VCC Grant Scheme (VCCGS) — 30% co-funding mechanics — Costs and fees breakdown
The Variable Capital Company Grant Scheme was a Monetary Authority of Singapore co-funding initiative that helped defray the cost of incorporating or registering a VCC. Its headline mechanic was reimbursement of 30 per cent of qualifying set-up expenses paid to Singapore-based service providers, capped at S$30,000 per VCC, for up to three VCCs per fund manager. Sponsors should confirm the scheme’s current availability and window with MAS before relying on it.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What the VCC Grant Scheme is
The VCC Grant Scheme, or VCCGS, was designed to lower the barrier to adopting the Variable Capital Company structure created under the Variable Capital Companies Act 2018. Rather than subsidising running costs, it targeted the one-off expense of incorporating a new VCC or registering an existing foreign corporate fund by way of re-domiciliation. Section 17 of the Variable Capital Companies Act 2018 establishes the VCC as a body corporate, and the grant was intended to encourage sponsors to use that framework by sharing the professional-fee burden of setting one up.
Who the scheme was for
The scheme was aimed at fund managers, family offices and asset managers incorporating a new VCC. Because the reimbursement was tied to fees paid to Singapore-based service providers, it also served the wider policy goal of building local fund-servicing capability. A sponsor planning several funds could benefit across multiple VCCs, subject to the per-manager cap.
The 30% co-funding mechanics
The core mechanic was straightforward: eligible set-up expenses were co-funded at 30 per cent, with the grant capped at S$30,000 for each qualifying VCC. Qualifying expenses were the professional service fees paid to Singapore-based providers for work directly related to incorporating or registering the VCC, such as legal, tax, administration and regulatory-compliance work. A single fund manager could claim for a limited number of VCCs, commonly up to three. Expenses had to be incurred with local providers and properly evidenced, and the grant was paid on a reimbursement basis after the VCC was established.
Cost and worked example
Consider a sponsor incurring S$120,000 of qualifying Singapore-based set-up fees for a new VCC. At 30 per cent co-funding, the theoretical support is S$36,000, but the per-VCC cap limits the grant to S$30,000, leaving the sponsor with a net set-up cost of S$90,000. Where qualifying fees are S$60,000, the 30 per cent figure of S$18,000 falls under the cap and is paid in full, giving a net cost of S$42,000. The cap therefore bites once qualifying fees exceed S$100,000 per VCC. For the full recurring cost picture beyond set-up, see our VCC Grant Scheme (VCCGS) running-cost guide, and for the tax-incentive context review the Foreign Sourced Income Exemption Section 13(8) Singapore (2026) resource.
Step-by-step: claiming the co-funding
First, confirm eligibility and, critically, that the scheme is open and funds remain available, since grant windows and budgets are finite. Engage Singapore-based service providers and keep detailed fee documentation. Incorporate the new VCC or register the re-domiciled fund with ACRA. Compile the qualifying expenses, ensuring each relates directly to set-up and was paid to a local provider. Submit the claim to MAS through the designated process with invoices and proof of payment. On approval, the grant is disbursed as a reimbursement, applying the 30 per cent rate and the S$30,000 cap.
Common mistakes and gotchas
The most serious error is assuming the scheme is still open; grant initiatives run for defined periods and can close, so current availability must be verified with MAS. A second is claiming fees paid to overseas providers, which do not qualify. A third is expecting the grant to cover running costs; it targets set-up only. Sponsors also sometimes exceed the per-manager VCC limit in their planning, and others under-document expenses, which delays or reduces the reimbursement.
Related guides
The grant offsets set-up cost, but the recurring running-cost stack and fund-administrator pricing determine the long-run economics. Sponsors pairing a VCC with a Singapore corporate vehicle should review our Section 13O vs 13U incorporation guidance.
FAQs
What percentage did the VCC Grant Scheme co-fund? 30 per cent of qualifying set-up expenses.
What was the cap per VCC? S$30,000 for each qualifying VCC.
How many VCCs could one manager claim for? Commonly up to three VCCs per fund manager.
Did the grant cover running costs? No; it applied only to incorporation or registration set-up expenses paid to Singapore-based providers.
Is the scheme still available? Grant windows are finite; confirm current status directly with MAS before relying on it.
Authoritative sources: scheme details at the Monetary Authority of Singapore, the corporate framework at ACRA, and tax treatment at IRAS.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email hello@rafflescorporateservices.com. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.