Protected Cell Company

A PCC is a single legal entity within which several entities are established in the form of unincorporated cells for the purpose of segregating assets and business operations.

In a PCC, there is a core cell that represents the PCC’s ownership rights, and an unlimited number of cellular shares. The cellular shares are not incorporated entities. Although non-core cells are separate set of accounts in the books of the PCC, they are allowed to have their own bank accounts, voting rights and conduct activities in their own rights.

Cellular shares can only be created for a business activity that is in line with the activities stipulated in the PCC’s constitutive documents. For example, if the PCC is established as a collective investment scheme (CIS), its cells will be CIS only. You should have a look at the Variable Capital Company (VCC) if you are interested in creating an entity (umbrella type) that allows you to create unregistered as well as registered entities to conduct distinct activities (e.g CIS and Closed-end funds) under one roof.

Dividends related to shares held in specific non-core cells of a PCC may be paid out regardless of whether dividends may be paid out by other non-core cells.

From a tax perspective, the PCC is regarded as a single entity. It is subject to a flat corporate tax of 15% and enjoys several incentives to reduce such rate.