VCC Grant Scheme (VCCGS) walkthroughs — Complete 2026 guide
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
The vcc grant scheme (VCCGS) is the Monetary Authority of Singapore co-funding programme that defrays up to 30% of the qualifying setup costs of a new Variable Capital Company or sub-fund, capped at S$30,000 per VCC. Originally launched in 2020 and refreshed in 2022 and 2024, the scheme remains active into 2026 for managers structuring Singapore-domiciled funds. This walkthrough covers eligibility, the application sequence, what is and is not reimbursable, and the practical gotchas that trip up first-time applicants.
What the VCC Grant Scheme is and why it exists
MAS launched the vcc grant scheme alongside the Variable Capital Companies Act 2018 to accelerate adoption of the new fund vehicle and to offset the higher incorporation cost (S$8,000 ACRA versus S$315 for a Pte Ltd). The scheme reimburses 30% of qualifying expenses paid to Singapore-based service providers for incorporating or registering a VCC by way of redomiciliation, subject to a S$30,000 cap per VCC and a maximum of three VCCs per fund manager group. In 2026 MAS continues to publish scheme parameters at mas.gov.sg/vcc; check that page before quoting current eligibility to a client because the scheme has been refreshed every two years.
Who is eligible for the VCCGS
To qualify, the VCC must be incorporated or redomiciled into Singapore under the Variable Capital Companies Act 2018, and managed by a Permissible Fund Manager (Licensed Fund Management Company, CMS Licence holder, bank, finance company or insurer regulated by MAS under the Securities and Futures Act 2001). The fund manager group has not previously received three VCC grants. The qualifying expenses must be paid to Singapore-based service providers — Singapore-incorporated corporate-services firms, Singapore-qualified law firms, Singapore-resident fund administrators, and Singapore-approved auditors. Offshore counsel and offshore administrators are not reimbursable.
Family offices applying for Section 13O or 13U incentives under the Income Tax Act 1947 are eligible alongside their VCC incorporation; the grant is independent of the tax incentive but is commonly applied for at the same time.
What expenses qualify and what do not
Qualifying expenses include legal fees for drafting the constitution, sub-fund schedules and board minutes; corporate-services fees for ACRA filings and the VCC portal submission; tax-advisory fees for the Singapore tax-residency confirmation and structuring memo; and fund-administrator and audit setup fees. The 30% reimbursement applies to the actual invoiced amount, capped at S$30,000 per VCC. If your total qualifying spend is S$100,000, MAS reimburses S$30,000 (the cap kicks in before the percentage). If your total qualifying spend is S$60,000, MAS reimburses S$18,000 (30% of spend).
Non-qualifying items include ongoing annual costs (the grant is for setup only), marketing and distribution expenses, internal staff costs, offshore counsel fees, foreign administrator fees, and the ACRA incorporation fee itself (the S$8,000 government charge is excluded). Custody onboarding fees are excluded. Fund-raising costs are excluded.
Cost and timeline of the VCCGS application
The scheme reimburses up to S$30,000 per VCC. With three sub-funds the cap is still S$30,000 across the umbrella (it is per VCC, not per sub-fund). Application is free — MAS does not charge for processing. Reimbursement is paid in arrears after MAS receives the grant claim and supporting invoices, typically four to eight weeks after submission.
Timeline: the VCCGS application must be lodged with MAS within three months of the VCC incorporation (or redomiciliation) date. Service-provider invoices that pre-date incorporation by up to three months are eligible if directly attributable to the VCC setup; invoices older than three months pre-incorporation are usually rejected. Allow eight to sixteen weeks from MAS submission to grant disbursement.
Step-by-step application process
First, the fund manager (or its corporate-services agent) collects invoices and proof-of-payment from each Singapore-based service provider. Each invoice must clearly identify the VCC and the qualifying work performed. Second, the manager prepares the MAS grant application form, which requires the VCC UEN, the incorporation date, the manager’s MAS licence number, the qualifying-expense breakdown, and confirmation that the VCC has not already received a VCCGS award. Third, the application is submitted via the MAS grant portal with all supporting invoices in PDF.
Fourth, MAS reviews the application — typically four to six weeks. MAS may request additional information, particularly where service-provider invoices bundle non-qualifying items. Fifth, on approval MAS issues a Letter of Offer specifying the grant amount; the manager countersigns. Sixth, MAS disburses the reimbursement to the manager’s nominated Singapore bank account.
Common mistakes and gotchas
Mistake one: applying after the three-month window. Diary the deadline the day the VCC is incorporated. Mistake two: bundling non-qualifying items in service-provider invoices. Ask each service provider to itemise their VCC-incorporation work separately from any general advisory or ongoing-services line items. Mistake three: paying offshore counsel through a Singapore intermediary and assuming the grant covers it — MAS looks at the original recipient of the funds, not the invoicing party. Mistake four: assuming the grant covers the S$8,000 ACRA incorporation fee — it does not. Mistake five: assuming the cap is per sub-fund — it is per VCC. Mistake six: forgetting that VCC redomiciliations also qualify, as they are deemed incorporations for VCCGS purposes under the scheme terms.
If you also want the Section 13O or 13U tax incentive, plan the two filings together. The grant and the tax incentive run on different timelines and have different documentation, but the same service providers and invoices feed both. For neighbouring topics see our family office (13O/13U/13D) incentive coverage, Singapore incorporation for foreigners for the underlying entity work, and employment passes and work permits for relocating the investment team.
FAQs
Can a single fund manager apply for the VCCGS multiple times? Yes. Each manager group may receive up to three VCCGS awards, each capped at S$30,000.
Does the grant cover the VCC itself or the manager? The grant is paid to the fund manager (or, if the manager has authorised, to the corporate-services provider) in respect of the VCC’s setup costs. The economic benefit typically passes through to the fund’s seed investors via lower establishment costs.
What happens if MAS rejects part of the claim? MAS will approve the qualifying portion and reject the non-qualifying line items. There is no formal appeal process, but the manager can re-submit with revised documentation within the three-month window.
Does VCCGS apply to redomiciliations from Cayman or BVI? Yes. Part 13 of the VCC Act 2018 inward redomiciliation is treated as an incorporation for VCCGS purposes, subject to the same three-month deadline measured from the redomiciliation effective date.
Is the grant taxable in Singapore? Government grants are generally not taxable to the manager under the Income Tax Act 1947 if they reimburse capital or setup expenditure. Confirm with your tax adviser.
Related guides
For the official scheme parameters in 2026, see mas.gov.sg/vcc, ACRA filing requirements at acra.gov.sg, and IRAS coverage of grant treatment at iras.gov.sg. Within the Raffles group, our Singapore incorporation for foreigners and employment passes and work permits hubs cover the wider setup picture.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.