Setting up a Singapore Variable Capital Company (VCC) - what are the benefits? - Waystone

      Setting up a Singapore Variable Capital Company (VCC) – what are the benefits?

      The Singapore Variable Capital Company (VCC) launched on 15 January, 2020 and as of 11 November 2020, over 163 VCCs have been registered with the Accounting and Corporate Regulatory Authority (ACRA).

      HOW TO SET UP A VCC

      Similar to the incorporation of a Singapore company, the setting up of a VCC is a straightforward procedure and is conducted online via the ACRA website. The process takes approximately two weeks to complete.

      1. Choose and register a VCC name
      2. Determine the type – VCC can be set up as a single standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities
      3. Appoint directors, company secretary, auditor, fund manager and other key persons
      4. Provide a registered office address and a constitution.

      FUTURE FEATURES OF THE VCC

      The Monetary Authority of Singapore (MAS) is currently looking at some additional features, designed to enhance the structure and provide further flexibility in response to the evolving requirements of fund managers and investors.

      1. Amendments to Existing Legislation

      One key update, currently being considered by MAS and based on industry feedback, is to amend the existing legislation to widen the scope of fund managers allowed to use the VCC structure. Currently, single family offices, which are unlicensed, are not able to manage a VCC.

      2. Converting Existing Singapore Funds to VCCs

      Another feature being explored by MAS is the feasibility of allowing fund managers who are interested, to convert existing Singapore funds, structured as companies or unit trusts, to VCCs. There are currently no statutory provisions for this conversion.

      How can Waystone help?

      As the worldwide leader in fund governance, risk + compliance, Waystone has a team of professionals available to examine all the options open to managers across multiple jurisdictions, including the Asia-Pacific region.

      To find out more, please contact your usual Waystone representative to learn more about our compliance solutions.

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