Protected Cell Company (PCC)

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The Protected Cell Companies Act in Maurtius allows for the segregation of assets and related liabilities within a company into cells. A Protected Cell Company (PCC) is a vehicle that authorises the separation of assets owned by each cell of a company. A PCC is a corporate structure, limited by shares, which consists of a core (“non-cellular”) and an its cells (“cellular”). In this structure, each cell is isolated from one another and operates separately. PCC allow for the segregation of risks, as well as assets and liabilities, of different individuals and/or corporate entities under a shared structure. A PCC has different cells but they are not legal entities, unless it opts so.

PCC structure - Activities:
 

• Asset holding

• Structured finance businesses

• Collective investment schemes and close-ended funds

• Insurance business

• Real Estate Development

• External pension scheme

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There is no minimum capital requirement for a PCC and for each cell within the PCC. However, on a case-to-case basis and depending on the nature of the business, the Financial Services Commission (FSC) may prescribe certain capital requirements. In the case of insurance or re-insurance business, each cell must abide by the relevant insurance legislation regarding the requirement of minimum paid up capital.

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A Protected Cell Company can be incorporated in Mauritius as a Global Business Company (GBC), and benefit from Double Taxation Avoidance Agreements in force. A foreign or existing Mauritian company may also apply and convert into a PCC.

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Taxation

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A Protected Cell Company is liable to tax as a single legal entity.

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As a GBC, a PCC is liable to income tax at the rate of 15%. However, certain categories of income such as dividend from foreign sources and interest from foreign sources are subject to an 80% exemption. Therefore, the effective rate on these incomes does not exceed 3%.

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In addition, there are no withholding taxes on interests and dividends. As such, a PCC may also claim credits for actual taxes suffered against the nominal tax payable, such as for withholding taxes that are retained in their source countries.

 

Benefits:

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• Segregation of assets and liabilities into individual cell

• Each cell is protected from the other cells

• Each cell operates independently

• Better risk management for investment managers and investors

• Less expensive to administer than would be the case in a company with multiple subsidiaries

• Treated as a single legal entity for taxation purposes which can have tax benefits 

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