The Mauritius Variable Capital Company (VCC) Fund is a type of investment vehicle that was introduced in 2022. It provides a framework for funds to carry out business through one or more sub-fund or Special Purpose Vehicle (SPV), all within one structure, and makes it possible for the assets and liabilities of each of the sub entities to be segregated and ring-fenced.
A Mauritius VCC Fund is aimed at investors and fund managers that are looking for flexibility, a vehicle that provides cost and tax efficiencies and one that gives them peace of mind knowing that their investments are in a jurisdiction which provides a strong legal environment, long-term stability and easy access.
Legal Framework
The Mauritius VCC Fund is a corporate vehicle designed to manage both traditional and alternative funds, including private equity. A VCC Fund may be set-up as a company incorporated under the laws of Mauritius or through re-domiciliation of an existing foreign investment structure from the jurisdiction of origin. It can be setup as:
- A standalone or umbrella with sub-fund structure
- A structure for both Collective Investment Schemes (CIS) and Closed Ended Funds (CEF)
- A flexible vehicle that can hold single assets or as an alternative to partnerships and standard corporate vehicles
A single global business license is required by the VCC Fund, allowing the whole structure to benefit from the offshore facilities that Mauritius offers, including 45 Double Taxation Treaties along with 29 Investment Promotion & Protection Agreements.
A VCC Fund may also appoint the same board of directors and administration team – including CIS Manager, CIS Administrator, custodian, money laundering and reporting officer and compliance officer – to act for all of its SPVs and sub funds, bringing operational cost savings as a result.
Benefits of a Mauritius VCC Fund
- The VCC Fund's share capital composition is flexible and confidential. The regime allows for flexibility regarding creation of shares, redemptions, distribution of dividends and winding-up of individual sub-funds.
- There is no requirement to have the register of shareholder and the audited accounts filed as publicly available records.
- A sub-fund of a VCC Fund may participate in both vertical structures (as a feeder fund or a master fund) and horizontal structures (by investing its assets into another sub-fund of the same VCC Fund).
- A sub-fund may also apply to have a distinct legal personality from that of the VCC Fund.
How can Amicorp help?
Amicorp can assist with the formation and management of new VCC Fund structures in Mauritius and in Singapore, as well as with the re-domiciliation of existing foreign structures into both jurisdictions. Our team offers a complete set of in-house expertise covering the legal structures, accounting/NAV services and domicile CIS Managers. Our model is a cost-effective, flexible and plug-and-play solution to help fund managers and investors take advantage of the benefits that VCC Funds can offer.
If you would like to find out more about the Mauritius or Singapore VCC Fund structure, or how Amicorp can help with that, contact our team here.
