How to set up a venture capital fund in Singapore

1-Submit the forms for operating a Venture Capital Fund Manager to the MAS. This form has the details of the business, team, nature of the investment, sources of fund, history of the company, etc 2-Identify the amount of assets under the funds management. Venture Capital Fund Management Companies do not have a minimum value for their assets. 3-Establish the number of Directors and their experience - VCFM should have a minimum of two directors, one of them should work full-time and should also be a Singapore resident. 4-Minimum Base Capital Requirements - Venture Capital Fund Management Company does not have exact minimum base capital criteria. 5-Investor Type - VC funds can handle both Institutional and Accredited funds only but not Retail. 6-Investment Type - 80 percent of this fund's portfolio must be in firms that are less than ten years old. 7-The number of investors - Venture Capital Fund Management Company handles unlimited numbers of accredited investors or even Qualified investors.

How can I create a VC fund in Singapore?

VC funds can be created using the following steps in Singapore: 1-Submit the forms for operating a Venture Capital Fund Manager to the MAS. 2-Identify the amount of assets under the funds management. 3-Establish the number of Directors and their experience 4-Identify the minimum base capital requirements - Venture Capital Fund Management Company does not have exact minimum base capital criteria. 5-Identfy the investor type

How can I create a VC fund in Singapore?

Startup investors generally expect a 20% or more yearly return on their investment, and will take this number into account when determining how much to offer you for your business. A lender will typically charge 7.9-19.9%.

How do I open a venture fund in Singapore?

Submit the forms for operating a Venture Capital Fund Manager to the MAS. Identify the amount of assets under the funds management. Establish the number of Directors and their experience Identify the minimum base capital requirements - Venture Capital Fund Management Company does not have exact minimum base capital criteria. Identfy the investor type

What is the minimum investment for a VC fund?

Typically VC funds tend to be around $1 million or more but can be as low as $250,000. A typical minimum investment in a VC fund varies between $1 to $5 million.

How many venture capital firms are there in Singapore?

There are currently over 100 VC firms currently active in Singapore.

Are private equity funds regulated in Singapore?

Yes, equity funds in Singapore are regulated by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (Cap. 289) (SFA).

What is 13X Singapore?

13X is formally know as the Enhanced-Tier Fund Tax Exemption Scheme (Section 13X of the Income Tax Act). 13X applies to funds with a minimum size of S$50 million that are managed or advised by a Singapore fund manager, which can be an exempted SFO or a licensed multi-family office.

What is VCC Singapore?

The Variable Capital Company (VCC) is a new type of corporate structure for investment funds VCCs are governed by the Variable Capital Companies Act which took effect on 14 Jan 2020. The VCC will complement and go alongside the existing suite of investment fund structures available in Singapore.

What is a mas Licence?

The MAS licence is required in order to conduct regulated financial services activities. MAS Licenses are made up of either a Capital Markets Services or Financial Advisers License .

Belaws Home ›› Sinagpore ›› Blog ›› Singapore Court of Appeal issues new guidance on private actions for PDPA violations

Singapore Court of Appeal issues new guidance on private actions for PDPA violations

The Personal Data Protection Act 2012 (“PDPA”) sets out the obligations of businesses and organisations in relation to the collection, use and disclosure of personal data, with the Personal Data Protection Commission (“PDPC”) being the competent authority.

The PDPC is able to issue, among other things, compliance directives and impose financial penalties known as public enforcement actions. In addition, companies or individuals may bring private actions against the offending organisation if they have suffered loss or damage in connection with a breach of the PDPA.

However, not all forms of loss give rise to a private right of action under the PDPA. In a recent decision, the Singapore Court of Appeal has clarified what can constitute loss or damage under the PDPA, thereby clarifying the right to a private action under the PDPA.

Legislative history sum-up

This court case concerns an investor who was the victim of a PDPA breach by a fund manager who disclosed his personal data when he changed jobs to join competitors.

The fund manager’s former employer and the investor in question brought a civil action against the manager under what was then Section 32 of the PDPA. Ultimately, the Singapore High Court held that the investor had not suffered “loss or damage” giving rise to the right of private action under Section 32 and that emotional distress and loss of control of personal data did not fall within the scope of such “loss or damage”.

The case then went to the Singapore Court of Appeal, which provided much-needed clarification on what constitutes “loss or damage”, and thus when a person is entitled to bring a civil action under the PDPA.

Singapore Court of Appeal’s new guidance on the right to private action under the PDPA

Through a broad interpretation of the PDPA’s private enforcement provisions, taking into account its overall purpose, the Singapore’s Court of Appeal held that emotional distress falls within the category of “loss or damage” under the PDPA, but not mere loss of control of personal data.

This new guidance from the Court of Appeal is of the utmost importance for individuals and organisations that process or manage personal data, as it clarifies the circumstances that can lead to a private civil action in the context of a breach of the PDPA, thereby completing the range of defences available to victims, which until now has consisted mainly of public enforcement actions.

In addition, this decision will have an impact on the field of PDPA at the jurisdictional level but also at the level of companies, organisations and individuals who have to manage personal data in one way or another:

Indeed, by recognising that emotional distress related to a breach of the PDPA gives rise to a private civil action, the Singapore Court of Appeal sets the tone for future decisions, showing an inclination to seriously defend personal data.
On the other hand, this decision also means that all entities that have to process personal data must ensure that they have appropriate safeguards in place to prevent their misuse, as the availability of enforcement measures is now clarified at the private level, which means that the scope of protection is now generally broader and more effective.

Additional important amendments to the PDPA to note

Following amendments to the PDPA, with effect from 1 October 2022, the maximum financial penalty that can be imposed on an organisation by the Personal Data Protection Commission of Singapore (PDPC) has been increased to 10% of the organisation’s annual turnover in Singapore, if its annual turnover exceeds S$10 million, and to S$1 million in all other cases. Previously, the maximum penalty was S$1 million.

Question about the PDPA in Singapore?

If you need more information about the PDPA in Singapore, why not talk directly to one of our experts.

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