DISCLAIMER: This post was last modified on 13 January 2023. Some information in this article may not be updated.

Two days prior to its original expiration on 13 January 2023, the Variable Capital Companies (VCC) Grant Scheme was extended for another two years to 15 January 2025.

The MAS introduced this scheme in 2020, which awards Singapore-based asset managers and family offices funding up to 30% of qualifying expenses, including those concurred for legal, administration, tax and compliance solutions. Previously, the funding was at 70%, the only main difference between the original and extended grant. The Financial Sector Development provides the funding, capped at S$30,000 per VCC. Since the scheme was launched in 2020 over 700 VCCs have been successfully set up or have re-domiciled to the city-state.

Under the Extended VCCGC, only first-time qualifying managers can apply, which means those who have previously set up the structure or re-domiciled an entity as such are restricted from applying for the grant. First-time applicants must obtain a Notice of Incorporation or a Notice of Transfer of Registration from the Accounting and Corporate Regulatory Authority dated between 16 January 2023 and 15 January 2025 – the due date of the extension.

Other things to keep in mind when applying for the extended VCCGS:

• The VCC must not be simultaneously funded under other government grants
• The grant is applicable only to qualifying work related to one successfully incorporated or re-domiciled VCC
• Qualifying expenses for the funds and sub-funds (legal, tax, compliance services) must be paid to Singapore-based service providers
• The MAS does not allow a qualifying fund manager to claim co-funding under the Extended VCCGC for sub-fund registration unless it is part of an umbrella VCC
• For new VCCs, managers must submit their applications within three months from the date stated on the ACRA-issued Notice of Incorporation
• For foreign entities re-domiciled as VCC, managers must submit the Notice of Transfer of Registration within three months

Managers must also note that the MAS reserves the right to retrieve any grant given to a VCC if it closes in less than a year after its registration. The authorities require VCCs to be operational for at least one year in order to benefit from the scheme fully. VCCs which would be granted the award under the extended VCCGC and declare closure less than a year after it is registered must inform the MAS of the development within one week. The registration date refers to the date of incorporation stated on the Notice of Incorporation or Notice of Transfer Registration from the ACRA.

Here is a quick overview of setting up a VCC:

1. Introduction by a registered agent
2. Registering a VCC name
3. Determining the VCC type
4. Appointing directors, company secretary and other key officers
5. Registering office address and constitution
6. Incorporating a new VCC
7. Registering sub-funds for an umbrella VCC
8. VCC filing fees

To apply, managers can request the application form by emailing VCC-FSDF@mas.gov.sg.

Bolder Group can also assist in VCC incorporation or the application for the grant scheme. Bolder Fund Services Singapore is among the market leaders in the set-up of VCC. Supported by a strong team with relevant experience, Bolder is highly approachable and will be able to help managers navigate through the process of setting up and applying for the grant.

Please get in touch with info@boldergroup.com or our Bolder-Singapore representatives.

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.