to be a key driver of growth in the Singapore investment landscape in the coming years.
 

Why Do I Need an Additional License for It?

If you plan to establish a Variable Capital Company (VCC) in Singapore to manage investments, you must obtain additional licenses from regulatory authorities in Singapore. These licenses are required to ensure that the VCC is operating in compliance with relevant regulations and to provide protection to investors.

A VCC in Singapore must obtain two types of licenses :

  • Variable Capital Company License: This license is issued by the Accounting and Corporate Regulatory Authority (ACRA) and is required to establish a VCC in Singapore. The VCC must comply with certain requirements, including having a minimum paid-up capital, appointing a local fund manager, and adhering to regulatory guidelines on investment and operational risks.
  • Capital Markets Services License: This license is issued by the Monetary Authority of Singapore (MAS) and is required for any company managing investment funds. The VCC must appoint a fund manager who is licensed by the MAS and who is responsible for managing the investments of the VCC in compliance with MAS regulations.

That way, the VCC shows investors and the MAS that it is committed to maintaining high standards of transparency and accountability. Additionally, the two licenses assure investors that their investments are managed by a reputable and trustworthy entity, which can help to attract capital and support the growth of the VCC.

ASKED QUESTIONS

FAQs About The Variable Capital Company

Registration of a VCC under ACRA can be carried out by a subscriber of the proposed VCC or a CSP (Corporate Service Provider). Note that subscribers can either be a corporate or a person who is part of the proposed VCC.

No. A VCC is not mandatory to apply for approval from MAS before its registration process. However, note that existing requirements under the Securities and Futures Act also apply for the VCC.

The VCFM doesn’t require minimum base capital and risk-based capital; hence you don’t have to worry about the money.

Singapore's regulatory framework requires that a VCC must have a minimum of one director living in Singapore. Note that it is a must that the director has the proper qualifications to serve as the director.

Unfortunately, this question has no direct answer since there are some conditions. For example, foreigners can re-domicile their overseas fund in Singapore as VCC only if their investment structure matches the VCC structure. Also, the fund managers must register as a VCC and report to the foreign authorities about their re-registration in Singapore.

The application process is quite complicated and, in most cases, requires the assistance of professionals. For instance, you can seek these services from our website, and our reliable team will assist you in the whole process.

The first step in the registration process of a VCC is to give your VCC a name and submit it for approval. Later, you must register the name within the next 120 days after its approval to avoid your application from lapsing

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