Thinking of starting a fund management company in Singapore? It's a smart move. Singapore is one of the top financial hubs in Asia, and its regulatory framework provides a solid foundation for financial businesses. With a growing economy, a robust legal system, and investor confidence, it’s an ideal environment for fund managers to thrive. But, how do you get started? Let’s dive into the process on how to establish a fund management company in Singapore, step-by-step!
First things first – you need to decide on your business structure. Fund management companies in Singapore are typically set up as Singapore Private Limited Companies. Why? Because it offers flexibility, limited liability, and ease of management.
Unlike other jurisdictions, Singapore’s laws allow foreign owners to have full ownership of a private limited company. This means you don’t need a local partner to start your fund management company here!
Once you've decided on the structure, it’s time to incorporate your company.
To formally establish your fund management company, you’ll need to register with ACRA, the national regulator. ACRA manages the registration of companies in Singapore, and you can complete the entire application online via the BizFile+ portal.
You’ll need the following to submit your application:
Don't worry about the paperwork – Singapore’s online registration system is user-friendly and quick!
Here’s a key thing to remember – while there’s no minimum paid-up share capital for most Singapore companies, fund management companies regulated by the Monetary Authority of Singapore (MAS) have certain capital requirements.
Once your company is operational and under MAS’s regulation, you’ll need to ensure your paid-up capital meets their requirements. These may vary depending on the type of fund management services you offer, such as:
In any case, these capital requirements are typically higher than those for other types of businesses. MAS enforces these standards to ensure stability and investor protection in the fund management sector.
You’re now officially registered! But you still need to focus on the operations of your fund management company. Here’s what you need to do next:
To manage funds in Singapore, you need to apply for the appropriate licence from the Monetary Authority of Singapore (MAS). The MAS has different licences depending on the type of fund management activities you plan to conduct:
If you're a regulated fund manager, you must appoint external auditors. Your audited financial statements need to be filed with both ACRA and MAS. This ensures compliance with accounting standards and transparency.
Whether you focus on private equity, hedge funds, or other investment types, define your investment strategy. Ensure it aligns with MAS guidelines and provides clear documentation on how you manage client assets.
Set up internal controls and risk management procedures. MAS will want to know how you plan to manage risks associated with your investments. Compliance is crucial to maintaining your licence and reputation.
Once the business structure is in place, you’ll need to decide how to issue company shares. Typically, fund management companies issue one class of ordinary shares that carry both voting and economic rights. This allows you to maintain control over the company while offering investors the opportunity to participate in its financial success.
After the company is up and running, you must maintain rigorous compliance with local regulations. Here’s what to keep in mind:
Once you’ve set up everything, including the capital structure, team, compliance framework, and licences, you can officially start managing funds. Whether you focus on hedge funds, venture capital, or other assets, ensure that your operations comply with the latest MAS regulations.
The fund management market in Singapore is highly competitive, but it’s also a land of opportunities. The key is to keep up with industry trends and regulatory updates, which are constantly evolving.
At Simplified Asia, we specialise in helping businesses like yours establish a robust financial foundation. Whether it’s setting up your company structure, obtaining the necessary licences, or ensuring ongoing compliance with MAS regulations, we’re here to guide you every step of the way.
Our team can help you navigate the complex process of starting a fund management company in Singapore, ensuring you meet all regulatory requirements. Ready to take the plunge into Singapore's vibrant fund management sector?
