The Fund Management Incentive (FMI) provides a 5% concessionary tax rate on management fees and performance bonuses for qualifying fund managers. This checklist covers all requirements, the critical VCFI prerequisite, and the application process.

Is VCFI Approval Required First?

Yes. VCFI approval is mandatory before you can apply for FMI.

FMI is specifically designed for fund managers managing funds that have already been approved under the Venture Capital Fund Incentive (VCFI). You cannot apply for FMI without first having a VCFI-approved fund.

VCFI Prerequisite

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Fund has obtained VCFI approval from Enterprise Singapore
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VCFI approval letter or documentation available
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Fund is actively investing in qualifying startups

Do not proceed with FMI application until your fund has VCFI approval. If you need VCFI first, see our VCFI scheme page.

Do You Meet the FMI Eligibility Requirements?

Fund Management Requirements

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Managing one or more VCFI-approved funds
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Minimum S$40 million AUM comprising VCFI funds
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Valid MAS license held

Commitment Requirements

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Willing to hire at least 1 additional investment professional by end of FMI award period
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Able to demonstrate fund management track record
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Singapore-based fund management operations

All boxes checked? Proceed to the application process.

What Are the Tax Benefits?

FMI provides significant tax savings for qualifying fund managers:

Benefit	Details
Tax Rate	5% concessionary rate
Applies To	Management fees and performance bonuses
Duration	Up to 5 years
Renewal	Renewable in tranches of up to 5 years
Comparison	Standard corporate tax rate is 17%

Tax Savings Example

Scenario	Standard Tax (17%)	FMI Rate (5%)	Annual Savings
S$1M management fees	S$170,000	S$50,000	S$120,000
S$5M management fees	S$850,000	S$250,000	S$600,000
S$10M management fees	S$1,700,000	S$500,000	S$1,200,000

What Documents Do You Need?

Core Documents

VCFI approval letter or certificate
MAS license documentation
Fund management agreement(s)
AUM statement showing S$40M+ from VCFI funds
Company registration documents
Audited financial statements

Supporting Documents

Fund structure and investment strategy
Track record of fund management
Hiring plan for additional investment professional
Singapore operations evidence
Portfolio company list (VCFI-qualifying investments)

How Do You Apply for FMI?

Application Process

Step	Action	Details
1	Obtain VCFI approval	Your fund must first be approved under VCFI
2	Contact Enterprise Singapore	Reach out to discuss FMI eligibility
3	Prepare application	Gather all required documents
4	Submit via BGP	Apply through Business Grants Portal
5	Assessment	Enterprise Singapore reviews your application
6	Approval	Receive FMI award if approved

Application Checklist

Before Applying

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Confirmed VCFI approval status
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Verified S$40M AUM threshold met
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MAS license is current and valid
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Prepared hiring commitment plan

Application Submission

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Contacted Enterprise Singapore for initial discussion
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Compiled all required documents
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Submitted application via Business Grants Portal
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Received application acknowledgment

What Are the Key Commitments?

Hiring Requirement

You must hire at least one additional investment professional by the end of your FMI award period. This is a binding commitment assessed at award completion.

What qualifies as an investment professional:

Portfolio manager
Investment analyst
Fund manager with deal-sourcing responsibilities
Other roles directly involved in investment decisions

AUM Maintenance

Your AUM from VCFI-approved funds must remain at or above S$40 million throughout the FMI period. Falling below this threshold may affect your FMI status.

Compliance Requirements

Maintain valid MAS license throughout FMI period
Continue managing VCFI-approved funds
Meet annual reporting requirements
Comply with all FMI terms and conditions

What Are Common Pitfalls to Avoid?

Eligibility Mistakes

Applying without VCFI: FMI requires VCFI approval first. Do not skip this step.
Insufficient AUM: Ensure S$40M threshold is met with VCFI funds specifically, not total AUM.
Lapsed MAS license: Keep your license current before and during FMI period.

Application Errors

Incomplete documentation: Missing VCFI approval letter or AUM statements delays processing.
Unclear hiring plan: Be specific about the investment professional role you will create.
Wrong portal: Apply via Business Grants Portal, not other government portals.

Compliance Issues

Missed hiring deadline: The additional hire must be made by end of FMI award period.
AUM fluctuations: Monitor your VCFI fund AUM to stay above the S$40M threshold.
Reporting failures: Submit required reports on time to maintain good standing.

How Long Does FMI Last?

Aspect	Duration
Initial Award	Up to 5 years
Renewal	Renewable in tranches of up to 5 years
Total Potential	Multiple renewal periods possible

Renewal Considerations

Start renewal discussions 6-12 months before expiry
Demonstrate continued compliance with FMI requirements
Show hiring commitment was met
Maintain AUM and MAS license requirements

Fund Management Incentive - Full scheme details and eligibility
Venture Capital Fund Incentive - Required prerequisite for FMI
Grant Pitfalls Guide - Common mistakes to avoid
Singapore Grants Glossary - Key terms and definitions
Corppass Setup Guide — how to set up BGP access

Official Links

Startup SG Investor - VCFI/FMI - Official scheme page
Business Grants Portal - Submit FMI application
Enterprise Singapore - Administering agency
MAS - Licensing authority
Corppass Guide - Portal access setup

FMI Checklist: Fund Manager Tax Incentive