What is the Variable Capital Company (VCC) in Singapore – Piloto Asia’s Professional Consultant Explains

Singapore enjoys a strong reputation for its fund management industry. And the Singapore government is working hard to further consolidate its status as an Asian financial hub. It is doing so by attracting more hedge funds to set up its bases in the country.

The Singapore government passed the Variable Capital Company (VCC) Act on 1 October 2018. And it officially came into effect on 14 January 2020 and it has turned out to be a revolutionary move in Singapore’s asset and wealth management industry.

Piloto Asia is a business firm in Singapore that is offering a full range of corporate services to help corporates do their businesses in Singapore. Raymond Chan is one of the co-founders & VP of business development and sales in Pilota Asia.

Raymond Chan has thrown his light on the subject of VCC Singapore to make everyone understand it. He explains VCC is a new corporate structure that facilitates both investors and fund managers to enjoy numerous benefits in their company structure.

Currently, the prevalence of VCC has grown in Singapore as the government is making efforts to establish itself as a powerful Asian financial hub. It has got a golden opportunity especially when Hong Kong is going through a complete political chaos at the very moment.

Chan shares that the incorporation of a VCC corporate framework in Singapore carries many benefits. In the VCC structure, it is possible to issue and redeem shares without the prior approval of shareholders.

The VCC fund structure gives an option to embrace umbrella structure and it helps in substantial cost savings. Under this, VCCs don’t need to make their information public. Thus, it offers full privacy and anonymity to beneficiaries.

Piloto Asia’s professional consultant has added that the VCC structure helps in the segregation of assets and liabilities in sub-funds. Besides, there is also a facility to get a good amount of subsidy with a VCC grant.

Raymond Chan considers the Variable Capital Company in Singapore as an innovative structure. It has strengthened the roots of Singapore as a leader in the financial world.

Apart from offering jurisdiction for investors and fund managers from across the globe. Piloto Asia is helping businesses incorporate a VCC structure to enjoy many benefits including significant tax advantages in Singapore.

Piloto Asia provides one-stop corporate secretarial services for businesses in Singapore to effectively help them manage their funding activities and grow seamlessly. By following some requirements of VCC, any business can easily incorporate this corporate funding structure.

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