
Knowledge Highlights 13 September 2023
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.
Applicant eligibility
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.
Grant eligibility
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:
Funding
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:
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.
Reference materials
The following materials are available on the MAS website www.mas.gov.sg: