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.
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.
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.
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.
A VCC must have these key entities:
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.
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.
This application form requires you to provide the VCC name, type of the VCC, nature of activities, and office details.
Our team will go through all the documents and assist you in preparation of documents required for the quick approval.
Once all documents are reviewed and checked, we will file the paper for the incorporation of the company.
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:
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.
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.
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 :
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.
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