A Protected Cell Company (‘PCC’) is a single legal structure that can segregate its assets between different cells within the PCC.
A Protected Cell Company (‘PCC’) is a single legal structure that can segregate its assets between different cells within the PCC. It is because of this segregation that the assets of each cell are deemed to be completely distinct from each other and as thus creditors of a particular cell have recourse only to that cell. Therefore, each cell has its own responsibilities in terms of its assets and liabilities and they are separate from the other cells within the PCC.
The Protected Cell Companies Act 1999 (‘PCC Act’) has been amended until recently to broaden the applications of PCCs in Mauritius. Subsequently, regulations were created under section 4(3) of the said Act to cater for the possibility for a global business to be converted into a PCC.
INCORPORATION AND REGISTRATION
A PCC may carry only such activities as stated under the PCC Act and they are as follows:
- Asset holding
- Collective Investment Schemes (CIS)
- Insurance business
- Specialised Collective Investment Schemes
- Structured finance businesses
A PCC needs to submit audited financial statements to the FSC. The tax return is also required to be filed together with duly executed statement of accounts.
A Protected Cell Company is under an obligation to pay taxes on a cell basis. If the said PCC is a qualified global business company, i.e. a GBL Company acting as the vehicle, then each cell would therefore be taxed at a maximum rate of 15% but with the application of the ‘Deemed Foreign Tax Credit Regulation’ it would reduce the tax liability to an effective tax rate of 3%.
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