VCC Grant

Financial Sector Development Fund has earlier this year prepared a variable capital company grant to defray the expenses in relation to Singapore-based services for the incorporation of a variable capital company.

The grant was a bid by Singapore to help local fund managers consider new vehicles that can help them attract investments. At the same time the grant seeks to attract foreign fund managers in domiciling here in Singapore.

To qualify for the grant,

  1. Applicants must submit their applications within three (3) months from the date on the notice of incorporation or notice of transfer of registration issued by ACRA.
  2. qualifying expenses must be paid to Singapore-based service providers for work done in Singapore in relation to the incorporation and registration of VCCs and their-sub funds (but may not claim co-funding under the grant scheme solely for registration of sub-funds).

The qualifying expenses below would be paid on a reimbursement basis, that is the expenses will first be borne upfront by the applicant.

Category Items that qualify for funding Funding Level (%)
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, subscription agreements, investment management

agreements[1]

•              Work done in relation to the authorisation or registration of the VCC with MAS[2]

Up to 70% co-funding of qualifying expenses listed below, capped at

$150,000 per VCC

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[3]
Fund administration or regulatory compliance services

 

•              Fees charged by fund administrators 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 relation to the authorisation or registration of the VCC with MAS[4] or setting up a compliance framework or any services listed above is also included

 

[1] Statutory fees, including all filing fees, are not covered.

[2] For the avoidance of doubt, work done in relation to the licensing of the Qualifying Fund Manager is not covered.

[3] The tax advice may also cover tax compliance matters as well as any opinions on the VCC’s eligibility for Singapore double tax treaties with other jurisdictions, as well as GST remission. Fees charged for liaising with IRAS or MAS on tax matters in relation to the incorporation or registration of a VCC will also qualify.

[4] For the avoidance of doubt, work done in relation to the licensing of the Qualifying Fund Manager is not covered.

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