A Labuan company may be incorporated as a protected cell company (PCC). In addition, an existing Labuan company can be converted into a PCC. The PCC has the ability to form “cells”. The cells of a PCC may comprise:
- a core for holding non-cell assets or general assets; and
- any number of cells with the intention of segregating and protecting the assets of each respective cell.
Neither the core nor the individual cells created are separate legal entities but nonetheless, each cell is legally separated from any other cell and each has sufficient attributes to carry on business independently under the “umbrella” of the Labuan PCC. A Labuan PCC may be established to conduct captive insurance / reinsurance in accordance to either conventional or Islamic principles.