Cell company legislation has been in effect in Malta for a number of years and is proving to be an opportunity for expansion of Malta’s financial services industry, particularly the insurance and investment fund sectors, says Dr Angela Thorns of Dingli and Dingli.
As from February 1, 2011, it became possible to register an Incorporated Cell Company under the Companies Act’s Incorporated Cell Companies Carrying on Business of Insurance Regulations 2010 (ICC Regulations). These regulations are intended to complement existing laws and rules, including those covering Protected Cell Companies (PCC ), which have been in operation since 2004.
The use of cells in this way represents a solution for companies that do not wish to operate as a stand-alone company. Under Maltese law, it is possible for an incorporated cell to eventually convert into a full company (not a PCC , an ICC or an incorporated cell). This can allow companies to achieve business continuity and reduce costs using a process that is faster and more cost-effective than dissolving the incorporated cell, forming a new company and transferring the business.
An incorporated cell is particularly useful when business is carried out or assets held in jurisdictions that have not adopted or do not recognise the concept of a protected cell. An incorporated cell enjoys is generally recognised in such jurisdictions.
Malta, Protected Cell Company, Incorporated Cell Companies