Eternity Law International — News — Fund management license in Singapore

Fund management license in Singapore

Published:
May 10, 2023

Storage of money can and should be realized in lands having a positive climate. One perfect place for it on our planet is Singapore. Governmental bodies in region are trying to do everything to continue the flow of investment into the country. In particular, it created versatile rules for corporations who want to do business-activities in country and provision comprehensive assets from governance. For Singapore fund management company registration, corporations need to meet certain prerequisites. Local norms are lenient than in European countries and the first thing to do is to establish a corporation and obtain a permit.

Types of fund management licenses in Singapore

It’s essential to understand basis of permits that can be obtained from a specialized government agency called MAS. Such organizations can issue the following permissions: 

  • LFMC-retail; 
  • LFMA A/1;
  • RFMC; 
  • VCFM;
  • VCC; 
  • Fintech. 

Each license has its specifics and you need to understand their differences from each other. Our firm is ready to help in hedge-fund establishment and the creation of other firms in territory of this country. 

LFMC Retail 

This permission is considered the highest level to get fund-management license Singapore. There’re no restrictions on the actions of capital-holders by class, and there are no restrictions regarding investment-projects. Most stringent prerequisites are applied to this license, and not all companies will be able to obtain it. 

For example, to obtain this permit, the lowest amount of capital should be 500 thousand SGD. This is money that must always be in the company’s account. If it is planned to provide collective investments, this amount should be doubled.

The corporation should be documented with state authorities and get local office. Additionally, it is crucial to have a compliance department and notify the regulator of all suspicious transactions. Also, the company is obliged to conduct an annual audit.

LFMA A/1

This license is slightly simpler than the previous version and is very similar to RFMC. Main difference is that it does not limit stock firms to investors with accreditation. Otherwise, the prerequisites for office, capital, and other criteria are identical to RFMC.

RFMC

One needs to possess assets of at least $250 thousand. However, number of capital-holders with accreditation cannot exceed 30 representatives. Of these, only half can be registered as funds.

To qualify as an accredited investor, entrepreneurs need to have earned the equivalent of S$300,000 in the previous year and possess financial assets of S$1 mln or personal funds doubled. An investor who fulfills 1 of these conditions will be able to obtain this status. 

VCFM

This format of the license is considered the simplest. The main condition for obtaining it is to invest at least 80% of the capital on certain goods. Quite often firms with such a permit invest in various start-ups, securities, and other documents. There are no prerequisites for them to have the basic aids, but organization intending to operate this permit needs to be documented locally and possess its own office. 

VCC

Such a license that may be obtained after the fund registration in Singapore is a relatively recent phenomenon. It is mostly issued by investment funds. Such corporations can have a variable capital structure and pay dividends to their shareholders.

They are used as separate funds or umbrella corporations with several sub-funds. However, the sub-fund must not use assets of similar satellites. Corporations with this type of license are needed to keep a register of shareholders, but it is not necessarily made public. Firm needs to have at least 1 director, office, a secretary, an auditor, and a fund manager. 

Fintech

This group combines all licenses that are issued for investing in financial technology. For example, it is the operation of payment institutions, currency exchange, crypto-currency transactions, and start-ups in Fintech-sphere. Companies must carry out transactions of no more than S$3 mln for a single payment service (double that if there are two or more). 

Businesses for sale in Singapore

Company in Singapore with bank account for sale

Asia, Singapore
Below you can see the basic information regarding the company in Singapore with bank account for sale Company in Singapore – whats included: Company in Singapore; Year of company registration: 2022; Declared activities: general consulting; Opening of corporate bank account is included; Nominee service can be provided; Fast transfer. You can buy company in Singapore…

Ready-made company in Singapore with a bank account for sale

Europe, UK
Below you can see basic information regarding a ready-made company in Singapore with a bank account for sale What is included  in the offer of the company in Singapure purchase:    Year of incorporation: 2013    Company activity: Investment holding company    Bank account: Standard Chartered Bank    Local director’s services: on request The price…

License for crypto exchanger in Singapore

Asia, Singapore Crypto forex brokers
Now this jurisdiction sets propitious conditions for the activities of crypto-exchanges. Thanks to the legal framework developed by the jurisdictional regulator (MAS), companies dealing with cryptographic currencies may legally operate in a given country. In Singapore, non-securities firms essentially don’t need a permit. Exchange deals involving crypto-assets are covered by governmental regulation as well as…

Norms for corporations to get a permission

Before setting up fund-management company in Singapore begins, entrepreneurs should understand prerequisites applying to businesses seeking to obtain appropriate permits. Before issuance, MAS checks: 

  • applicants, corporation heads, and stockholders for involvement in illegal transactions;
  • their skills and expertise in dealing with funds;
  • risks in starting a corporation;
  • study the company’s business-model and forecasts for its development.

On average, application-forms of firms for maximum licenses may last 6 months; for simpler licenses it’s up to four months. In the case of denial of a permit, corporation can reapply within 6-months-period.

You could be interested

PSP license in Spain

More businessmen are choosing Spain for establishing payment companies. This country has a very progressive FinTech environment. In accordance with official data, Spain is in the TOP-5 jurisdictions for issuing licenses for electronic money. It offers favorable taxation and management conditions, as well as a transparent licensing procedure with precise deadlines and compliance. Thus, a...

Company registration in Canada

The Canadian jurisdiction is attractive to foreign investors in that it has created the most flexible conditions for registering companies and has not introduced prohibitions on cooperation with representatives of other countries. Today, a particularly popular commercial area in Canada is the online business. The country is completely open for creating and selling Internet startups,...

Advantages of Setting-Up a Company in Barbados

Barbados, a Caribbean paradise known for its beautiful beaches and vibrant culture, is also an increasingly attractive destination for firm ventures. With a stable political circumstances, progressive economic policies, and a favorable tax regime, Barbados offers numerous benefits for firms looking to establish a foothold in the Isles and beyond. This article delves into the...

Offshore bank license in Vanuatu

Financial flows, credit activities, a set of monetary and settlement transactions – all this very attractive for the development of banking. Opening a bank in Europe is a rather problematic event. An alternative to obtaining a banking license is the Pacific Republic of Vanuatu in Melanesia. Security License in Vanuatu is quite profitable for the business in...

Application of Blockchain for climate action

The EU Commission takes an active participation in the blockchain-standard community aiming to use innovative approaches in blockchains to help combat ecological problems. Introducing comprehensive answers on the grounds of blockchain for climate action, the EU lawmaker presented a set of approaches that are expected to be workable. Blockchain & global warming Blockchain is a...

Supporting the Regulatory Process for Acquiring a Small Payment Institution License in Poland

The financial arena stands as an ever-evolving, complex battleground, replete with both avenues for prosperity and formidable obstacles for those daring to venture into the realm of financial services. In the intricate mosaic of European financial markets, Poland emerges as an alluring beacon of opportunity for those intent on establishing their presence in this dynamic...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360