A New Financial Stage - Singapore's Variable Capital Company (VCC)
A deep dive into Singapore's latest financial innovation
WHAT IS A VCC?
The Singapore VCC (Variable Capital Company) is effectively an umbrella fund structure, which is looking to combine the benefits of traditional fund vehicles (Cayman, SICAV, Private Unit Trusts etc.) to make Singapore a hub for companies as well as wealthy individuals. Among others, the set up of a Singapore VCC typically requires the engagement of a Singapore licensed asset manager, which acts as provider of governance and management; and can act as a coordinator for the setup of VCCs. As DAS Family Office is a CMS licensed asset manager by MAS, we're very active in the set up and management of VCCs and can help you with all aspects of setting up and managing the same.
Stand-alone or Umbrella structure with multiple sub funds
Segregation of assets between sub-funds giving customers greater flexibility in which aspects to subscribe to.
Potential vehicle for Real Estate and Private Equity funds
Re-domicile foreign corporate fund structures in Singapore
Apart from the fact that MAS (The Monetary Authority of Singapore) may grants these vehicles tax exemption (13O/13U) subject to certain criteria, there's no public register of the investors in a fund, which effectively makes additional add on structures like trusts etc. more or less redundant. The Singapore government also provides grants for the set up of structure until March 2023.