Variable Capital Company FAQs

      Singapore introduced an alternative fund framework, Variable Capital Company (VCC), to encourage more funds to be domiciled in Singapore and enhance the jurisdiction’s value as an international fund management centre. The VCC came into operation in Singapore on 14 January 2020 and it allows the set up of collective investment schemes, whether open-end or closed-end. The VCC provides an alternative to Singapore’s existing structures, namely, unit trusts, limited partnerships, limited liability partnerships and companies.

      What is a Variable Capital Company (“VCC”)?Atoms / Icons / plusExpand

      The Variable Capital Company (VCC) is a new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on 14 Jan 2020. The VCC will complement the existing suite of investment fund structures available in Singapore.

      Please see the article below written by our team for more Variable Capital Company FAQs:

      Singapore’s new fund structure – requirements for the Variable Capital Company (VCC)

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      What types of funds can be setup as a Variable Capital Company (“VCC”)?Atoms / Icons / plusExpand

      The Variable Capital Company (VCC) allows set up of collective investment schemes, whether open-end or closed-end, whether retail or non-retail.

      Please see the article below written by our team for more details:

      Singapore’s new fund structure – requirements for the Variable Capital Company (VCC)

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      What is the difference between Variable Capital Company (“VCC”) and a standard Singapore Incorporated Company?Atoms / Icons / plusExpand

      There are many differences however, the most significant is that capital of VCC will always be equal to its net assets therefore providing flexibility in the distribution and reduction of capital. VCCs may issue shares and redeem fully-paid (and not unpaid) shares without the need for shareholders’ approval and no solvency tests are needed. This facilitates seamless movement of capital and enhances the efficiency of an investment fund structured as a VCC.

      Please see the article below written by our team for more details:

      Singapore’s new fund structure – requirements for the Variable Capital Company (VCC)

      Read more
      Can anyone setup a Variable Capital Company (“VCC”)?Atoms / Icons / plusExpand

      No – a VCC must have a MAS licensed, registered, or exempted fund manager to manage the assets that comprises of the VCC. Please see the link to our article and infographic which gives the detailed requirements and differentiation between the various types of fund management regime in Singapore.

      How to set up a Singapore Fund Management Company (FMC)

      Singapore Fund Management Company – Inception to Ongoing Fund Management Compliance

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