13U Tax Exemption (Enhanced Tier, formerly 13X)

The Monetary Authority of Singapore is Singapore’s central bank and integrated financial regulator, responsible for licensing and supervising all fund management companies, securities intermediaries, and financial institutions operating in Singapore. MAS administers the Securities and Futures Act (SFA) under which fund managers are licensed or registered.

The Variable Capital Company is a corporate fund structure introduced by Singapore in January 2020 under the Variable Capital Companies Act. A VCC can be set up as a single standalone fund or as an umbrella structure with multiple sub-funds, each with segregated assets and liabilities. It offers operational flexibility such as issuing and redeeming shares without shareholder approval, making it well-suited for both open-ended and closed-ended PE/VC fund strategies.

An LFMC holds a Capital Markets Services (CMS) licence from MAS to conduct fund management activities in Singapore. LFMCs are subject to comprehensive regulatory requirements including minimum base capital of S$250,000 (or S$1 million for retail-facing managers), ongoing compliance, risk management, and audit obligations. This licence is required for managers serving retail investors or managing assets above the thresholds applicable to RFMCs.

An RFMC is a fund management company registered (rather than licensed) with MAS, permitted to manage assets for up to 30 qualified investors with total AUM not exceeding S$250 million. RFMCs benefit from a lighter regulatory framework compared to LFMCs, making this an accessible entry point for emerging GP teams setting up in Singapore while still being subject to MAS oversight and anti-money-laundering requirements.