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Variable Capital Company (VCC) structure in Singapore

Variable Capital Company (VCC) structure in Singapore

The family office landscape is undergoing a significant transformation, with Singapore leading the way in this evolution. Through the introduction of the Variable Capital Company (VCC) framework, Singapore has emerged as a trailblazer in family office management.

In this article, we explore how VCC Singapore is redefining family office operations and why it has become the preferred choice for high-net-worth families seeking efficient and confidential wealth management solutions.

If you are planning to set up a fund, Singapore’s Variable Capital Company (VCC) structure offers one of the most flexible and efficient options available today.

Below reasons are why fund managers, family offices, and asset managers choose VCC structure:

1. Versatile Fund Types

The VCC is suitable for both open-end and closed-end fund types. Whether your strategy involves hedge funds, private equity, venture capital, or real estate investment, the VCC provides the flexibility to structure your fund in a way that aligns with your investment objectives and liquidity needs.

2. Umbrella Structure

VCCs can be set up as umbrella funds with multiple sub-funds, each with segregated assets and liabilities. This structure is particularly attractive for family offices managing diversified portfolios across various asset classes or beneficiaries. It enables operational streamlining, cost efficiencies, and the implementation of bespoke investment strategies, all within a single corporate entity.

3. Tax Efficiency

VCCs benefit from Singapore’s extensive network of tax treaties and may qualify for tax exemptions under the Enhanced Tier Fund and Singapore Resident Fund schemes. Capital gains, dividends, and interest income can discreetly enjoy tax exemptions, making the VCC structure not only operationally efficient but also highly tax-advantaged for eligible investors.

Singapore: Asia's Fund Management Hub

Singapore: Asia’s Fund Management Hub

With its robust regulatory environment, investor-friendly policies, and thriving financial ecosystem, Singapore is fast emerging as Asia’s leading fund management centre. The introduction of the VCC framework is a testament to the country’s commitment to innovation and excellence in financial services.

For family offices looking to enhance confidentiality, governance, and flexibility, or fund managers exploring new jurisdictions for fund setup or re-domiciliation, the VCC offers a compelling solution.

Ready to Set Up Your Fund?

At Finova Group, we help clients evaluate, structure, and launch VCCs tailored to their strategic needs. Whether you are a fund manager, private investor, or family office exploring your options, our experienced team is here to guide you through every step of the process.

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