A protected cell company (PCC) is a fairly new corporate form; the concept originated in Guernsey in 1997. Since then, protected cell companies have become available in a greater number of offshore jurisdictions.
In Seychelles, Protected Cell Companies (PCC) are formed under the Protected Cell Companies Act, 2003. A PCC is a Seychelles domestic company that has the right to create one or more identifiable cells so as to segregate and protect cellular assets as permitted under the Act. In simple terms, a PCC is a company which – in addition to its main, "core" level – contains a number of segregated parts, or "cells". Each cell is legally independent and separate from the others, as well as from the "core" of the company.
The undertakings of one cell have no bearing on the other cells. Each cell is identified by a unique name, and the assets, liabilities and activities of each cell are ring-fenced from the others. If one cell becomes insolvent, creditors only have recourse to the assets of that particular cell and not to any other.
Protected cell companies are a welcome arrival for businesses that would have previously chosen a rent-a-captive scheme over the (more costly) formation of an in-house captive insurance company for the purpose of self-insurance.
Protected cell companies are used to securitize insurance risk against catastrophic losses, for example; their very structure also makes them an ideal entity for the cost-effective operation of umbrella mutual funds.
Key Features
| General |
| Type of entity: |
PCC |
| Type of law: |
Hybrid |
| Our time to establish a new company: |
2 weeks |
| Government application fees (excluding taxation): |
US$200 |
| Government Incorporation Fees |
US$1,000 |
| Tax Exemption |
- Exemption of stamp duty in respect of properties, shares and all transactions relating to the business of a PCC
- Not liable for business tax on income derived outside Seychelles
|
| Number of Cells |
Unlimited |
| Continuation from IBC |
Yes |
| Registered Office |
In Seychelles |
| Share capital or equivalent |
| Standard currency: |
US$ |
| Permitted currencies: |
Any except Rs |
| Minimum paid up: |
10% of the Authorised capital |
| Shares types |
Cellular and non-Cellular |
| Directors |
| Minimum number: |
Two |
| Corporate Director |
Not Allowed |
| Local required: |
No |
| Publicly accessible records: |
Yes |
| Location of meetings: |
Anywhere |
| Members |
| Minimum number: |
Two |
| Publicly accessible records: |
No |
| Location of meetings: |
Anywhere |
| Company Secretary |
| Required: |
Yes (must be a Seychelles Corporate Service Provider) |
| Annual Accounts, Audit, Return |
| Requirement to prepare: |
Yes |
| Audit requirements: |
Yes |
| Requirement to file accounts: |
Yes, to FSA only |
| Requirement to file annual return: |
Yes, to FSA only |
| Annual Government Tax |
US$1,000.00 |
| Permitted Business Activities |
- Insurance
- Mutual Funds
- Any other business activity approved by FSA
|
|
Incorporation costs (1st year)
|
|
Application Government Fees
|
$200
|
|
Corporate Secretary, Registered Office, Keeping company registers
|
$400
|
|
Incorporation Fees
|
$700
|
|
Incorporation Government Fees
|
$1000
|
|
TOTAL (1st year)
|
$2300
|
|
Annual costs
|
|
Annual Government fees
|
$1000
|
|
Annual fee for Corporate Secretary, registered Office, Keeping of Company Registers
|
$700
|
|
Government Fee for Filling of Annual Returns
|
$200
|
|
Filling of Annual Returns
|
$200
|
|
TOTAL per annum from 2nd year
|
$2,100
|
|
Others
|
|
1.Apostille
|
$100
|
|
2.Certificate of good standing
|
$150
|
|
3.Change of Company Name
|
$200
|
|
4.Change of Directors
|
$100
|
|
5. Share Transfers
|
$100
|
|
6. Courier dispatch service
|
$80
|
|
7. Bank Account with Barclays Bank
|
$400
|
