A Protected Cell Company (PCC) is a flexible and innovative corporate structure in Mauritius, ideal for businesses that require legal segregation of assets and liabilities within a single entity. Introduced under the Protected Cell Companies Act 1999, a PCC allows the formation of independent “cells” under a core legal entity, each with its own assets, operations, and risk profile, but without needing to incorporate multiple companies.
It is widely used in insurance, collective investment schemes, structured finance, family office services, and multi-client investment platforms.
Structure of a PCC
- Core: The central legal body that holds the company’s general assets and liabilities not attributable to any cell.
- Cells: Legally segregated units with distinct assets and liabilities, each identified by a unique name or reference.
- The assets and liabilities of each cell are statutorily ring-fenced, meaning creditors of one cell cannot claim against the assets of another.
Key Benefits
- Asset protection: Each cell operates independently, ensuring insulation from the liabilities of other cells.
- Cost efficiency: Avoids the need to create multiple entities while achieving similar separation of risk and function.
- Tax efficiency: A PCC registered as a Global Business Company (GBC) benefits from Mauritius’s low tax regime and treaty network.
- Regulatory clarity: Recognised and supervised by the Financial Services Commission (FSC), ensuring credibility and oversight.
Common Uses
- Insurance captives and reinsurance pooling structures
- Collective Investment Schemes (CIS) and umbrella funds
- Multi-client wealth structures managed under one legal platform
- Asset holding platforms for segregated real estate or alternative investments
- Securitisation vehicles or structured finance deals with multiple tranches
Regulatory Requirements
- Must be incorporated under the Companies Act 2001 and licensed by the FSC
- Must clearly distinguish core assets from cellular assets
- Statutory accounts must reflect segregated balances for each cell
- Subject to the Companies (PCC) Regulations, ensuring transparency and legal clarity
Why Mauritius for PCC?
- Robust legal protection for segregated portfolios
- Internationally recognised regulatory regime
- Effective dispute resolution and legal infrastructure
- Ideal jurisdiction for African and Asian investment structuring
- Access to DTAAs, 3% effective tax rate, and no capital gains tax