Competitive Advantages of a VCC Fund Administrator

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 Singapore commenced the Variable Capital Companies (VCCs) earlier this year. These can be utilized to hold a single or various investment schemes. VCC is the new entity structure for the investment funds in Singapore. It can be formed as an umbrella fund with more than two sub-funds, each having diverse assets. A VCC fundadministrator provides solutions to a wide variety of VCC-related offerings. The team supports the VCC incorporation and consistent corporate secretarial and entire administration of the fund. In this article, you'll find the major aspects of the VCC and what it can be used for.

VCC fund administrator
VCC fund administrator


Uses of VCC

A variablecapital company Singapore supports fund managers by giving them a structure that imparts tax efficiency and flexibility in operations. It can be used for the following.

  • For conventional and alternative open-ended and close-ended fund strategies.
  • To list funds for data listing and trading purposes.
  • As an investing vehicle, thus providing fund structures that are multi-tiered.

Competitive Advantages of VCCs

Singapore has enhanced its position as a leading funds hub by introducing VCC. It consists of its own legal structure. Its why it can be used for conventional and alternative investment funds. Some benefits of VCCs are as follows:


  • It gives benefits for meeting conditions under the various fund tax incentives scheme.
  • There is no need for the publication of financial statements. 
  • VCCs allow you to acquire operational effectiveness. 
  • VCCs are suitable for many kinds of investment techniques. 
  • There is no limit on the number of shareholders.
  • Through VCCs, you can redeem shares and dividends that were paid through net assets. 

 

How the VCC Benefits Investors

This intelligent investment structure gives an array of compelling benefits to investors. They include the following.

 

  • A limited liability structure – The VCC umbrella structure imparts safeguards to investors through ringfencing assets. It also enables the liabilities to be segregated. The VCC Act bars the sub-fund's assets from being utilized to discharge those of a different sub-fund.
  • VCC allows easy entry and exit – In a conventional corporate vehicle, investors encounter problems like deciding on the right NAVs at various entry and exit time periods. VCC combats this problem by having the shares redeemed and issued at an amount that's equal to the VCC's NAV.
  • Better privacy – The VCC structure gives a new level of investor confidentiality that isn't there in traditional structures. Financial statements cannot be shared publicly, thus ensuring investor privacy.
  • VCC Act enables the fund structure for an election under the United States' check the box' rules – VCC permits the fund structure to serve as a pass-through entity for United States tax requirements. It thus is a lucrative choice for investors in the US.

Final Words 

VCC will surely boost the position of Singapore in turning into an internationally competitive fund domicile. A VCC fund administrator helps and supports you at every phase on your path to gain the desired outcome with a VCC launch. To know how it can prove to be advantageous for your business, you can connect with a fund services expert anytime.

 Ref link -https://ascentfundservicescom.wordpress.com/2021/12/15/advantages-of-a-vcc-fund-administrator/

 

Location: Singapore

Comments

  1. AnonymousAugust 17, 2022 at 10:51 PM

    I can know more about company formation in Singapore and their advantages. Keep sharing like this article.

    ReplyDelete

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