How to Set Up a Fund Management Company in Singapore (MAS Licensing Guide)

Why Singapore Is Asia’s Leading Fund Management Hub

Singapore has established itself as Asia’s premier asset and fund management jurisdiction, combining:

• A globally respected regulator (Monetary Authority of Singapore)
• Political and legal stability
• Strong rule of law
• Favourable tax regimes
• Deep institutional capital pools
• Access to Asia-Pacific investors
• Robust double-tax treaty network

Today, Singapore is home to:

• Global asset managers
• Hedge funds
• Private equity & venture capital firms
• Family offices
• Multi-asset and alternatives managers

This guide explains how to set up a MAS-regulated fund management company, from choosing the right license to achieving post-approval operational readiness.

1. Who Needs a MAS Fund Management License?

You need MAS authorisation if you manage assets on a discretionary basis for third-party investors as a business.

This includes:

• Asset managers
• Fund managers
• Hedge funds
• PE / VC firms
• Real estate fund managers
• Family offices (in many cases)

2. MAS Licensing Options for Fund Managers

MAS offers two main regulatory pathways:

2.1 Registered Fund Management Company (RFMC)

Best for:

• Smaller or early-stage managers

Key Features

• Maximum 30 qualified investors
• Maximum S$250m AUM
• No retail investors
• Lighter regulatory burden

Capital

• Minimum S$250,000 base capital

Pros

• Faster approval
• Lower ongoing costs
• Ideal for boutique managers

Cons

• AUM and investor caps
• Not suitable for large-scale growth

2.2 Licensed Fund Management Company (LFMC)

LFMCs are split into two sub-categories:

A. LFMC – Accredited/Institutional Investors (A/I)

• No AUM cap
• Unlimited accredited & institutional investors
• No retail investors

B. LFMC – Retail

• Can manage retail funds
• Heaviest regulatory burden
• Highest governance & capital requirements

Capital

• Minimum S$250,000–S$1m+, depending on activities

Pros

• Scalable
• Suitable for institutional fundraising
• High credibility

Cons

• More complex licensing
• Stronger substance & compliance expectations

3. RFMC vs LFMC: Quick Comparison

• ‍Feature | RFMC | LFMC (A/I) | LFMC (Retail)
• AUM Cap | $250m | None | None
• Investor Limit | 30 | Unlimited | Unlimited

Retail Investors

❌

❌

✅

Regulatory Burden

Low

Medium

High

Typical Use

Boutique managers

Institutional funds

Retail platforms

4. MAS Licensing Process: Step by Step

Step 1: Define Your Business Model

MAS requires clarity on:

• Asset classes
• Investment strategies
• Target investors
• Distribution model
• AUM projections
• Delegation/outsourcing
• Risk & compliance structure

Step 2: Meet Substance & Staffing Requirements

MAS places strong emphasis on substance.

Minimum Expectations

• At least 2 directors (one resident in Singapore)
• At least 2 full-time investment professionals
• Dedicated compliance & risk function (in-house or outsourced)
• Local office presence

Step 3: Prepare the Application Dossier

The application includes:

Key Documents

• Regulatory business plan
• Investment management agreements
• Compliance manual
• Risk management framework
• AML/CFT policy
• Code of conduct
• Outsourcing agreements
• Financial projections (3 years)
• Fit & proper declarations
• Organisational chart

Step 4: Submit Application to MAS

MAS will:

• Review documentation
• Issue clarification questions
• Assess governance, experience & controls
• Evaluate operational readiness

Step 5: MAS Approval

Once satisfied, MAS grants:

• RFMC registration or LFMC licence

5. Typical Licensing Timeline

• Preparation | 1–2 months
• MAS Review | 4–6 months
• Approval | ~6 months
• Post-License Setup | 1–2 months
• Go-Live | ~6–8 months total

Complex strategies or retail permissions may take longer.

6. Post-License Obligations for MAS Fund Managers

MAS authorisation is not the end — firms must implement operational readiness before managing assets.

Key Ongoing Obligations

• Ongoing compliance monitoring
• Risk management & reporting
• AML/CFT monitoring
• Annual regulatory filings
• Independent audit
• Incident & breach reporting
• Business continuity & IT resilience

MAS is particularly focused on risk governance and operational controls.

7. Technology Stack Required for MAS-Regulated Fund Managers

MAS expects firms to operate with institutional-grade systems, especially as AUM grows.

Essential Systems

• Digital investor onboarding & AML/KYC
• Client/investor classification
• Portfolio management system (PMS)
• Multi-custodian data aggregation
• Reconciliation engine
• Risk & exposure analytics
• Performance measurement
• Compliance monitoring tools
• Document management & audit trails
• Investor reporting & portal
• Fee & expense calculation engine
• IT governance & cybersecurity controls

Spreadsheets alone are not acceptable for regulated fund managers.

8. Common Mistakes MAS Applicants Should Avoid

• Weak substance in Singapore
• Insufficient investment team experience
• Outsourced compliance without oversight
• Poor risk management documentation
• No scalable technology stack
• Underestimating post-license obligations

9. Why MAS-Regulated Firms Choose Reluna

Reluna provides a single, integrated operational platform aligned with MAS expectations and global best practices.

Reluna includes

• Digital onboarding & AML/KYC
• Investor classification
• Portfolio & fund management system
• Multi-custodian data aggregation
• Reconciliation engine
• Risk & exposure analytics
• Compliance workflows
• Document vault & audit trail
• Fee & performance engine
• Investor reporting portal
• Multi-entity & multi-fund support

Why this matters

• Faster operational readiness
• Lower operational risk
• Clean, reconciled data
• Strong governance evidence
• Scalable from RFMC → LFMC
• Easier audits & regulatory reviews

Reluna allows Singapore managers to operate with global-institutional standards from day one.

10. Next Steps: Launch Your Singapore Fund Management Company

Singapore remains one of the most attractive jurisdictions globally for asset and fund managers — but success depends on choosing the right license and building the right operational infrastructure.

👉 Request a Reluna demo to see how we help MAS-regulated fund managers achieve full operational readiness and scale efficiently.