What is a VCC?
- A new corporate structure for investment funds constituted under the Variable Capital Companies Act effective from 14 January 2020.
- Facilitates domiciliation of investment funds in Singapore across traditional and alternative fund vehicles for both open- and closed-ended funds.
- Foreign corporate entities which are set up as funds could also be inward re-domiciled as VCCs.
VCCs can be used for:
- Private equity funds
- Real estate funds
- Hedge funds
- Venture capital
- Multi-family offices
- Pooling and investment vehicles
The key features of a VCC
- Cost efficiency and structure: The VCC can be set up as either a stand-alone VCC or as an umbrella VCC with sub-funds. There are cost efficiencies from using common service providers across the umbrella and its sub-funds for fund managers that choose to structure their funds as umbrella VCCs.
- Segregation of assets and liabilities: Under the umbrella VCC structure, the umbrella VCC comprising of its sub-funds constitutes as one legal entity. Fund managers are able to segregate its assets into different sub-funds held within the same legal entity and then use each subfund to invest and directly hold a portfolio of different investments. As the assets and liabilities of each sub-fund are separated from each other, liabilities of a subfund under an umbrella VCC can only be discharged from its assets and not out of the assets of the other sub-funds.
- Flexibility: It provides the flexibility in the issuance and redemption of its shares at net asset value as well as the option to pay dividends out of its capital.
- Tax incentives: Eligible for tax exemption schemes which are available to funds under Singapore Resident Fund (SRC) scheme and Enhanced Tier Fund (ETF) scheme for specified income from designated investments where qualifying conditions are met.
- Confidentiality: The share registry and audited accounts are not made public, thereby providing a certain degree of privacy.
How can Ocorian help?
We provide a one stop service which includes:
- Fund administration
- Corporate services
- Incorporation of the VCC
- Corporate secretarial/ directorships
- Registered office
- Accounting services
- FATCA/CRS compliance
- GST calculation and filing
- AML/CFT services required on investors
- Advice and guidance from our local and global experts