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:
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.
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, 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.
The following lists the capital requirements of a Labuan captive insurance/takaful business:
A Labuan PCC undertaking mutual funds/Islamic mutual funds must have sufficient capital/working funds that commensurate or are in accordance with its operations and activities.
A Labuan PCC and its cell(s) shall observe all statutory requirements under any relevant laws, policies and/or guidelines issued by Labuan FSA or the jurisdictions in which it has operations, including corporate governance and market conduct as a minimum requirement and commensurate with the nature and complexity of its operations from time to time.
The board and senior management of a Labuan PCC shall:
A Labuan PCC is required to: