Protected Cell Companies

  • A Protected Cell Company (PCC) is one of the most popular companies offered in major offshore financial centres. A Protected Cell Company is able to segregate its assets into different cells (portfolios) within that company and protects each cell from the liabilities of any other cell. This structure allows for the segregation of risks, assets/liabilities of different individuals and/or corporate entities under a shared structure.

  • This legal segregation is often described as ‘ring fencing’ and is the main attraction of PCCs, thus making a PCC a very useful vehicle for any investment entity with various investment portfolios, where each has its own investment strategy and risk profile. The PCC also simplifies administration and reduces costs of operation. A PCC is also attractive when investors are not common in each portfolio.

  • Common uses of PCC/SPC                                                       
    Insurance business
    Collective investment funds
    Asset holding

    It is necessary that such companies require applicable licences (like insurance licence or a fund licence) in respect to the activity or activities to be conducted by the PCC in accordance with the laws of the jurisdiction where they conduct their business.

    Popular jurisdictions for setting up PCC/SPC                               
    Cayman Islands