Variable Capital Company

Singapore Variable Capital Company (VCC)

A Flexible and Scalable Fund Structure

The Singapore Variable Capital Company (VCC) is a corporate structure specifically designed for investment funds and asset managers. It provides a flexible framework for managing investment strategies, accommodating different investor groups and creating scalable fund platforms.

Key Benefits
Tax Efficiency

A VCC can access Singapore’s established fund tax framework and, where applicable, qualifying fund tax incentive schemes. This can provide an efficient structure for managing investments across different markets and asset classes, subject to applicable eligibility requirements and tax regulations.

Risk Segregation

An umbrella VCC can establish multiple sub-funds, with the assets and liabilities of each sub-fund legally segregated from those of other sub-funds. This helps ring-fence investment risks and allows different strategies to operate within a single VCC structure.

Enhanced Confidentiality

VCCs offer enhanced privacy compared with certain traditional corporate structures, as shareholder information is generally not publicly accessible in the same manner as an ordinary company. This is subject to applicable regulatory, tax, AML/CFT and beneficial ownership requirements.

Flexible Capital Structure

A VCC allows flexible issuance and redemption of shares, making it particularly suitable for open-ended investment funds. Different share classes can also be established to accommodate different investor rights and economic arrangements.

The information provided is for general informational purposes only and does not constitute legal, tax, investment or regulatory advice. Tax incentives and other benefits are subject to applicable eligibility requirements and prevailing laws and regulations.