PROTECTIVE CELL (PCC)

  • A Protected Cell Company (PCC) may be incorporated as a 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'. The cells of a PCC may comprise:
    • A single core cell for holding non-cell assets or general assets
    • Any number of cells with the intention of segregating and protecting the assets of each respective cell
  • Neither the core cell 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 Protected Cell Company.

Uses of PCC

A PCC therefore has the ability to hold assets or investments divided into a number of classes to cater for the different objectives of different individual investors, while at the same time preserving the independence of each cell.

  • A Labuan Protected Cell Company can be designed to conduct:
    • Insurance business
    • Captive Insurance business
    • Mutual Fund business
  • Insurance, Captive and Mutual Fund Business may be conducted under either the conventional system or in accordance with Islamic principles, particularly Takaful and Captive Takaful business.

Application and Registration Requirements

  • Protected Cell Companies intending to conduct Insurance or Captive Insurance business or Mutual Fund business are subject to the:
    • Guidelines on Application of Labuan Insurance and Insurance-Related Activities
    • Guidelines on Captive Insurance Business in Labuan IBFC
    • Guidelines on Mutual Funds in Labuan IBFC
  • Application to establish a Protected Cell Company must be done through a licensed Trust Company in Labuan.
  • Prior to the incorporation or conversion to Protected Cell Company, the applicant must obtain a licence and approval/consent from The Authority to conduct the Insurance, captive insurance or mutual fund business.
  • Unless the application relates to a Labuan Company intending to convert to a Protected Cell Company and which already holds the relevant license or registration, further supporting information and documentation will be required, depending upon the type of licence or registration sought.
  • Once approval/consent has been given to the applicant to operate as a Protected Cell Company, a Labuan Company may be incorporated by submitting the following to The Authority:
    • the Memorandum and Articles of Association and relevant fees
    • any other documents and information as may be required by The Authority for registration
    • Forms relating to the appointment of director.
  • With regard to the documentation and information requirements on incorporation, please refer to the Labuan Company Registration Procedure.