The Variable Capital Company (VCC)

In further effort to augment the Fund Industry in Singapore, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) launched the Variable Capital Companies (VCC) framework on 15 January 2020.

Permissible Fund Managers1 will now be able to constitute investment funds as VCCs across both traditional and alternative strategies and as open-ended or close ended funds. Fund managers may incorporate new VCCs or re-domicile their existing investment funds with comparable structure by transferring their registration to Singapore as VCCs.

The VCC may also avail itself of the tax exemption schemes (sections S13R and S13X) available to funds managed by fund managers in Singapore under which “Specified Income” (including gains) derived by the fund from “Designated Investments” is exempt from Tax. All funds that qualify for any of the following tax exemption schemes as at 31 December 2024 (unless extended) may enjoy tax exemption for the life of the fund, subject to the funds continuing to meet the relevant conditions of each scheme.

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Key features of a VCC

• A VCC has a variable capital structure that provides flexibility in the issuance and redemption of its shares. It can also pay dividends out of capital, which gives fund managers flexibility to meet dividend payment obligations.
• A VCC can be set up as a single standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities. For fund managers that structure their funds as umbrella VCCs, there may be cost efficiencies from using common service providers across the umbrella and its sub-funds.
• A VCC can be used for both open-ended and closed-end fund strategies.
• Fund managers may incorporate new VCCs or re-domicile their existing overseas investment funds with comparable structures by transferring their registration to Singapore as VCCs. More details pertaining to the VCC framework can be found at www.mas.gov.sg

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Key requirements for a VCC

• VCCs must maintain a register of shareholders, which need not be made public. However, this register must be disclosed to public authorities upon request for regulatory, supervisory and law enforcement purposes. The VCC’s register must be maintained within Singapore at the VCC’s registered office.
• A VCC must appoint a secretary who must be resident in Singapore.
• An auditor has to be appointed to audit the VCC’s accounts on an annual basis.
• A VCC must appoint at least one director who is ordinarily resident in Singapore and at least one director (who may be the same person as the local resident director) who is a director or qualified representative of the fund manager of the VCC.
• GST is applicable at the sub-fund level of the VCC.
• MAS imposes AML/CFT requirements on VCCs. VCCs are allowed to delegate such responsibilities to financial institutions and may in turn be outsourced to other entities such as a fund administrator;

For a VCC Fund, NAV need not be calculated by an independent party. However, it should be noted that a LFMC or RFMC is expected under the Guidelines on Licensing, Registration and Conduct of Business for Fund Management Companies to ensure that assets under management are subject to independent valuation. In addition, for the VCC to avail itself of the tax exemptions under sections S13R and S13X, one of the requirements is to have a Singapore based fund administrator.

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Portcullis’ Experience with the VCC structure
A group of 18 Fund Manager participated in a VCC Pilot Program initiated by MAS and ACRA last September and Portcullis is proud to have been part of this Program having been appointed as both Fund Administrator and Secretary to a VCC Fund.

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Portcullis’ Services for the VCC structure
Please do not hesitate to contact us should you wish to explore the VCC structure.
Portcullis is well positioned to provide you a turn key solution which includes:

AML /CFT services relating to investors in the fundServe as your Registered office GST Remission calculation and submission

• Incorporation of the VCC structure
• Fund administration
• Serve as your Registered Filing Agent
• CRS and FATCA tax compliance
• Serve as your Company Secretary

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For more information, please contact

Mr Allard de Jong
Managing Director, Fund Administration
Tel: +65 6496 0428
Email: allard.dejong@portcullis.co

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可變動資本公司

新加坡為進一步致力於擴展其基金產業，新加坡金融管理局（「新加坡金管局」）及會計與企業管理局（「會計企業管理局」）於2020年1月15日推行可變動資本公司架構。

經認可的基金經理人1，現在能以傳統及備選兩種策略，並以開放式或封閉式基金的方式，將投資基金設為可變動資本公司。基金經理人可設立新的可變動資本公司，或以同等結構重新編組其既有的投資基金，向新加坡申辦轉登記為可變動資本公司。

適用於由新加坡基金經理人管理的基金的免稅計畫（S13R及S13X條），可變動資本公司亦可使其自身符合資格而適用，依免稅計畫的規定，基金來自「指定投資項目」所衍生的「特定收入」（包括利得）得予免稅。任何基金截至2024年12月31日（除非展期）符合下列任何免稅計畫資格者，得在基金存續期間享受免稅，惟仍以基金持續符合各項計畫的相關條件為前提。

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可變動資本公司的主要特性

• 可變動資本公司具有可變動資本結構，在其股份的發行及贖回上給予彈性。可變動資本公司亦得以其資本發放股利，使基金經理人在遵守股利發放義務上具備彈性。
• 可變動資本公司可設為單一型的單體基金，亦可設為擁有兩個或更多子基金的傘型基金，而各持有投資組合的資產與負債皆各自分開獨立。對於將基金建構為傘型可變動資本公司的基金經理人而言，因傘型基金及其子基金使用共同的服務供應商，所以可能產生成本效益。
• 可變動資本公司可使用於開放型及封閉型基金策略上。
• 基金經理人可設立新的可變動資本公司，或以同等結構重新編組其既有的海外投資基金，向新加坡申辦轉登記為可變動資本公司。可變動資本公司結構的更多詳細資料登載於：ww.mas.gov.sg

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可變動資本公司應遵守的主要規定

• 可變動資本公司必須留存一份股東名冊，該名冊無須公開。然而，在為管理、監督或執法的目的而要求時，該名冊必須向公家機關揭露。可變動資本公司股東名冊必須留存於其新加坡註冊辦公室內。
• 可變動資本公司必須任命一名新加坡居民的秘書。
• 可變動資本公司必須委任一位審計會計師，每年查核其帳目。
• 可變動資本公司必須任命至少一席經常居住於新加坡的董事，以及至少一席擔任可變動資本公司基金經理人董事或適格代表人的董事（可與上述當地居民董事同一人）。
• 商品服務稅適用於可變動資本公司的子基金層級。
• 新加坡金管局對可變動資本公司實施洗錢防制/遏止資助恐怖主義的法規。
• 可變動資本公司可將該些責任委外給金融機構，而亦得反受其他實體的委任成為基金管理人。

可變動資本公司基金的資產淨值，無須由一個獨立的他人予以計算。然而，應注意的是，依基金管理公司執照核發、註冊與業務營運準則的規定，執照基金管理公司或註冊基金管理公司應確保其管理的資產確實以獨立估值為準。此外，為使可變動資本公司有資格適用S13R及S13X條的免稅規定，其中一項規定就是委任新加坡的在地基金管理人。

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保得利在可變動資本公司結構方面的經驗
保得利有一群18名基金經理人參與新加坡金管局及會計企業管理局在去年九月倡導的可變動資本公司領航計畫（VCC Pilot Program），對於參與該計畫，並獲任命為可變動資本公司基金的基金管理人及秘書等事，保得利感到驕傲。

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保得利在可變動資本公司結構方面的服務
希望進一步探討可變動資本公司結構者，請洽詢本公司。保得利已備妥隨時提
供 貴公司全方位的解決方案，其中包括：

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希望獲得更多資訊者，請洽詢：

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Allard de Jong先生
董事，基金服务与行政
电话：+65 6496 0428
电邮：allard.dejong@portcullis.co