Setting Up a Family Office Using Singapore’s VCC Structure

Setting Up a Family Office Using Singapore’s VCC Structure

🗓️ September 8, 2025

Singapore is rapidly becoming a preferred jurisdiction for family offices looking to manage wealth across generations. The Variable Capital Company (VCC), launched in 2020, offers a flexible, credible, and efficient framework that makes it especially suitable for family office structures.

1. Why VCC for a Family Office?

  • Flexibility: Can be set up as a stand-alone VCC for a single pool of family wealth, or as an umbrella VCC with multiple sub-funds (e.g., for different branches of the family, asset classes, or geographies).

  • Confidentiality: Unlike traditional companies, shareholder registers of a VCC are not public, providing discretion.

  • Tax Efficiency: Eligible for Singapore’s tax incentive schemes (13O/13U) to exempt specified investment income.

  • Credibility: Globally respected jurisdiction with strong governance, legal framework, and financial ecosystem.

2. Typical Structure of a VCC Family Office

  • Umbrella VCC with sub-funds:

    • Sub-Fund A: Public equities & bonds

    • Sub-Fund B: Private equity & venture capital

    • Sub-Fund C: Real estate holdings

    • Sub-Fund D: Philanthropy or impact investments

  • Managed by a permissible Singapore fund manager (own licensed FMC or host FMC).

3. Process of Setting Up

  1. Define objectives: succession planning, investment goals, philanthropy.

  2. Choose structure: stand-alone vs umbrella VCC.

  3. Appoint a Singapore-based fund manager (mandatory under VCC Act).

  4. Incorporate the VCC and register sub-funds.

  5. Appoint service providers: fund administrator, company secretary, auditor, tax agent.

  6. Open bank account(s).

  7. Apply for tax incentives (optional, subject to qualifying conditions).

4. Key Considerations

  • Governance: Establish family charter, board representation, and succession planning.

  • Substance Requirements: For tax incentives, minimum local spending and staffing apply.

  • Ongoing Compliance: Annual audits, tax filings, and MAS reporting if incentives are used.

  • Philanthropy & Legacy: VCCs can be structured to ring-fence charitable giving alongside commercial wealth management.

5. Conclusion

The VCC structure offers families a modern, flexible, and discreet platform to consolidate investments, manage succession, and align wealth with long-term legacy goals. With proper structuring, governance, and administration, a family office VCC can provide both efficiency and sustainability across generations.

Thinking about setting up a family office in Singapore? Contact Angel Services to explore how a VCC can be tailored to your family’s needs.