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

VCFM License Application

What are main features of VCFM License?

The main feature of the VCFM license is that it must invest 80% of its committed capital in particular services or products. These products must be incorporated for at most ten years before the first investment by unlisted enterprises. Any follow-up investments on the products qualify even if the products’ incorporation took place over ten years ago when the follow-up investment is released.

These facts explain that the VCFM license is Singapore’s permit of funds’ investments in unlisted startups. MAS expects the VCFM to only make investments in unlisted companies. Note that these funds can’t invest in public and listed securities. However, a VCFM may hold listed securities in some particular cases. Such instances include if the fund purchased the securities before the company before its listing. Why is that? It is because MAS doesn’t expect the VCFM to withdraw its investment after a company becomes listed. If your entity is in this category, then the Singapore VCFM License is necessary.

What is the processing time for VCFM License application?

When you submit your application form, MAS expected processing time ranges between two to three months. They take up this time to review the requirements and other details and process your application. However, this short period is only applicable for well-defined and straightforward applications that meet the admission requirement criteria. MAS may take more than three months for exceptional cases like an incomplete application form and inaccurate data.

With these facts, a professional is a basic need as you apply for the VCFM license and one of the best options is our website. We offer 24/7 services, and you gain access to a team of experts to help you in the application process.

How much is the Best VCFM License fee?

After applying for the best VCFM license, MAS requires you to pay S$4000 during the registration process.

Why you need this license?

Suitable for Startups, Venture Capital, Investment related activities

Get started

Carry out investment in Startups unlisted companies

Suppose you want to invest in a new product in Singapore under a startup company; this license is relevant. It allows you to make investments in these small companies legally.

Less Compliance

VCFM license require minimum requirement from MAS as compared to RFMC or LFMC. Post licenses approval, compliances are less and easy for the funds.

Avoid non-compliance and business disruption

MAS is strict with its financial regulatory framework and imposes severe penalties for non-compliance. Therefore, if you want to invest in small companies, getting the VCFM license is the best option.

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What are the VCFM License Requirements?

As mentioned above, the VCFM License is most suitable for Venture Capital fund management entity. Therefore, there are several application requirements that you must meet before MAS approves your license.

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Minimum Base Capital

Unlike other licenses, MAS doesn’t require a VCFM to have a minimum base capital

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Risk-based Capital

MAS doesn’t require a VCFM to have a minimum risk-based capital; hence you don’t have to include extra money in case of risks.

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Compliance Function

MAS expects a VCFM to include a compliance arrangement, not necessarily an independent program. However, the compliance arrangements must match its nature and operation.

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AML/ CFT Requirements

A VCFM must follow all the AML / CFT policies to protect the company from financial fraud and money laundering issues.

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Staff Requirements

MAS requires VCFM to have at least two directors where one of them must be a full-time worker. Note that two of the workers and two representatives must be Singapore-based.

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Physical office requirement

MAS requires that a VCFM should have a physical office in Singapore. Note that virtual offices are not acceptable since the office doesn’t qualify as a dedicated one.

Annual Compliance

  • VCFM is mandated to submit an annual declaration to MAS within one month before the financial year ends. However, it is not a must that these companies file financial and auditors’ reports.
  • Provide information to MAS as when required by them.

What is the VCFM Registration Process?

The VCFM license is required for any company that manages a venture capital fund in Singapore. Here is a breakdown of the VCFM registration process :

  • Eligibility : The company must determine if they meet the eligibility criteria set out by the MAS for VCFM registration. This includes requirements such as having a permanent place of business in Singapore and a competent and fit-and-proper management team.
  • Prepare the application documents : The company must prepare the necessary documents, including the application form, business plan, compliance manual, financial projections, and other relevant information.
  • Review by MAS : The MAS will review the application. It may also conduct on-site inspections and interviews with key personnel to assess the company’s compliance and risk management processes.
  • Approval or Rejection : After reviewing the application, the MAS will either approve or reject the application. If the application is rejected, the company will be given a reason for the rejection and one is free to appeal the decision.
  • Compliance with License Requirements : Once the VCFM license is issued, you must comply with ongoing reporting requirements and periodic inspections.

How Can I Appeal a License Application Rejection by MAS?

Should your license application be rejected, you may have the option to appeal the decision. Follow these steps to appeal the rejection :

  • Obtain the reason for the rejection : The first step is to obtain the reason. The MAS will provide a detailed explanation of the reasons for the rejection in writing. You should carefully review the reasons given and identify the areas of concern.
  • Seek professional advice : Seek professional advice from a legal or regulatory expert experienced in MAS regulations and guidelines. They can help you understand the reasons for the rejection and advise you on the best approach for your appeal.
  • Submit an appeal : You can appeal to the MAS within 14 days of receiving the rejection notice. The appeal should be in writing and should address the concerns raised by the MAS in the rejection notice.
  • Provide supporting documents : You may also provide any additional supporting documents that may help support your appeal. These documents should address the concerns raised by the MAS.
  • Attend a hearing : The MAS may invite you to attend a hearing to present your case. This hearing may involve a panel of experts and may be conducted in person or via video conferencing.
  • Await the outcome : After the hearing, the MAS will consider your appeal and decide. The decision may be to uphold the rejection, approve the license, or approve the license with certain conditions or requirements.
ASKED QUESTIONS

6 FAQs about the Singapore Venture Capital Fund Management Licenses (VCFM)

VCFM deals with funds’ investments in unlisted companies and their products that must not be incorporated within more than ten years before the official application day.

VCFM company cannot make investments in listed companies. However, when their investments date back before a company is listed, they remain under its name.

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

Singapore is strict with its regulatory framework; hence there are legal consequences when running an LFMC without the necessary license.

Yes. But, MAS only requires it to submit an annual declaration within a month before the financial year ends

The VCFM must undergo an annual internal audit

Every business enterprise in Singapore undertakes funds’ investments in unlisted companies to promote innovation.

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