Understanding Singapore’s Variable Capital Companies

Singapore’s Variable Capital Companies (VCC) is a new, flexible legal entity structure for investment funds that confers a number of operational efficiencies and tax advantages for fund managers. The goal of the legislation is to encourage more managers, both Singaporean and global to incorporate and operate investment funds in Singapore. But the more significant effect is the industry’s favored fund domicile jurisdictions, namely the Cayman Islands, Mauritius, Luxembourg and Dublin, Ireland, now face competition from Singapore for domiciling funds.