Setting up a VCC in Singapore
The VCC is a game-changer for Singapore’s asset and wealth management industry with a wide spectrum of advantages and use cases within the financial investments industry.
The Singapore Variable Capital Company (VCC) legislation on 15 January 2020 represents the city’s latest investment fund innovation. The addition of VCC under Singapore’s suite of legal entities, which can be used as a vehicle for investment funds, is key to elevating Singapore’s value proposition in the regional asset management landscape.
The VCC is a corporate entity structure under which several collective investment schemes may be gathered under the umbrella of a single corporate entity. The enactment of a VCC funding structure has provided fund and asset managers with a flexible fund vehicle to not just house fund management activities and operations in Singapore, but to also “onshore” their funds in the country. The flexibility of the VCC allows it to be used in across different fund strategies, investor classes and asset classes.
The VCC was introduced by the Monetary Authority of Singapore (MAS) as a solution to the many problems found in limited partnerships as well as offshore funds. The VCC structure provides additional secrecy, privacy of investments and funds but also allow fund managers to reap the many tax benefits that Singapore provides.
As one of 18 fund managers that participated in the VCC Pilot Programme demonstrating the viability of the VCC framework across diverse use cases, Tembusu Partners is able to support fund managers, family offices and investors looking to set up a Singapore-based fund in a quick and cost-efficient manner.
Contact us today at kenneth@tembusupartners.com or jonathan@tembusupartners.com to find out more.