Labuan Protected Cell Company License Acquisition Support

Bona Trust Corporation provide Protected Cell Company License Acquisition Support Service.

Protected Cell Company


1. What is Protected Cell Company ?

Protected Cell Company (“PCC”) is a single legal entity comprised of a core, and a number of  “cells”. This structure creates a legal segregation of the PCC’s assets and liabilities into a number of different cells and a central core.

Each cell is completely independent and separate from the other cells, as well as from the core of the company. This limits damage from litigation and financial impacts to a single cell and protects the core business.

Protected Cell Company

A Labuan PCC shall only conduct:
  • Labuan captive insurance business, on such terms as provided under Part VII of the Labuan Financial Services and Securities Act 2010 (LFSSA);
  • Labuan captive takaful business, on such terms as provided under Part VII of the Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA); or
  • business as a mutual fund as defined under Part III of the LFSSA; and
  • business as an Islamic mutual fund as defined under Part IV of the LIFSSA.

2. Capital Requirements

The following lists the capital requirements of a Labuan captive insurance/takaful business:

Capital Requirements

  • Capital requirement unimpaired by losses of RM500,000 applies to the Labuan PCC as a whole.
  • Cells are required to remain solvent at all times as specified in the Guidelines on the Establishment of Labuan Protected Cell Companies issued by Labuan FSA.
  • The establishment of working funds for cells may be achieved through the issuance of cell shares by the Labuan PCC.

A Labuan PCC undertaking mutual funds/Islamic mutual funds must have sufficient capital/working funds that commensurate or are in accordance with its operations and activities.


3. Corporate Governance and Compliance to Labuan Laws

A Labuan PCC and its cell(s) shall observe all statutory requirements under any relevant laws, policies and/or guidelines issued by Labuan FSA or the jurisdictions in which it has operations, including corporate governance and market conduct as a minimum requirement and commensurate with the nature and complexity of its operations from time to time.

The board and senior management of a Labuan PCC shall:

Corporate Governance and Compliance to Labuan Laws

  • be responsible to ensure compliance with the regulatory and corporate governance requirements at all times
  • keep the funds for cell assets separate from the general assets; and
  • keep the cell assets and liabilities attributable to each cell separate from other cells.

4. Reporting Requirements

Reporting Requirements

  • submit an audited consolidated financial statement of the Labuan PCC and its cell(s) within six (6) months after the close of each financial year
  • prepare separate sets of financial statements for each cell, which shall be made available for inspection or examination by Labuan FSA; and
  • submit other statistics and information as may be required by Labuan FSA from time to time.
  • Notwithstanding the above, for a Labuan PCC undertaking mutual fund or Islamic mutual fund activities, a copy of the cell’s financial statements should also be extended to each of the investors of the respective cells.

5. Labuan FSA Annual and Conversion Fees

A Labuan PCC is required to pay the following annual fees to Labuan FSA on or before 15 January of each year.

Type of FeesAmount
Insurance and Takaful
On the general assets of the Labuan PCC (core)RM30,000USD9,500
On each cellRM10,000USD3,000
Mutual Funds and Islamic Mutual Funds
On the general assets of the Labuan PCC (core)RM5,000USD1,500
On each cellRM2,000USD600

Should you have any queries, please do not hesitate to contact us.


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