Singapore Fund Company Registration Full Analysis Why Choose Singapore?

Singapore, one of the world's renowned financial centers, has attracted a large number of international investors and companies to register their businesses due to its stable environment, sound legal system, and efficient services. In recent years, with the rapid development of Southeast Asian economies and the rise of the digital economy, more and more companies are choosing to establish physical offices or branches in Singapore. This article will provide a detailed analysis of the registration process for fund companies in Singapore and explore why an increasing number of businesses are choosing to set up operations in this country.

According to a report from Lianhe Zaobao on June 2025, data from the Monetary Authority of Singapore MAS showed that by the first quarter of 2025, the total assets under management in Singapore had exceeded 1.3 trillion US dollars, with the proportion of private equity funds and hedge funds continuing to rise. This indicates that Singapore has become one of the most attractive fund management centers in Asia.

1. Types of Fund Companies in Singapore

In Singapore, common fund types include Unit Trust Funds, Variable Capital Companies VCC, and Limited Partnership Funds LPF. Among these, VCC has become the most popular structure in recent years due to its high flexibility and relatively lenient regulations, which make it appealing to investors.

According to the Accounting and Corporate Regulatory Authority ACRA of Singapore, a VCC is a company with independent legal status that can issue different classes of shares, making it suitable for various investment strategies. VCCs also allow fund managers to hold some shares in their personal names, facilitating the design of internal incentive mechanisms.

2. Detailed Registration Process

1. Determine the Fund Structure

Before registration, companies need to clarify the type of fund and organizational form. For example, if choosing a VCC, they must decide whether it is an open-ended or closed-end fund and select an appropriate shareholder structure.

2. Prepare the Company Name

The company name must comply with ACRA regulations and cannot be the same as existing companies or use sensitive words. It is usually recommended to conduct a name check in advance through the ACRA website.

3. Submit the Registration Application

The registration application must be submitted to ACRA, including the articles of association, shareholder information, and director details. For fund companies, additional information such as the background of the fund manager and compliance plan must also be provided.

4. Obtain a License

Under the Securities and Futures Act SFA, if the fund involves raising public funds or selling to professional investors, a license must be applied for from MAS. For example, fund managers may need to obtain a Capital Markets Services License CMS License.

5. Open a Bank Account

After completing the registration, the company needs to open a corporate bank account with a local Singapore bank for subsequent fund operations and tax filings.

6. Tax Registration and Compliance

All companies registered in Singapore must complete tax registration and comply with local tax laws. The corporate tax rate in Singapore is 17%, but many eligible fund companies can enjoy tax incentives.

3. Why Choose Singapore?

1. Stable Business Environment

Singapore is known for its efficient and transparent services. According to the World Bank's Doing Business Report, Singapore has consistently ranked among the top countries with the best business environment globally. Businesses can complete registration and operational preparations within a short period.

2. Comprehensive Legal System

Singapore has a mature legal system, especially in financial and commercial fields, where legal protections are well-established. This provides a favorable legal environment for businesses and reduces operational risks.

3. Low Tax Rates and Tax Incentives

The corporate tax rate in Singapore is 17%, lower than many developed countries. Additionally, Singapore has introduced a series of tax reduction policies for the fund industry, such as tax exemptions or reductions for eligible fund revenues.

4. Convenient Financing Environment

Singapore has a well-developed financial market, allowing companies to easily access financing support. At the same time, Singapore is also one of the world's largest offshore fund centers, attracting a large amount of international capital.

5. Geographic Advantages

As a hub city in Southeast Asia, Singapore connects China, India, other Southeast Asian countries, and global markets. For investors looking to expand into the Asia-Pacific market, Singapore serves as an ideal platform.

4. Recent Trends and Outlook

In 2025, with the global economic recovery and deeper regional cooperation, Singapore's fund industry is facing new opportunities. According to the Straits Times, Singapore is actively promoting the development of green finance and encouraging sustainable investments. This trend offers more opportunities for funds in areas such as new energy and environmental technology.

With the development of digital assets and blockchain technology, Singapore is also exploring the regulatory framework for cryptocurrency funds. In 2025, MAS issued new regulations that provide clearer guidance for digital asset fund managers, further enhancing market confidence.

Conclusion

In summary, Singapore has become the preferred destination for global investors to establish fund companies due to its stable business environment, comprehensive legal system, low tax rates, and convenient financing conditions. Whether for traditional funds or emerging digital asset funds, Singapore can provide strong support. For investors looking to enter the Asian market, choosing Singapore is not only a wise decision but also an important step toward success.