Comparison
PCC vs VCC
Protected Cell Companies and Variable Capital Companies both offer segregated cell structures, but they serve different fund and corporate purposes.
Key differences
| Attribute | PCC | VCC |
|---|---|---|
| Legal personality | One entity with statutorily segregated cells | VCC and (optionally) each sub-fund |
| Statute | Protected Cell Companies Act 1999 | Variable Capital Companies Act 2022 |
| Cell segregation | Statutory ring-fencing — cells isolated even in insolvency | Ring-fencing observed in practice |
| Tax residency | GBL regime applies (typically) | Tax-resident in Mauritius |
| Treaty access | Yes, if structured as GBL | Yes — via GBL at umbrella level |
| Licensing | PCC core licensed by FSC; cells carrying regulated activities are subject to the applicable FSC approval/licensing requirements | VCC is authorised as a VCC Fund; individual sub-funds/SPVs are separately identified/authorised within the VCC regulatory framework |
| Minimum capital | No universal minimum capital for a PCC; capital depends on the regulated activity | Per GBL requirements |
| Audit | Financial reporting and audit requirements apply in accordance with the PCC's underlying regulated activity and applicable legislation. | Audited financial statements per sub-fund |
| Cell / sub-fund cap | No statutory cap on number | None |
| Cross-investment | Not a standard feature | Permitted between sub-funds (anti-circular rules) |
| Typical uses | Captive insurance, reinsurance, multi-strategy CIS, structured finance | Multi-strategy funds, Africa-focused managers, master/feeder, family-office platforms |
| Substance | PCC core licensed; cell approvals as applicable to regulated activities; statutory ring-fencing observed | Ring-fencing observed; FSC reporting at umbrella and sub-fund level |
| Reporting | FSC and prudential reporting; audit requirements per applicable regime | FSC reporting; FATCA/CRS at investor level per sub-fund |
| Setup time | Indicative establishment timeline: approximately 2–3 months, subject to regulatory approval, completeness of documentation and the circumstances of the application. | Indicative establishment timeline: approximately 2–3 months, subject to regulatory approval, completeness of documentation and the circumstances of the application. |
| Ongoing complexity | High — per-cell licensing where applicable, audit and prudential reporting | Moderate — shared infrastructure but per-sub-fund licensing and reporting |
Legal personality
PCC
One entity with statutorily segregated cells
VCC
VCC and (optionally) each sub-fund
Statute
PCC
Protected Cell Companies Act 1999
VCC
Variable Capital Companies Act 2022
Cell segregation
PCC
Statutory ring-fencing — cells isolated even in insolvency
VCC
Ring-fencing observed in practice
Tax residency
PCC
GBL regime applies (typically)
VCC
Tax-resident in Mauritius
Treaty access
PCC
Yes, if structured as GBL
VCC
Yes — via GBL at umbrella level
Licensing
PCC
PCC core licensed by FSC; cells carrying regulated activities are subject to the applicable FSC approval/licensing requirements
VCC
VCC is authorised as a VCC Fund; individual sub-funds/SPVs are separately identified/authorised within the VCC regulatory framework
Minimum capital
PCC
No universal minimum capital for a PCC; capital depends on the regulated activity
VCC
Per GBL requirements
Audit
PCC
Financial reporting and audit requirements apply in accordance with the PCC's underlying regulated activity and applicable legislation.
VCC
Audited financial statements per sub-fund
Cell / sub-fund cap
PCC
No statutory cap on number
VCC
None
Cross-investment
PCC
Not a standard feature
VCC
Permitted between sub-funds (anti-circular rules)
Typical uses
PCC
Captive insurance, reinsurance, multi-strategy CIS, structured finance
VCC
Multi-strategy funds, Africa-focused managers, master/feeder, family-office platforms
Substance
PCC
PCC core licensed; cell approvals as applicable to regulated activities; statutory ring-fencing observed
VCC
Ring-fencing observed; FSC reporting at umbrella and sub-fund level
Reporting
PCC
FSC and prudential reporting; audit requirements per applicable regime
VCC
FSC reporting; FATCA/CRS at investor level per sub-fund
Setup time
PCC
Indicative establishment timeline: approximately 2–3 months, subject to regulatory approval, completeness of documentation and the circumstances of the application.
VCC
Indicative establishment timeline: approximately 2–3 months, subject to regulatory approval, completeness of documentation and the circumstances of the application.
Ongoing complexity
PCC
High — per-cell licensing where applicable, audit and prudential reporting
VCC
Moderate — shared infrastructure but per-sub-fund licensing and reporting
When to choose a PCC
You need cell segregation without fund regulation
A Protected Cell Company segregates assets and liabilities between cells. Each cell is ring-fenced from the claims of creditors of other cells.
PCCs are governed by the Companies Act 2001 and are commonly used for insurance, captive structures, and ring-fenced corporate purposes.
PCCs are suitable when you need asset segregation between business lines or investment portfolios without the regulatory burden of a fund structure.
When to choose a VCC
You need a regulated fund structure
The Variable Capital Company is a dedicated fund vehicle under the VCC Act 2022. It supports sub-funds with variable capital and segregated assets.
VCCs are regulated by the FSC as collective investment schemes. They offer a modern, flexible structure for fund managers launching open-end or closed-end funds.
VCCs are suitable for fund managers, investment platforms, and structures requiring FSC-regulated fund status with sub-fund flexibility.
At a glance
Regulatory framework
PCC: Companies Act 2001, minimal regulation. VCC: VCC Act 2022, FSC-regulated as a fund.
Sub-fund flexibility
PCC: Cells are segregated but not sub-funds. VCC: Full sub-fund structure with independent NAV and capital.
Cost to run
PCCs have lower regulatory and compliance costs. VCCs have higher costs due to FSC regulation, audit and reporting requirements.
Get started
Discuss your structure
Tell us about your objectives and we'll recommend the right structure for your cross-border needs.