Singapore VCC (SVCC)

Key Features

  • Singapore VCC is an entity incorporated as company under VCC Act of 2018 and is somewhat similar to Cayman PCC, Mauritius PCC, Luxembourg SICAV or Ireland ICAV.
  • SVCC is governed by Variable Capital Company Act of 2018 in Singapore to establish and manage various funds structures for collective investment schemes.
  • SVCC is established as a body corporate as a standalone entity or an umbrella entity with one or multiple sub-funds under it that can execute dedicated mandate of each fund with investment strategy unique to the fund.
  • All assets and liabilities of each fund are ringfenced from the VCC as well as other funds under same VCC (in case of umbrella VCC).
  • SVCC and funds can run full spectrum of investment strategies including alternative investments, VC, PE, traditional long only, long-short, thematic amongst others. These strategies can be run through both; open ended funds and closed ended funds.

Key Benefits

Singapore Jurisdiction

Singapore is one of the most prudent and regulated global financial centres with AAA credit rating, stable currency, strategic location, globally connected, world class socioeconomic infrastructure, best in class banking and asset management ecosystem accompanied by diverse workforce.

Cost Optimized

In case of umbrella VCC, costs are highly optimized through sharing of common architecture of investment manager, stakeholders, service providers to sub-funds if such is chosen.

Tax Exemption & Considerations

SVCC is eligible to apply for full corporate income tax exemption from income derived from eligible investments under sections 13O and/or 13X of Income Tax Act of Singapore. In addition, SVCC files corporate income tax returns at a VCC level and fund or funds (in case of umbrella VCC) are not required to file income tax returns of their own.

Open Architecture

SVCC can be formed as a stand-alone or an umbrella entity with one or multiple sub-funds. SVCC is allowed to issue and redeem shares to service subscriptions, redemption, dividends and other distributions.

Discretion & Confidentiality

SVCC register of members is kept fully confidential and is not open for access/inspection by public. Similarly, all financials of SVCC are kept confidential and are not available to anyone in public.

Financial Reporting Standards (FRS)

Generally, it is expected that SVCC will prepare its financials in compliance with Singapore Financial Reporting Standards (SFRS). However, it is also permitted by law to also prepare financials on the basis of internationally accepted accounting standards and principals such as US GAAP or IFRS or any other such standard.