Why Singapore’s VCC Structure Is Gaining Popularity Among Family Offices
Singapore has quietly become one of the world’s most attractive jurisdictions for family offices—and at the center of this shift is the Variable Capital Company (VCC). Introduced in 2020, the VCC was initially designed for fund managers, but it has rapidly evolved into a preferred structure for families looking to manage investments with efficiency, flexibility, and confidentiality.
So, what makes the VCC so attractive?
At its core, the VCC offers a modular legal structure that allows multiple sub-funds under one umbrella entity. This is a major advantage for families managing diversified portfolios, separate generational wealth, or co-investments across asset classes. Each sub-fund is legally ring-fenced, meaning liabilities are isolated—protecting the rest of the structure if one segment underperforms or carries risk.
In terms of tax efficiency, VCCs can qualify for Section 13O or 13U exemptions, which offer tax relief on designated investments. The structure also benefits from Singapore’s extensive network of double tax treaties, giving families access to reduced withholding taxes across key markets in Asia, Europe, and beyond.
Beyond the technical advantages, the VCC is discreet. Shareholder information is not publicly accessible, which gives it an edge over traditional companies or trusts in many Western jurisdictions. For families concerned about regulatory exposure or public disclosure, this level of privacy matters.
We’re increasingly seeing family offices use the VCC for:
- Consolidating multiple investment strategies into one vehicle
- Separating branches of the family or generations via dedicated sub-funds
- Launching co-investment platforms with friends or partners
- Gaining access to institutional-grade structures without needing a fund license
Compared to typical offshore companies or holding structures, the VCC provides a clear legal and regulatory framework, backed by the credibility of Singapore’s Monetary Authority (MAS). It also complements UAE-based structures—like ADGM or DIFC foundations—by giving families a more investment-focused, tax-transparent platform in Asia.
In practice, setting up a VCC is relatively streamlined when guided by experienced advisors like Bolster Group. While Singapore regulations require the VCC to be managed by a licensed or exempt fund manager based locally, this doesn’t mean the family needs to build in-house asset management capabilities from day one. Many single-family offices operate under exemptions or partner with third-party licensed managers to meet regulatory requirements while maintaining operational control. With the right structuring, a VCC can be tailored to reflect a family’s specific investment objectives—whether that’s managing public markets, venture capital, real estate, or cross-border co-investments. The process includes appointing directors, engaging a fund administrator, and submitting for 13O or 13U tax exemption approval, all of which can be coordinated efficiently with Bolster Group. The key is not just compliance, but building a structure that’s scalable, discreet, and aligned with long-term strategy.
At Bolster Group, we help clients assess whether a Singapore VCC is the right structure for their goals. We coordinate with licensed fund managers, assist with tax planning, and ensure compliance from setup through operation.
As international tax rules tighten and regulatory scrutiny increases, families need forward-looking structures that combine flexibility, compliance, and efficiency. The VCC does exactly that—and for many, it’s becoming a cornerstone of their long-term strategy.
If you’re considering a VCC or comparing Singapore and UAE options, Bolster Group is here to advise and support you at every step.
Reach out to Bolster Group to explore whether the Singapore VCC is right for your family’s global structure.