A PCC is a corporate structure in which a single legal entity is comprised of a core and several non-core cells, and the assets and liabilities of each non-core cell is legally protected from the failure of another non-core cell.
PCCs in Mauritius are governed by the Protected Cell Companies Act 1999 and are widely used by collective investment schemes, insurance companies and private equity companies for the following reasons:
- Flexibility in initial asset segregation
- Unlimited number of cells can be established
- Reduced regulatory and administrative costs for setting up and operating several companies
- Regulatory compliance is for one legal entity
- Ring fencing of risks and losses.