What does a VCC cost? Government fees, recurring cost categories and what drives the total

The cost of a VCC has two very different parts. Government fees are small and fixed: ACRA charges S$8,015 to register a new VCC (S$15 for the name application and S$8,000 for incorporation) and S$400 for each sub-fund (ACRA Step 1, 29 January 2026; Step 5a, 19 October 2026). Service-provider costs are larger and variable: the fund manager, administrator, auditor, custodian, company secretary, directors, AML/CFT institution and advisers each charge on their own basis, and together they make up most of the annual budget.

There is no official source for market service fees, and quotes vary widely by provider and fund profile, so this page does not give price ranges for them. Instead it lists every official fee with its source date, the recurring cost categories and how each is usually priced, and the factors that push the total up or down. Use it to build a like-for-like request for quotations.

Official one-off fees (ACRA)

A new umbrella VCC launching with two sub-funds therefore pays S$8,815 in ACRA fees (S$8,015 plus 2 × S$400), and each later sub-fund adds S$400. Late filing is the main avoidable government cost: ACRA warns of late-filing penalties for annual returns of up to S$600, and states that VCCs "may face fines, director disqualification, prosecution and striking off for late filing". See the compliance calendar.

Official costs if you run your own fund manager

Every VCC needs a permissible fund manager. A sponsor that appoints an existing licensed manager pays that manager's fees and no MAS licence fee. A sponsor that builds its own licensed fund management company (LFMC) takes on these official costs:

Base capital is not an expense, but it is money that must stay in the manager. The larger cost of this route is people: SFA 04-G05 expects an A/I LFMC to have a Singapore-resident CEO, at least two directors and at least two relevant professionals with five years' experience, plus compliance arrangements and a dedicated office. MAS also expects to take up to 6 months to review a complete application. See the permissible fund manager.

Recurring service-provider cost categories

For GST, a fund that meets the conditions of a qualifying tax incentive and is managed or advised by a Singapore prescribed fund manager can recover GST on most expenses under the GST remission, at a fixed recovery rate and without registering for GST, until 31 December 2029 (IRAS e-Tax Guide, 22 April 2026; MAS FDD Cir 05/2026). Claims are made quarterly. Disallowed expenses are excluded, so the remission recovers some, not all, of the GST in provider invoices.

What drives the total

1. Number of entities and sub-funds. Audit, administration and secretarial fees are often quoted per sub-fund; an umbrella reduces duplication of the board and providers but does not make extra sub-funds free.
2. Strategy and asset types. Listed, liquid portfolios are cheaper to value and hold than private credit, property or unlisted equity.
3. Dealing frequency. Daily or weekly NAVs cost more than monthly or quarterly ones; closed-end funds avoid most dealing costs.
4. Investor base. More investors mean more onboarding, CDD and reporting. Retail authorised schemes add at least three directors, one independent, and heavier documentation.
5. Manager route. Own LFMC versus third-party manager is usually the largest single structural choice.
6. Tax scheme conditions. 13O/13U spending and staffing conditions can require Singapore spending above what the fund would otherwise incur.

Tax-incentive conditions as a cost floor

The local business spending thresholds in the fund tax schemes are conditions for an award, not fees. Spending that counts towards the condition is spending the fund or its manager would have to incur in Singapore each basis period to enjoy the exemption.

Source: MAS FDD Cir 05/2026, 31 July 2026. As a transitional measure, 13O/13OA non-SFO funds need only meet a S$200,000 total business spending test for YAs before YA 2028, and 13U non-SFO funds with awards commencing before 1 January 2025 need only meet S$200,000 of local business spending for YAs before YA 2028; the tiers apply from YA 2028 (paras 3.4 and 3.6). SFO funds can partly meet Table C through qualifying grants, which count at twice their value. For an umbrella VCC, spending is measured across all sub-funds because the umbrella is one entity for the award. Conditions apply in each basis period and can change; see how VCCs are taxed and single family office. Singapore tax only.

Is there still a VCC grant?

MAS and ACRA launched the VCC Grant Scheme on 15 January 2020, co-funding "up to 70% of eligible expenses paid to Singapore-based service providers", capped at S$150,000 per application and a maximum of three VCCs per fund manager, for up to three years (joint media release). Law-firm commentary on MAS's factsheet of 13 January 2023 reports an extension from 16 January 2023 to 15 January 2025 on narrower terms: open to fund managers that had not previously incorporated or re-domiciled a VCC, one VCC per applicant, with 30% of qualifying expenses co-funded and capped at S$30,000 (Allen & Gledhill, 7 February 2023). No official statement on a later extension was found when this page was updated. Check with MAS whether any grant is available before budgeting for it.

Getting comparable quotes

Send every provider the same fund profile: VCC type and number of sub-funds, strategy and asset types, expected AUM at launch and after three years, dealing frequency, number and type of investors, accounting standard, target tax scheme and launch date. Ask for fees split into one-off and recurring items, minimum fees, per-sub-fund charges, pass-through costs and termination charges. Ask which assumptions would change each quote, so totals can be compared at launch and target size. The roles behind each line are explained on service providers, and the filing sequence on how to incorporate a VCC. If you need a cost model built for your own structure, you can register your enquiry through the contact options on this site.