Secure tax exemption for your venture capital fund. This checklist covers eligibility requirements, approved fund structures, required documents, and application timeline for the VCFI scheme.

Is Your Fund Eligible?

Answer these questions before proceeding:

Fund Size Requirements

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Minimum S$10 million committed capital at application
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Fund has not reached final close

Fund Structure Requirements

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Structured as Limited Partnership (LP)
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OR: Structured as Company (Singapore or elsewhere)
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OR: Structured as Variable Capital Company (VCC)

Investment Commitment

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Willing to invest % into unlisted Singapore companies by year 5
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Able to meet Local Business Spending (LBS) requirements

All relevant boxes checked? Proceed to understand the full requirements.

What Are the VCFI Benefits?

The Venture Capital Fund Incentive provides significant tax advantages:

Benefit	Details
Tax exemption	Qualifying income streams exempt from tax
Duration	Life of fund, up to maximum 15 years
Benefit type	Tax exemption (not deduction)

Qualifying Income Streams

Tax exemption applies to income from:

Gains from disposal of investments
Dividends from portfolio companies
Other qualifying investment returns

Note: Specific qualifying criteria determined during application assessment with Enterprise Singapore.

What Are the Fund Requirements?

Minimum Fund Size

Requirement	Amount	Timing
Committed capital	S$10 million minimum	At time of application

Approved Fund Structures

Your fund must use one of these legal structures:

Structure	Description
Limited Partnership (LP)	Common VC fund structure with GP/LP arrangement
Company	Singapore-incorporated or foreign company
Variable Capital Company (VCC)	Singapore’s flexible fund structure for investment funds

Local Business Spending (LBS)

Requirement	Calculation
Formula	S$100,000 x incentive tenure (years)
Example (10 years)	S$100,000 x 10 = S$1,000,000 cumulative
Timing	Cumulative over incentive period

What counts as LBS:

Singapore office rent
Local staff salaries
Professional services from Singapore providers
Other qualifying business expenses in Singapore

Singapore Investment Requirement

Requirement	Details
What	Invest certain percentage into unlisted Singapore-based companies
Deadline	By year 5 or end of incentive period (whichever earlier)
Companies	Must be unlisted Singapore-based companies

Note: Specific investment percentage requirements discussed during application with Enterprise Singapore.

What Documents Do You Need?

Mandatory Documents

Application Documents

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VCFI application forms (from Enterprise Singapore)
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MAS license (if applicable)
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Management team details and track record
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Corporate slides/profile

Fund Documentation

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Fund structure documentation (LP agreement, company constitution, or VCC documents)
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Evidence of committed capital (S$10M minimum)
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Investment strategy and target sectors
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Fund terms and fee structure

Compliance Documents

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AML/KYC policies and procedures
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Fund administrator details (if applicable)
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Auditor appointment confirmation

Management Team Details

Enterprise Singapore will assess your team’s credentials:

Track record in venture capital investing
Experience with Singapore market
Investment thesis and strategy
Past fund performance (if applicable)

How Do You Apply?

Application Timeline

Step	Action	Details
1	Contact Enterprise Singapore	Email: SSG_Investor_VCFI@enterprisesg.gov.sg
2	Discuss fund structure	Confirm eligibility and requirements
3	Prepare application documents	Gather all required documentation
4	Submit application	Must be before final close of fund
5	Assessment	Enterprise Singapore reviews application
6	Approval	Receive incentive terms and conditions

Key Application Deadline

Apply before final close of fund. There is no fixed application deadline - timing depends on your fund’s fundraising schedule.

Contact Information

Contact	Details
Email	SSG_Investor_VCFI@enterprisesg.gov.sg
Agency	Enterprise Singapore
Programme	Startup SG Investor

What Are the Ongoing Obligations?

Annual Compliance

Once approved, you must:

Meet cumulative LBS requirements
Report on Singapore investments
Maintain approved fund structure
Submit annual compliance reports

Investment Milestone

Milestone	Requirement
By year 5	Invest required percentage into unlisted Singapore companies
Alternative deadline	End of incentive period (if earlier than year 5)

Record Retention

Keep all documents for the duration of the incentive period plus 5 years:

Investment records
LBS expense documentation
Fund financial statements
Compliance reports

Common Pitfalls to Avoid

Application Timing

Late application: Must apply before final close of fund
Insufficient capital: Ensure S$10M committed at application time
Wrong structure: Confirm fund structure is LP, Company, or VCC

Ongoing Compliance

LBS shortfall: Track cumulative spending throughout tenure
Missing investment target: Monitor Singapore investment percentage
Documentation gaps: Maintain complete records for audits

Fund Structure Issues

Restructuring: Changes to fund structure may affect incentive
GP changes: Material changes to management team require notification
Fund extension: Extension beyond 15 years not covered by incentive

Venture Capital Fund Incentive - Full scheme details and eligibility
Singapore Grants Glossary - Key terms and definitions
Grant Pitfalls Guide - Common mistakes to avoid
Fund Management Incentive - Related tax incentive for fund managers
FMI Checklist - Application checklist for the Fund Management Incentive
EDBI vs VCFI Decision Matrix - Compare EDBI and VCFI to choose the right incentive
FMI vs VCFI Decision Matrix - Compare FMI and VCFI side by side
Startup SG Decision Matrix - Navigate all Startup SG programmes to find the best fit

Official Links

Startup SG Investor - VCFI - Official programme page
Enterprise Singapore - Administering agency
MAS Fund Management Licensing - Fund management licensing
About Variable Capital Companies (VCC) - Variable Capital Company information

VCFI Checklist: VC Fund Tax Incentive