Unlocking Business Potential in Singapore

As a global business hub, Singapore offers many benefits for family office investors and business that choose to base their operations there. Between the high standard of living and the attractive business incentives programs, there has been a notable rise in businesses in the city-state.  

Singapore has various programs to assist entrepreneurs and family offices who are interested in investing or relocating there. The Singaporean government has established fund structures, such as the variable capital company (VCC), and has administered various programs aimed at attracting and retaining talent. 

Key Takeaways 

• Singapore has numerous programs and incentives to encourage business relocation and investment. 
• The VCC structure provides operational flexibility, cost savings, tax incentives, and privacy benefits.  
• Singapore has established attractive individual and corporate tax rates and incentives.  

What Is a Variable Capital Company?  

Singapore’s funds industry has experienced substantial growth, partly due to the implementation of its VCC structure. As of June 2025, the Accounting and Corporate Regulatory Authority (ACRA) reported that there were over 600,000 businesses, a steady increase from the previous 537,000 in 2020. Accordingly, since Singapore’s VCC was created in January 2020, over 1,200 companies have registered as a VCC. 

Singapore’s VCC structure was designed for investment funds as a way for investors to separate assets under one entity. These structures are more operational and tax-efficient; exempting “designated investments,” including shares, bonds, and derivatives, from taxes.  

Key Features and Benefits of VCCs 

A variety of investment structures can benefit from VCCs.  

Cost Savings and Flexibility 

They provide fund managers with greater operational flexibility and cost savings. Managers can incorporate multiple funds within a single VCC, giving them greater flexibility in share issuance/redemption and dividend payments.

Fund Variety 

VCCs can also be set up as either a standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities. For fund managers that structure their funds as umbrella VCCs, there may be cost savings from using common service providers across the umbrella and its sub-funds.  

Re-Domiciliation  

Fund managers may incorporate new VCCs or re-domicile their existing overseas investment funds with comparable structures by transferring their registration to Singapore as VCCs.  

Shareholder Privacy 

Opposed to other fund structures, shareholder information does not need to be made public; however, registration must be disclosed to public authorities upon request for regulatory, supervisory, and law enforcement purposes.  

Tax Incentives  

A VCC is not subject to the capital requirements as other Singapore-based organizations, as they have access to over 80 tax treaties. For instance, if under an umbrella VCC, the company would only need to file one corporate income tax return. Additionally, income from a VCC can be exempt from tax if it qualifies for the government’s Enhanced Tier Fund (ETF) Scheme or Onshore Fund Exemption Schemes. For funds that have U.S. investors, a key benefit of the VCC is its eligibility for the U.S. ‘check-the-box' election, allowing the fund to be treated as transparent for the U.S. federal income tax purposes.  

Key Programs and Tax Opportunities for Entrepreneurs in Singapore  

To continue attracting and retaining the talent of individuals and families from around the world, the Singaporean government has administered many programs, including the EntrePass and the Foreign Artistic Talent Scheme.  

What Is the EntrePass? 

The EntrePass was created to attract serial entrepreneurs, high-caliber innovators, and experienced investors wanting to operate in Singapore. For a business to be eligible, it must be venture-backed or own innovative technologies. There are three main types of EntrePass, including: 

• Entrepreneur: When a company has raised at least S$100,000 of funding from a government investment vehicle, venture capital firm, or an angel investor recognized by a Singapore government agency. It also falls under an entrepreneur if incubated by a government-recognized accelerator or if it has an established business network and entrepreneurial track record.    
• Innovator: Someone who possesses intellectual property, has research collaborations with Singapore-based universities or credible research facilities, or has a record of extraordinary achievements in key areas of expertise.  
• Investor: Someone with a track record of solid investments.  

Single Family Office 

The Monetary Authority of Singapore provides tax exemption for specified income derived from designated investments for funds and family offices. Although approval is determined on a case-by-case basis, a family managed by a single-family office in Singapore is eligible for tax exemptions granted under 13O and 13U, formally known as 13R and 13X, of the Income Tax Act.   

Individual Taxation  

With one of the lowest income tax rates in the world, personal income tax in Singapore is based on a progressive structure. The resident tax rate starts at 0% and ends at 22% for income above S$320,000. It’s important to note that there is no capital gain or inheritance tax, and individuals are only taxed on income earned in Singapore.  

Corporate Tax  

Singapore’s headline corporate tax rate is 17%; however, companies are subject to certain exceptions. Singapore’s income tax is imposed on income accruing in or derived from the Republic of Singapore and on foreign-sourced income received or deemed received.  

Finding Success in Singapore 

Operating a business in Singapore offers ample benefits. From tax benefits or tax exemptions to flexible fund structures, companies can save time, resources, and money. Discover your full business potential and learn more about tax strategies, regulatory considerations, or investment opportunities by contacting us below.