Protected Cell Company (PCC)

Mauritius is one of the few jurisdictions which provides for a legal structure which can hold both cellular and non-cellular assets.  The Protected Cell Company Act of 1999 provides the legal framework of a PCC..  This legislation provides for added flexibility and security for international investment structuring.  It provides that a GBC1 can create cells within its capital for the purposes of segregating the assets within that cell from claims related to other assets.  The cellular assets attributed to a cell will only be affected by the liability of the company arising from transaction attributable to that particular cell.   Therefore, each cell and the assets and liabilities under its responsibility are separate from the other cells within the same company.

PCCs provide several advantages:

  • A range of possibilities for businesses in international insurance, collective insurance schemes, closed-end funds, collective investment schemes, structured finance and asset holding.
  • The one legal company can separate its assets into different cells and each cell remaining distinct from each other.
  • There are no limits on the number of cells that can be created, each cell having its own name and/or designation.
  • Is a great tool for those companies involved in life insurance, general insurance, and re-insurance. Composite insurers, that is when the assets of the life insurance business have to be legally separated from those of the non-life business a PCC allows for such separation.
  • It is an attractive tool for Global Business funds with each cell offering specific types of investment products.
  • It obtains a favourable tax treatment under the Double Taxation Avoidance Agreements whilst being taxed as a single entity.
  • A PCC can be registered in Mauritius by way of continuation of a company incorporated in another jurisdiction.