Variable Capital Companies (VCC)

In January 2020, Singapore launched the Variable Capital Companies (VCC) framework, which establishes the VCC as a new corporate structure that can be used for a wide range of investment funds under which several collective investment schemes (whether open-end or closed-end) may be gathered under the umbrella of a single corporate entity and yet remain ring-fenced from each other. 

Funds and sub-funds of VCCs may be authorised schemes or restricted schemes. Units in authorised schemes may be offered to the public, while units in restricted schemes may only be offered to institutional and accredited investors. 

A VCC also enables investors to obtain residency rights in Singapore by way of acquiring an Employment Pass and may be a springboard to PR in the future.

• A VCC must be managed by a Permissible Fund Manager, regulated by the Monetary Authority of Singapore (MAS).
• A VCC has a separate legal personality from the directors.
• A VCC can be set up as a single standalone/non-umbrella fund or as an umbrella fund with one or more sub-funds and each sub-fund’s assets and liabilities from segregated from the other. 
• A VCC will not be required to disclose its register of members to the public.
• •A VCC can pay dividends out of capital, and not only out of profits.