PROTECTED CELL COMPANY

Some individuals may be looking for a form of added security, without compromising the flexibility of international investment structuring. One consideration may be to look towards establishing a Protected Cell Company (or PCC). This Special Purpose Vehicle (or SPV) was introduced in the year 2000, under the Protected Cell Companies Act 1999 of Mauritius. It allows for the lawful separation of assets owned by each cell of the company. This separation in turn, limits liabilities to each cell, for example, in case of bankruptcy of a specific cell, creditors shall utilise the assets of that specific cell, and not of the others within the structure in order to honour its liabilities.

A PCC can be incorporated in Mauritius as a Global Business Company (GBC), and benefit from Double Taxation Avoidance Agreements in force. As stated above, existing foreign and existing Mauritian companies may also apply and convert into PCCs. The creation of a new Cell for a PCC is subject to the approval of the Financial Services Commission (FSC) of Mauritius.

To note, a PCC must have the words “PCC” or “Protected Cell Company” at the end of its name, with each cell having its own distinct name. It could be the first, last or full name of the holder of the shares of that particular cell, or it could be a number and/or alphabet that will provide for the preservation of the holder’s anonymity. Additionally, each Cell would be required to be licenced by the Regulator.