What You Should Know about the Variable Capital Company?

The Variable Capital Company (VCC) is a highly beneficial form of business organization preferred by small enterprises. VCC offers advantageous features in terms of taxation, liability protection, and ease of establishment and dissolution, surpassing sole proprietorship and partnership. Furthermore, VCCs are highly efficient in administration and accounting, making them an ideal choice for small businesses.

What You Should Know about the Variable Capital Company?

The Variable Capital Company (VCC) is a highly beneficial form of business organization preferred by small enterprises. VCC offers advantageous features in terms of taxation, liability protection, and ease of establishment and dissolution, surpassing sole proprietorship and partnership. Furthermore, VCCs are highly efficient in administration and accounting, making them an ideal choice for small businesses.

How Variable Capital Company Established in Singapore?

In 2016, the Investment Management Association of Singapore proposed a new flexible investment fund structure. In March 2017, the Monetary Authority of Singapore issued a public consultation to get feedback on elements of this corporate structure, which was later approved.

The Ministry of Finance, in its 2018 Singapore Budget Statement, declared that Venture Capital Companies (VCCs) would be treated as separate entities for taxation purposes. On 10 September 2018, the first draft of the VCC bill was presented to the parliament. The bill was passed on 1 October 2018. The VCC Act will come into effect in 2019; however, no date has yet been announced.

The framework incorporates several features of open-ended investment companies already available in jurisdictions such as Luxembourg, Ireland, the United Kingdom, and the United States. Initially known as Open-End Investment Company (OEIC), the firm has now rebranded as Singapore Variable Capital Company (S-VACC). The name was later changed to Variable Capital Company.

Key Aspects of Variable Capital Company

The recently introduced framework has piqued the interest of the fund management sector due to its distinctive attributes, which will provide operational adaptability to fund managers based in Singapore. This is primarily due to the incorporation of a variable capital company administration and accounting system, which will allow for greater flexibility in managing funds. The industry professionals have taken note of these advantages and are keeping a watchful eye on this exciting development.
  • The administration and accounting of variable capital company (VCC) allow it to cater to both traditional and alternative funds, making it accessible to both retail and restricted class investors alike
  • Shares can be redeemed without shareholders' approval, and dividends are paid from capital. This offers greater flexibility than corporations
  • It must maintain up-to-date shareholder registers and disclose information to the regulatory authorities upon request
  • The fund must appoint a management company licensed or registered by MAS, or an exempt financial institution in Singapore. To ensure that the vehicle is not misused for unlawful purposes, it must be registered with the state
  • Variable capital company administration and accounting can be performed using various accounting standards by venture capital firms that offer their services to restricted investors such as accredited investors. These standards may include US GAAP, ASC Standard, or IFRS

Your vision, our mission.
Let's discuss

Contact Us

Singapore Variable Capital Company

To ensure that your fund management company is properly licensed, and make sure it is registered with the Monetary Authority of Singapore (MAS).

Demonstrate proof of substance via

  • Singapore Registered Office
  • Singapore Resident Company Secretary and Auditor
  • 1 Resident Director

Maintain an updated shareholder register.

A Member Firm of Andersen Global
  • 170+ Countries
  • 390+ Locations
  • 13,000+ Professionals
  • 1800 + Global Partners
Contact Us
Need Assistance?
Get In Touch

We appreciate your interest in IMC and are eager to address your needs.

To ensure we address your needs accurately and promptly, please fill out this form. This will help us in identifying and connecting you with the appropriate team of experts in our organization.

We take pride in our responsiveness and aim to get back to you within a span of 1-2 business days. Your journey towards solutions starts here.

Companies we have worked with