The Variable Capital Company (VCC) is a much awaited new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on 14 January 2020. It is highly flexible and can accommodate the creation of sub-funds with either open-ended or closed-ended fund strategies for retail and non-retail funds. The introduction of VCC into the asset management market will further augment Singapore as a global financial centre.
Greater flexibility in the issuance and redemption of shares, and payment of dividends out of capital; giving fund managers flexibility to meet dividend payment obligations.
Enhanced safeguards with the segregation of assets and liabilities in each sub-fund.
Improved operational and tax efficiency.
Register of members and financial statements need not be made public.
The key requirements are
As your Trusted Specialist, we help you build a strong governance framework and ensure you remain compliant. We advise and provide guidance to help you set up your VCC, ensure annual compliance, manage share-related transactions and liaise with ACRA on the relevant filings.