Launching a fund in one of Asia’s most trusted financial hubs, Singapore, comes with a powerful advantage: the Variable Capital Company (VCC). This flexible fund structure is quickly becoming the go-to for fund managers and investors who want a cost-efficient and globally respected base.
From competitive setup costs to investor-friendly regulations, the VCC ticks all the right boxes. But before you dive in, it pays to know exactly how much you’ll spend and how long it’ll take to set up.
In this guide, we’ll break down:
- The real costs of setting up a Singapore VCC
- The timelines from incorporation to launch
- The factors that can speed up or delay your fund
What Makes the Singapore VCC a Popular Fund Structure
The Variable Capital Company is a corporate structure for investment funds that can be:
- Standalone as a single fund
- Umbrella with multiple sub-funds, each with segregated assets and liabilities
Key Features:
- Segregated sub-funds – Multiple strategies or funds run independently under one umbrella entity
- Variable capital – Shares can be issued or redeemed without shareholder approval
- Privacy – Investor registers are not public
- Cost efficiency – Lower launch costs compared to Cayman SPCs or Luxembourg SICAVs
Cost Advantage vs. Global Alternatives
When compared to global alternatives, Singapore offers a clear cost advantage. Incorporation, legal, and regulatory fees often start at around S$40,000 — significantly lower than what fund managers might expect in North American, European, or offshore domiciles.
Beyond cost savings, Singapore also provides the benefits of a stable banking environment, clear guidance from the Monetary Authority of Singapore (MAS), and a competitive tax framework that makes it an attractive jurisdiction for fund structures like the VCC.
This appeal has translated into rapid adoption: in just four years, the VCC regime has grown to more than 1,200 VCCs and over 2,600 sub-funds registered as of December 2024, according to MAS.
Who can set up a VCC?
Only certain fund managers can establish a VCC:
- Must be licensed or exempt under MAS’ fund management regime
- Includes Capital Markets Services (CMS) licence holders or certain exempt financial institutions
Why this matters:
By ensuring every VCC is overseen by a regulated manager, the framework gives investors confidence in governance and compliance — while offering managers, both local and international, a flexible and globally recognised structure for single-strategy funds or multi-sub-fund umbrellas.
Basic Requirements to Set Up a Singapore VCC
- Licensed fund manager – Hold a CMS licence or qualify as an exempt financial institution.
- Resident director – At least one director must be ordinarily resident in Singapore.
- Company secretary – Must be a qualified individual based in Singapore.
- Registered office – Local address for official correspondence.
- AML/CFT compliance agent – Engage an eligible financial institution for due diligence duties.
Breakdown of Singapore VCC Setup Costs
Statutory fees (ACRA):
|
Fee Type |
Amount (S$) |
|
Name application |
$15 |
|
Incorporation fee |
$8,000 |
|
Sub-fund registration |
$400 per sub fund |
|
Annual return (VCC) |
$1,600/year |
Typical professional and operating costs:
|
Fee Type |
Factors |
Amount (S$) |
|
Legal documentation |
Fund strategy, complexity and stature of law firm |
$25,000-$50,000 |
|
Fund Administration (charged per sub-fund) |
Frequency of NAV calculation, no. of investments, capital calls, distributions and LPs |
$15,000-$30,000 |
|
Audit (charged per sub-fund) |
Asset mix, jurisdiction of assets and complexity of accounts |
$10,000-$30,000 |
|
Valuation (optional, charged per asset) |
Asset type, jurisdiction of asset, ease of assessing asset value |
$5,000-$15,000 |
Approximate budget:
A lean Private Market strategy (Venture Capital, Private Equity or Real Estate) VCC with a one sub-fund often costs S$ 50,000–125,000 to launch, with annual operating costs from S$ 40,000 – 100,000+, depending on complexity. This is if you have your own Capital Markets Service (CMS) License for Fund Management.
The Monetary Authority of Singapore (MAS) has been instrumental in shaping this framework to meet international standards while staying competitive. For solo GPs or emerging fund managers looking to keep setup costs efficient, our Nova, Fund in a Box solution offers a streamlined, cost-effective path to launch.
Singapore VCC Setup Timeline from Start to Launch
While timelines vary by complexity, most VCC launches follow a precise sequence from name approval to bank account opening.
Typical sequence:
- Name application: same day to 2 days (longer if referred)
- Incorporation & registration: 14–60 working days post-submission (occasionally within a week)
- Bank Opening: 1–4 weeks depending on banking providers
Weeks 1–2 – Appoint service providers, finalise investment mandate, prepare constitution & offering memorandum
Weeks 3–4 – File incorporation with ACRA, obtain MAS approvals, finalise memorandum and LP documents
Weeks 5–6 – Open bank accounts, execute legal agreements, onboard LPs and KYC, set up accounting & investor portals
Complex cases – Cross-border or foreign investor onboarding can extend the process to 8–10 weeks
Thinking about launching your own VCC but unsure of the real cost? Schedule a call with our expert and get a tailored cost breakdown.
Factors that affect Cost and Timelines
Several factors determine the total Singapore VCC cost and launch speed:
Regulatory Approvals
After submission of the VCC incorporation, ACRA’s approval for a VCC can take anywhere from a few days to around 60 days, and longer in more complex cases.
Fund Structure and Complexity
The number of sub-funds, investment strategies, and asset classes directly affects setup costs. More complex structures require additional legal documentation and tax planning.
Bank Account Opening
For the traditional local banks, directors must visit a branch in person, present required documents, and provide wet-ink signatures. Without a pre-existing relationship, the process takes about four weeks.
In contrast, digital banks such as Aspire offer a fully online onboarding process, with accounts typically opened within one to two weeks.
Compliance Fees
Singapore’s VCC framework demands compliance with the Variable Capital Companies Act, AML (anti-money laundering), CFT (countering financing of terrorism), FATCA (foreign account tax compliance act) and CRS (common reporting standards) regulations. Compliance fees can range widely depending on the firms you engage.
Fund Administration Services
Hiring a good quality fund administrator to manage investor onboarding, KYC, capital calls, distributions, NAV calculations, investor reporting, and regulatory filings adds to your operating costs, but it ensures smooth compliance and investor confidence.
Tax Advisory
Engaging tax advisors familiar with Singapore’s tax incentives, such as the Enhanced Tier Fund (ETF) scheme, can help optimise your fund’s tax position but will add to both initial and ongoing costs.
Tax guidance is required depending on where LPs are domiciled and where investments will be made. In some cases, exemptions like 13O or 13U can be applied for, provided the minimum eligibility criteria are met. Planning to meet these requirements can result in significant tax savings.
Licensing and Regulatory Approvals
Every VCC must appoint a Singapore-based Capital Markets Services (CMS) licensed fund management company, as setting up a VCC without a licensed entity in Singapore is not permitted. If you plan to secure your own CMS licence, expect the process to take anywhere from 6 to 18 months, depending on the licence type.
Final Thoughts
The Singapore VCC is a powerful tool for fund managers who want flexibility, investor confidence, and global credibility, but only if the launch is strategically planned and cost-managed.
Knowing your Singapore VCC cost in advance and mapping out your timeline means fewer delays, smoother investor onboarding, and a structure that scales with your goals.
Remember: a well-planned VCC launch isn’t just about meeting MAS requirements. It’s about creating a structure that scales with your ambitions and delivers value for years to come.
Don’t just launch a VCC–launch it right. Book a call with us or get in touch with us at info@auptimate.com, and one of our experts will be more than happy to help you.
