The Singapore Variable Capital Companies Act, which went into effect in 2020, provides for the variable capital company (VCC). This is a new corporate form for the creation of investment funds, but it can also be used for wealth management purposes.
Below, our company registration agents explain how to open a VCC and its main features. If you want to set up a company in Singapore in the form of a variable capital company, you can rely on our specialists.
Steps to open a variable capital company in Singapore
The company formation procedure for this type of company in Singapore is the same as for any entity, as it respects the Company Act. For this purpose, investors must complete the following steps:
- apply for the reservation of a trading name;
- file the registration papers with ACRA;
- create a business profile with ACRA in order to obtain Unique Entity Number (UEN).
Because of its special profile, the Singapore VCC company will take longer to register. Also, when used to create investment funds in the city-state, registration with the Monetary Authority is also required.
You can rely on our Singapore company formation advisors for support in registering this new type of business form.
Documents required to open a VCC company
Setting up a company in Singapore implies drafting various documents. In the case of a VCC company, the following are required:
- information about its shareholders, such as their residence, ID papers, nationality, and phone numbers;
- information on subscribers and the manager of the fund;
the address of the registered office; - the company’s working hours;
- the constitutive documents;
- details about the end and duration of the financial year.
You can rely on our consultants for support in drafting the necessary paperwork for the creation of a variable capital company in Singapore. We can also assist if you want to open a company in Singapore for other purposes.
Features of the VCC company in Singapore
The variable capital company has specific characteristics. Considering this business form is already used in many European countries, Singapore has used their examples when enabling the new law. According to it, here are some highlights of this business form:
- it must have a local registered address;
- in terms of management, the minimum number of directors is one, who must be a Singapore resident, however, a higher number may be required based on the type of fund it is used for;
- when one director is appointed, he or she, must be a qualified fund manager;
- there is no minimum share capital required for the company itself;
- it must also have a secretary and an auditor.
Apart from these characteristics, if you want to set up a VCC company in Singapore, you must respect the specific investment fund legislation applicable. Our agents can advise in this sense.
What to consider when opening a Singapore variable capital company
First of all, the variable capital company needs authorization from the Monetary Authority of Singapore before starting its operations. Secondly, it must adhere to local or foreign investment funds rules, depending on where it will operate. It can also access various tax incentives.
The VCC has proved quite successful, as:
- since the enabling of the Variable Capital Companies Act, there were 969 newly registered and re-domiciled VCC companies in Singapore;
- they represent 1,995 umbrella and stand-alone funds;
- in 2024 and 2025, new amendments are expected to improve the current law, some of them targeting the possibility for investors to invest directly in the funds created using it.
If you want to open a variable capital company in Singapore and need assistance, do not hesitate to contact our local representatives.