Valsen Fiduciaries has been a leading partner for those who want to register a protected cell company in Labuan. PCC is one of the types of companies offered in Labuan and its popularity has been increasing at a fast pace owing to the advantages it has to offer. PPC allows structures enabling international business, wealth / asset planning and mutual fund formations.

PCC is a corporate entity, which has been designed to hold assets in one or more segregated cells. The idea behind this structure is to separate the assets in each cell from those activities in other cells with a view of protecting each cell from liabilities of any other cell. It is necessary that such companies require applicable licenses in respect to the activities to be conducted by the PCC in accordance with the laws of the jurisdiction where they conduct business.

Labuan Protected Cell Company Key Features 

  • In legal terms a Labuan PCC is a single entity.
  • Each cell has its own capital and the assets and liabilities of each cell are protected by law from all the other cells
  • Creditors of any given cell will only have access to the assets of that cell, not the other cells within the PCC.
  • Existing Labuan companies may be converted to a Labuan PCC.
  • Separate records must be kept for each cell’s assets and these records must be separate to the general assets of the PCC.
  • A Labuan PCC may only have one Board of Directors and this Board manages the affairs of the PCC as a whole. Committees may be appointed to monitor the operation of the individual cells

 Labuan PCC Legal Requirements 

Labuan

Corporate Details

General

  • Registered Office and Agent in

Yes

  • Shelf Companies Availability

Yes

Share capital or equivalent

  • Permitted currencies

Any

  • Minimum paid up

1 USD

Directors | Officers | Partners

  • Minimum number

1

  • Location of meetings

Yes/Anywhere

  • Corporate directorship allowed

Yes

Shareholders

 

  • Minimum number

1

Company Secretary

  • Required

Yes

Accounts and Audit

  • Requirements to prepare

Yes

  • Audit requirements

Yes

  • Requirements to file accounts

Trading Yes /Non Trading No

Labuan PCC Tax Treatment

  • Zero Tax on Investment Holding Company Structure
  • Low Taxation on Trading Company profits
  • No  service tax on sales transactions

Labuan PCC Duration for Set up

Set up time is only 2 weeks

Labuan PCC Distinctive Benefits

  • It provides cover for uninsurable risks and affords companies a good deal of flexibility in managing risk portfolios.
  • It’s suitable for any investors thinking of establishing a mutual fund as it allows for a wide range of diverse investments in a risk controlled environment.
  • If any individual cell becomes insolvent, this won’t affect the business as a whole or any other cells. Cells can be added when necessary without hassle and with minimum cost.
  • Operation costs are also reduced overall, helping maintain a healthy cash flow.
  • Business entities in Labuan a PCC enjoys generous tax benefits:
  • No tax whatsoever is imposed on the individual cells
  • If the PCC is a non-trading company, the company as a whole is exempt from paying tax
  • If it is a trading company, tax on profits will be paid at the rate of 3% of the net profit or a lump sum of MYR 20,000.
  • No withholding tax is paid on dividends

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service provider.