Knowledge Highlights 18 January 2023
MAS extends Variable Capital Companies Grant Scheme
Knowledge Highlights 7 February 2023
The Monetary Authority of Singapore (“MAS”) has extended the Variable Capital Companies Grant Scheme (“VCCGS”) for two years from 16 January 2023 to 15 January 2025 (both dates inclusive) (“Extended VCCGS”).
Under the Extended VCCGS, applicants can seek co-funding for 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 variable capital company (“VCC”), up to a cap of S$30,000 per application.
The VCCGS, which was first introduced on 15 January 2020 for a period of three years until 15 January 2023, has catalysed the adoption of VCCs in Singapore. MAS said in a factsheet published on 13 January 2023 (“Factsheet”) that 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.
Applicants should be first-time qualifying fund managers that must not have previously incorporated or successfully re-domiciled a VCC and must not have previously applied for the VCCGS. Interested applicants can write to VCC-FSDF@mas.gov.sg to obtain the application forms.
The Extended VCCGS is available only to qualifying fund managers that have incorporated a VCC or successfully re-domiciled a foreign corporate entity to Singapore as a VCC between 16 January 2023 and 15 January 2025 (both dates inclusive) for the first time.
The following conditions apply:
- The set-up of the VCC cannot be simultaneously funded by other government grants or incentives with respect to the same set of qualifying costs and commitments.
- Each applicant may only apply for the Extended VCCGS for qualifying work performed in relation to one VCC that has been incorporated or successfully re-domiciled.
- Qualifying expenses must be paid to Singapore-based service providers for qualifying work performed in Singapore in relation to the incorporation and registration of the VCC and its sub- fund(s) (if any).
- A qualifying fund manager may not claim co-funding under the grant scheme solely for the registration of sub-fund(s) (without the accompanying incorporation or transfer of registration of a VCC). However, a qualifying fund manager may claim qualifying set-up costs incurred for the registration of sub-fund(s) as part of the set-up of an umbrella VCC.
- Applicants should formally submit their applications within three months from the date specified on the Notice of Incorporation issued by the Accounting and Corporate Regulatory Authority (“ACRA”) (for a newly incorporated VCC) or within three months from the date of ACRA’s approval of the VCC’s evidence of de-registration (for a foreign corporate entity re-domiciled to Singapore as a VCC).
The 30% co-funding is capped at S$30,000 per VCC, and applies to the following qualifying expenses, more details of which can be found in the Factsheet:
- legal services;
- tax services; and
- administration or regulatory compliance services.
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 registration date. If the VCC is wound up within the first year from its incorporation or registration, the qualifying fund manager is to inform MAS promptly and by no later than one week from the date of the application for the winding up or passing of resolution for a voluntary winding up of the VCC.
MAS reserves the right to claw back the grant awarded if the VCC is wound up within the first year from its incorporation or registration and/or if the qualifying fund manager fails to inform MAS of the winding up of the VCC within one week from the date of the winding up.
The following materials are available on the MAS website www.mas.gov.sg:
Knowledge Highlights 25 January 2023