Showing posts from November, 2020

Variable Capital Company (VCC)

Recently, there is a growing demand for ONSHORE fund structures. Funds are moving away from traditional OFFSHORE tax haven jurisdictions such as BVI and Cayman Islands, to ONSHORE jurisdictions such as Singapore (VCC Framework) and Hong Kong (Limited Partnership Fund), both of which have been building up their competitive edge in Fund Structures and Asset Management through various tax breaks, tax incentives and vast DTA networks. We are seeing more VC/PE funds and family offices setting up fund structures in Singapore via Variable Capital Company (VCC). As at 24 Nov 2020, 10 months since the VCC was launched in January 2020, there are already more than 150 VCCs set up. Why ONSHORE Fund Structure As an onshore structure which domiciled in Singapore obviously comes with advantages because if the fund manager is located here, investment professionals are on the ground, these lend very well to substance arguments (which are heatedly discussed in offshore structure). From a legal perspecti