Singapore Variable Capital Company (VCC)
Overview
Singapore's Variable Capital Company framework provides a purpose-built structure for investment funds, covering capital management, fund structuring and investment strategy.
Whether you are establishing a family investment vehicle, launching a fund or considering Singapore as a fund domicile, understanding the VCC is an important first step in choosing the right structure.
Understanding the VCC
Introduced in January 2020, the VCC is a corporate structure designed specifically for investment funds. It gives fund managers and investors an alternative to traditional fund structures and accommodates a wide range of strategies and arrangements.
A VCC can be set up as a standalone fund or as an umbrella structure with multiple sub-funds, each with its own investment strategy and portfolio.
Standalone VCC
A single fund built around one investment strategy or set of objectives.
Umbrella VCC
An overarching structure with multiple sub-funds, allowing different strategies or investor arrangements within one entity. Each sub-fund's assets and liabilities are segregated from those of the other sub-funds.
Key Features & Benefits
Flexible Capital Structure
Shares can be issued and redeemed flexibly, suiting funds that need adaptable capital arrangements. Different share classes can carry different investor rights and economic terms.
Segregated Sub-Funds
An umbrella VCC can hold multiple sub-funds in one structure, with each sub-fund's assets and liabilities kept separate.
Fund Tax Incentive Opportunities
Qualifying funds may access Singapore's fund tax incentive schemes, subject to eligibility conditions and ongoing requirements.
Shareholder Privacy
The VCC's register of shareholders is not publicly available, unlike some traditional corporate structures. Regulatory, tax reporting and beneficial ownership disclosure obligations still apply.
Why Singapore?
For individuals and families, Singapore offers stability, strong governance and a deep network of professional expertise.
Established Financial Centre
A broad ecosystem of banks, fund managers, fund administrators, auditors, legal advisers and other professional service providers.
Dedicated Regulatory Framework
The VCC operates under dedicated legislation designed for investment funds, giving a recognised structure for establishing and managing funds in Singapore.
Fund Tax Incentive Schemes
Singapore offers fund tax incentive schemes, including Sections 13O and 13U, for funds that meet the relevant conditions.
Choice of Fund Structures
Standalone and umbrella structures let fund sponsors establish a single fund or organise several sub-funds within one entity.
Sections 13O and 13U
Singapore's Fund Tax Incentive Schemes
Sections 13O and 13U may provide tax exemption on qualifying income from designated investments, subject to eligibility conditions and ongoing requirements. The requirements differ depending on whether the fund is managed by a single family office (SFO) or by a licensed fund manager (non-SFO).
How SBCI Can Help
Establishing a fund involves more than choosing a legal structure. It also means considering the investment strategy, fund arrangements, regulatory obligations and the professional support needed to run the fund.
SBCI works with an established network of professional service providers to help clients explore fund structuring options and introduce them to the relevant specialists. Our support may include:
Fund Structuring
Exploring suitable fund structures for your investment objectives and intended arrangements.
Professional Network
Introductions to legal, tax, corporate secretarial, fund administration and audit specialists.
Investment Management
Discussing our existing funds, a dedicated sub-fund or a separate investment mandate.
Ongoing Coordination
Working with you and your service providers on the operational and administrative aspects of your fund.
Exploring a Singapore VCC?
Whether you are setting up a family investment vehicle, structuring a fund or exploring Singapore's fund tax incentives, we can help you understand your options and take the first steps.