Variable Capital Companies (VCC)
A Variable Capital Company, or VCC, is a business that specialises in investments. Specifically, a VCC employs a fund manager to pool investor funds together to invest in various assets for higher returns.
Variable Capital Companies are meant to reduce the costs of for investors. It can be formed as a single standalone fund or as an umbrella fund with two or more sub-funds, each holding different assets. VCCs are also exempt from income tax, which further entices investors to participate in the mutual fund. At the same time, VCCs are meant to optimise investor funds to achieve the best return on investment for the mutual fund as a whole.
The 2 Main types of VCCs in Singapore are public VCCs and private VCCs.
The VCC capital must always be equal to its net assets. It must have a Singapore-based licensed or regulated fund manager (unless an exemption has been obtained from the relevant authorities). The VCC must have its office registered in Singapore and must appoint a Singapore-based company secretary
Let us know if you are interested in setting up this investment structure instead of a PIC or family office, and we will be ready to advise.