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.
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.
After applying for the VCFM license, MAS requires you to pay S$4000 during the registration process.
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.
VCFM license require minimum requirement from MAS as compared to RFMC or LFMC. Post licenses approval, compliances are less and easy for the funds.
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.
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.
Unlike other licenses, MAS doesn’t require a VCFM to have a minimum base capital
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 :
Should your license application be rejected, you may have the option to appeal the decision. Follow these steps to appeal the rejection :
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.