VCC Grant Scheme (VCCGS) — 30% co-funding mechanics — Step-by-step walkthrough
The VCC Grant Scheme co-funds part of the qualifying set-up costs of incorporating or redomiciling a Variable Capital Company in Singapore, historically at around 30% of eligible expenses subject to a cap per VCC. This walkthrough explains the mechanics, eligibility, the costs in Singapore dollars and the application timeline as at June 2026.
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 (VCCGS) is a Monetary Authority of Singapore initiative that defrays part of the professional costs of establishing a Variable Capital Company, including legal, tax, administration and regulatory-compliance fees paid to Singapore-based service providers. The Variable Capital Companies Act 2018 establishes the VCC as a corporate fund vehicle, and Section 17 of the Variable Capital Companies Act 2018 confers separate legal personality on the VCC, which is the structure the grant supports.
The scheme typically co-funds around 30% of qualifying expenses, capped at a fixed amount per VCC, with an overall limit on the number of VCCs a single applicant can claim for. Sponsors should confirm the current co-funding rate, cap and scheme availability directly with MAS, as the scheme has been extended and recalibrated over time.
Who the scheme is for
The VCCGS is aimed at fund managers and sponsors incorporating a new VCC or redomiciling an existing foreign fund into a VCC. It suits managers launching VCC family office investment vehicles, fund-of-funds and feeder structures. The manager appointed to the VCC must be a permissible fund manager, as explained in our Section 46 permissible fund manager rules guide.
Eligibility and qualifying expenses
To qualify, the VCC must be incorporated or redomiciled in Singapore and managed by a Singapore-based licensed or registered (now licensed) fund manager. Eligible expenses are those paid to Singapore-based service providers for work directly attributable to the VCC’s incorporation or redomiciliation. Expenses must be properly documented and incurred within the claim period. Related tax incentives, such as those tied to the Section 13U enhanced-tier fund scheme, are assessed separately from the grant.
VCC Grant Scheme costs and timeline
Indicative figures as at June 2026: total VCC incorporation costs (legal, tax structuring, administration and regulatory) commonly run S$30,000 to S$80,000 for a single-fund VCC, more for umbrella structures. With co-funding of around 30% capped per VCC, the grant can offset a meaningful share, with the cap typically in the region of S$30,000 per VCC. ACRA’s VCC incorporation fee is S$8,000 (or S$400 for the name application plus the incorporation component, depending on the current schedule). Allow 4 to 10 weeks for incorporation and several weeks for grant processing after submission.
Step-by-step: claiming under the scheme
Confirm scheme availability, the current co-funding rate and the cap with MAS. Engage Singapore-based service providers and keep itemised invoices. Incorporate or redomicile the VCC through ACRA’s VCC portal, appointing a permissible fund manager. Compile the qualifying-expense schedule with supporting invoices. Submit the grant claim through the MAS process within the claim window. Respond to any MAS queries and reconcile the disbursement against your cost schedule. For the destination tax incentive, review the Section 13U enhanced-tier fund scheme, and budget administration costs using our VCC fund administrator pricing guide.
Common mistakes and gotchas
The most frequent errors are claiming expenses paid to non-Singapore providers, missing the claim window, and exceeding the per-VCC cap without realising the excess is not co-funded. Sponsors sometimes assume the grant covers ongoing running costs; it is directed at set-up and redomiciliation. Always verify the scheme is still open before relying on it in a budget.
Related guides
See the Section 46 permissible fund manager rules, the VCC for family office investment vehicles walkthrough, and the Section 13U enhanced-tier fund scheme on the tax side.
Authoritative references: MAS schemes and initiatives sets out the grant terms, ACRA handles VCC incorporation, and the Inland Revenue Authority of Singapore addresses the related fund tax incentives.
FAQs
How much does the VCC Grant Scheme co-fund?
Historically around 30% of qualifying set-up expenses, capped per VCC. Confirm the current rate and cap with MAS, as the scheme has been recalibrated over time.
What expenses qualify?
Costs paid to Singapore-based service providers for work directly attributable to incorporating or redomiciling the VCC, properly documented and within the claim window.
Does the grant cover running costs?
No. It is directed at set-up and redomiciliation costs, not ongoing administration or management fees.
How long does it take?
Allow 4 to 10 weeks for VCC incorporation and several weeks for grant processing after a complete claim submission.
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.