Protected Cell Companies
A Labuan protected cell company (PCC) is an alternative solution to standard corporate structures. It may be incorporated as a new Labuan company or converted from an existing Labuan company. A PCC is a limited liability company with a legal entity that has the ability to form “cells”. A PCC may comprise:
Neither the core nor the individual cells created are separate legal entities but nonetheless, each cell is legally separated from any other cell and each has sufficient attributes to carry on business independently under the “umbrella” of the Labuan PCC.
As one of the innovative business structures, PCC may also be structured to further enhance the insurance and mutual funds industries. In particular, PCC as insurance captives are typically use to insure risks which are difficult to obtain insurance covers from the market. They can also be used as an efficient risk management tool which operates similar to a protected insurance set-up.
- A core for holding non-cell assets or general assets; and
- Any number of cells with the intention of segregating and protecting the assets of each respective cell.
As one of the innovative business structures, PCC may also be structured to further enhance the insurance and mutual funds industries. In particular, PCC as insurance captives are typically use to insure risks which are difficult to obtain insurance covers from the market. They can also be used as an efficient risk management tool which operates similar to a protected insurance set-up.
