Extension of the Singapore Variable Capital Companies Grant Scheme (VCCGS) has been saved
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Extension of the Singapore Variable Capital Companies Grant Scheme (VCCGS)
The VCCGS, first introduced on 15 January 2020 for a period of three years till 15 January 2023, was intended to promote the adoption of Variable Capital Companies (VCCs) as a fund vehicle in Singapore. The Monetary Authority of Singapore (MAS) has extended the validity period of the VCCGS for a period of two years from 16 January 2023 to 15 January 2025 (both dates inclusive). The extended VCCGS, now referred as the Extended VCCGS, seeks to build on the momentum and continue to broaden VCC adoption and support more fund managers in setting up their first VCC.
Under the Extended VCCGS, the Financial Sector Development Fund (FSDF) will co-fund 30% of qualifying expenses paid to Singapore-based service providers for qualifying work performed in Singapore in relation to the incorporation or registration of a VCC, up to a maximum grant cap of SG$30,000 per application. This is a reduction from the previous scheme co-funding percentage of 70% which was capped at SG$150,000.
Applicant and grant eligibility
Applicants should be first-time qualifying fund managers who does not have previously incorporated or successfully re-domiciled a VCC, and should not have previously applied for the VCCGS. The grant is applicable only to one VCC of that qualifying fund manager that has been incorporated or successfully re-domiciled, subject to other conditions.
Minimum operational period
A VCC which has been awarded a grant under the Extended VCCGS is required to remain operational for at least one year from the date of incorporation or registration as specified in the Notice of Incorporation or Notice of Transfer of Registration issued by the Accounting and Corporate Regulatory Authority.
Qualifying expenses
The table below sets out the qualifying expenses that may be claimed (on a reimbursement basis) under the Extended VCCGS.
| Category | Items that qualify for funding |
|---|---|
| Legal services | - Fees charged by law firms for legal work in relation to the incorporation or registration of a VCC, including but not limited to, drafting of legal documents such as the VCC constitution, offering memorandum (or equivalent), subscription agreements, and investment management agreements - Work done in relation to the authorisation or notification of the VCC’s prospectus with MAS |
| Tax services | - Fees charged by tax advisors, fund administrators, corporate secretaries, law firms, or other Singapore-based service providers for tax advice connected with the incorporation or registration of a VCC, including but not limited to tax opinions on the incorporation or registration of a VCC, as well relating to any tax incentive applications |
| Administration and regulatory compliance services |
- Fees charged by fund administrators, corporate service providers, or company secretaries for work done including for incorporation or registration services in relation to the set-up of a VCC, appointment of directors, and all filings necessary for the incorporation or registration of the VCC - Fees charged for work done by regulatory consultants in relation to the authorisation or registration of the VCC with MAS, or setting up a compliance framework or any services listed above is also included |
For further information, please contact Michael Velten.
