Explanation of the Variable Capital Company (VCC)

Posted by InCorp Global on January 15th, 2020

Learn more about the newly introduced Variable Capital Company (VCC) through this straightforward infographic.

 A Variable Capital Company (VCC) is an alternative form of corporate vehicle that will soon become available for Collective Investment Schemes (CIS). Presently, the organisational structures available to CIS are the company, limited partnerships, and the unit trust structures. The VCC can be used for both open-ended and closed-ended alternative and traditional fund strategies. As a corporate vehicle with flexible capital, shares are created when investments are made, and the shares are readily redeemable by the shareholders. This kind of flexibility was lacking in the existing vehicle of corporations available under The Companies Act that has several restrictions when it comes to capital reduction and dividend distribution. This new vehicle, exclusively designed for the fund management industry, will strengthen Singapore’s position as a fund management hub in the region.

This infographic has been originally uploaded at InCorp Global.