VCC Solutions
Bringing integrated solutions across eight service offerings,
including Fund Administration, Regulatory and Tax, to meet your Variable Capital Company's requirements.
including Fund Administration, Regulatory and Tax, to meet your Variable Capital Company's requirements.
What is a Variable Capital Company?
A Variable Capital Company (VCC) is a transformative corporate structure tailored to support investment funds in Singapore. This versatile framework allows companies to issue and redeem shares with ease, enabling dynamic management of assets and investments.
The VCC structure accommodates both open-ended and closed-ended funds, making it a preferred choice for hedge funds, private equity funds, real estate funds, and more. Its flexibility, combined with Singapore’s attractive tax incentives, has solidified the VCC as an essential vehicle for fund managers operating in the region.
Understanding the VCC Structure in Singapore
Definition
A VCC is a legal entity designed for collective investment schemes, allowing for both open-ended and closed-ended fund structures. It can be established as a standalone fund or as an umbrella entity with multiple sub-funds, each with segregated assets and liabilities.
Benefits of a VCC
A Highly Competitive Economy
Singapore is a global financial centre with political stability and a pro-business environment with excellent infrastructure, international connectivity and a highly-skilled labour force.
Flexibility
A VCC may freely redeem its shares (without the requirement for solvency tests and corporate resolutions) and pay dividends using its net assets/capital, thereby providing flexibility in the distribution and return of capital.
Confidentiality
Subject to adhering to certain regulatory requirements, the register of members of a VCC is not required to be open for inspection by the public. Financial statements are also not publicly available.
Easier to Meet the Needs of Different Investors
Apart from the Singapore Financial Reporting Standards, a VCC is permitted to prepare its financial statements using international accounting standards such as the International Financial Reporting Standards and the US Generally Accepted Accounting Principles. This allows for greater flexibility to serve the needs of global investors.
Cost Efficiencies
The umbrella structure creates economies of scale as sub-funds can share the same board of directors and common service providers and consolidate some administrative functions.
Easier to Meet the Conditions for Tax Exemption under Section 13U and 13O of the Income Tax Act
The tax incentive conditions and the economic commitments under both incentive schemes will be applied to the umbrella VCC rather than to the individual sub-funds.
Different Strategies Under One Roof
Fund managers are able to adopt open-ended and closed-ended investment strategies for different sub-funds within a single VCC entity.
Bringing integrated solutions across eight service offerings.
Here's how we can help.
Pre-Launch
Post-Launch
Pre-Launch
Complete solutions to get you started.
- Preparation of the Fund's Documents
- Incorporation of the Fund
- Tax Incentive Application for the Fund
- Setting up Bank Account for the Fund
Post-Launch
Access our expertise at every stage.
- Fund Administration
- Audit
- Annual Corporate Tax Filing
- Annual Statutory FATCA and CRS Reporting
- Routine Corporate Secretarial Services
- Risk Advisory
- Valuation
- Liquidation
