Open a Labuan Protected Cell Company

Investors can opt to open a Labuan Protected Cell Company (PCC) as an alternative to standard corporate structures. The PCC operates as a limited liability company with the ability to create “cells,” which are divisions within the company that allow for the segregation and protection of assets. Our specialists in company formation in Labuan can help entrepreneurs incorporate this type of structure or convert an existing company into a PCC.

Structure and functions of a Labuan Protected Cell Company

The structure of the PCC is as follows:

• Core – the central part of the PCC that holds the general assets. It is the main entity that can engage in various activities not tied to the individual cells;
• Cells – a Labuan Protected Cell Company can have any number of cells, each designed to segregate and protect the assets of that particular cell. 

The Labuan Protected Cell Company is classified as a limited liability company. The core and the individual cells are not considered separate legal entities in a traditional sense. However, each cell is treated as a separate entity regarding its assets and liabilities. 

A Labuan PCC is limited to conduct only certain types of business activities, namely:

• Labuan captive insurance business – this refers to insuring the risks of the owner or of companies in the same group (captive insurance);
• Labuan captive takaful business – is a type of insurance that is specifically designed for companies or groups to manage their risks while following Islamic principles;
• Mutual funds;
• Islamic mutual funds – the Labuan Protected Cell Company can also conduct business adhering to Islamic investment principles and guidelines.

Our team can help you open an offshore company in Labuan, depending on your needs.

Regulatory requirements of a Labuan Protected Cell Company

Investors must comply with the regulatory requirements when opening a Labuan Protected Cell Company. Both the Labuan Protected Cell Company and its cells must adhere to The Labuan Financial Services Authority (Labuan FSA) regulations and guidelines. This responsibility falls on the board of directors and the company’s senior management.

One of the most important aspects of this structure is that the cell assets must be kept separate from the general assets of the Labuan Protected Cell Company.

In terms of capital requirements, a Labuan Protected Cell Company involved in captive insurance or takaful must have at least RM 500,000 in unimpaired capital. This means the capital must remain intact and not be negatively affected by any financial losses the company may experience. The cells within the Labuan Protected Cell Company must remain solvent at all times. Cells can raise funds through the issuance of cell shares, which allows each cell to generate its own capital and provide it with the necessary resources to operate. For PCCs involved in mutual funds or Islamic mutual funds, the company must have enough capital to support its specific business operations.

Our specialists in company incorporation in Labuan will ensure that the PCC complies with all the regulatory requirements.

Statistics about companies in Labuan

Investors looking to set up a company in Labuan can find the following statistics useful, as they refer to the number of companies incorporated in the jurisdiction in 2025:

• There were 659 new incorporations and registrations (+5.1%);
• 60% of new companies registered in Labuan come from the Asia-Pacific region (18% from the Far East);
• 14% of the new companies originate from Europe;
• Only 5% of the new companies are from America.

If you are interested in more details about the Labuan PCC or other Labuan offshore entities, do not hesitate to contact our specialists.