Variable Capital Company (VCC) FAQ

 

What is a Variable Capital Company (“VCC”)?

The Variable Capital Company (VCC) is a new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on 14 Jan 2020. The VCC will complement the existing suite of investment fund structures available in Singapore.

Please see the article below written by our team for more Variable Capital Company FAQ :

https://www.argusglobal.co/requirements-of-vcc/

What types of funds can be setup as a Variable Capital Company (“VCC”)?

The Variable Capital Company (VCC) allows set up of collective investment schemes, whether open-end or closed-end, whether retail or non-retail.

Please see the article below written by our team for more details:

https://www.argusglobal.co/requirements-of-vcc/

What is the difference between Variable Capital Company (“VCC”) and a standard Singapore Incorporated Company?

There are many differences however, an important one to note is Capital of VCC will always be equal to its net assets therefore providing flexibility in the distribution and reduction of capital. VCCs may issue shares and redeem fully-paid (and not unpaid) shares without the need for shareholders’ approval and no solvency tests are needed. This facilitates seamless movement of capital and enhances the efficiency of an investment fund structured as a VCC.

Please see the article below written by our team for more details:

https://www.argusglobal.co/requirements-of-vcc/

Can anyone setup a Variable Capital Company (“VCC”)?

The short answer is No. VCC must have a MAS licensed, registered, or exempted fund manager to manage the assets that comprises of the VCC. Please see the link to our article and infographic which gives the detailed requirements and differentiation between the various types of fund management regime in Singapore.

https://www.argusglobal.co/how-to-setup-singapore-fund-management-company/

https://www.argusglobal.co/setup-singapore-fund-management-company/

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