VCC Grant Scheme (VCCGS) — 30% co-funding mechanics — Complete 2026 guide
The VCC Grant Scheme co-funds part of the cost of incorporating or registering a Variable Capital Company in Singapore. Under its current mechanics, the scheme reimburses 30% of qualifying set-up expenses paid to Singapore-based service providers, capped at S$30,000 per VCC and limited to a small number of VCCs per fund manager. It is administered by the Monetary Authority of Singapore.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
How the VCC Grant Scheme works
The VCC Grant Scheme (VCCGS) is a defrayal scheme, not a cash subsidy paid upfront. A fund manager incorporates a VCC, pays qualifying set-up costs to eligible Singapore-based providers, then claims reimbursement of a percentage of those costs. The grant is designed to lower the barrier to choosing the VCC framework over offshore alternatives, reinforcing Singapore’s position as a fund-domiciliation hub. Because parameters are set and revised by MAS, always confirm the live terms on the MAS schemes and initiatives page before relying on them.
The 30% co-funding mechanics
- Co-funding rate: 30% of qualifying expenses.
- Cap per VCC: S$30,000.
- Limit per fund manager: a small maximum number of VCCs (commonly up to three) can be claimed.
- Qualifying expenses: set-up costs paid to Singapore-based service providers, such as legal fees for the constitution, incorporation and certain tax and regulatory advisory work.
- Excluded: the grant targets eligible set-up costs, not ongoing annual running costs.
Worked example: if qualifying set-up costs are S$60,000, the 30% co-funding is S$18,000, which is within the S$30,000 cap. If qualifying costs are S$150,000, the 30% would be S$45,000 but the reimbursement is capped at S$30,000.
Who is eligible
The applicant is the VCC’s fund manager, which must be a permissible fund manager regulated by MAS under the Securities and Futures Act 2001. The VCC itself must be validly incorporated under the Variable Capital Companies Act 2018, the incorporation of which is governed by Section 17 of that Act. The qualifying expenses must be paid to Singapore-based service providers, which keeps the economic benefit onshore. New launches typically interest venture and private-markets managers; our companion guide to the VCC for venture capital funds shows where the scheme fits a typical fund launch.
How to claim, step by step
- Confirm eligibility of the fund manager and the planned VCC against the current MAS terms.
- Incorporate the VCC and engage Singapore-based providers for the qualifying work.
- Keep complete records: engagement letters, invoices and proof of payment for every qualifying cost.
- Submit the claim to MAS within the prescribed window with supporting documents.
- Receive reimbursement of 30% of qualifying costs, up to S$30,000 per VCC.
Fitting VCCGS into the wider incentive picture
The grant defrays set-up cost, but the bigger long-term saving for a fund usually comes from tax exemptions and other incentives, with tax administration handled by IRAS and the company register by ACRA. Managers comparing Singapore’s broader incentive suite often look at programmes such as the concessionary-tax regimes our partners describe in their guide to the Global Trader Programme. Fund managers structuring team compensation alongside a launch may also review our partners’ guide to employee incentive schemes and ESOPs.
Timing the claim around your launch
Because the VCC Grant Scheme reimburses costs already paid to Singapore-based providers, the sequence of events determines whether you capture the full benefit. Engage eligible Singapore providers for the qualifying work, ensure each engagement letter and invoice clearly identifies the VCC and the nature of the work, and pay through traceable channels so proof of payment is unambiguous. Costs paid before the relevant scheme parameters apply, or to overseas providers, generally fall outside the claim, so confirm eligibility before instructing work rather than after.
Plan the claim window into your launch timeline. Reimbursement is time-bound, so a fund that incorporates, then drifts for months before assembling its documentation, risks missing the window or scrambling at the deadline. The cleaner approach is to maintain a running file of qualifying costs from day one, so that as soon as the VCC is incorporated the claim can be assembled and submitted promptly. For managers launching more than one vehicle, track each VCC’s qualifying costs separately, since the S$30,000 cap and the per-manager limit on the number of VCCs apply on a per-vehicle basis.
Common mistakes and gotchas
- Assuming the old 70% rate still applies. The scheme has been revised; the current co-funding mechanic is 30% with a S$30,000 cap, so model on today’s terms.
- Paying non-Singapore providers. Costs paid to overseas providers generally do not qualify.
- Claiming running costs. The grant covers eligible set-up costs, not ongoing administration or audit.
- Missing the claim window. Reimbursement is time-bound; keep documents ready and claim promptly.
FAQs
How much can I actually get back? 30% of qualifying set-up costs, capped at S$30,000 per VCC, for a limited number of VCCs per fund manager; confirm the current cap and count with MAS.
Who applies, the VCC or the manager? The fund manager applies, and it must be a permissible fund manager regulated by MAS under the Securities and Futures Act 2001.
Does the grant cover annual running costs? No. It is aimed at eligible incorporation and set-up costs, not the ongoing running-cost stack.
Can I claim for multiple VCCs? Up to the per-manager limit (commonly a few VCCs); each claim is capped at S$30,000.
Is the scheme guaranteed to be open? No. It is a policy scheme MAS can revise or close, so verify it is currently available before budgeting around it.
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.