Crowe Singapore VCC Solutions

VCC Solutions

Bringing integrated solutions across eight service offerings,
including Fund Administration, Regulatory and Tax, to meet your Variable Capital Company's requirements.

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What is a Variable Capital Company?

The Variable Capital Company (VCC) is a new corporate structure for investment funds constituted under the Variable Capital Companies Act. The VCC allows for several collective investment schemes to be gathered under the umbrella of a single corporate entity with segregated assets and liabilities.  It is a flexible structure that can accommodate the creation of sub-funds with either open or close-ended strategies. The VCC will complement the existing structures available in Singapore for investment funds which are companies, unit trusts and limited partnerships.

Benefits of a VCC

  1. 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.
  2. 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. 
  3. 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.
  4. Reduced Tax Compliance Burden
    An umbrella VCC will only need to file a single corporate income tax return regardless of the number of sub funds the umbrella VCC has.
  5. 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.
  6. 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.

  7. Easier to Meet the Conditions for Tax Exemption under Section 13R and 13X 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.

  8. 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.

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

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 

Connect with us

Tony Tan Crowe Singapore
Tony Tan
Senior Partner
Outsourcing and Fund Administration
Sivakumar Saravan Crowe Singapore
Sivakumar Saravan
Senior Partner
Tax and Corporate Services