Incorporated Cell Companies

The Isle of Man Government has introduced legislation allowing Incorporated Cell Companies (ICCs) to provide a further offering to the already wide range of corporate structures available in the Isle of Man.  The Incorporated Cells Act 2010 and Insurance (ICC) Regulations 2011 came into effect on 23 June 2011. 

The essential characteristic of the ICC, which differentiates it from the Protected Cell Company (PCC), its closest peer, is that each cell within an ICC is a separate entity that has its own individual legal personality.  Thus each cell can sue, or be sued in its own right, with no effect on the other cells within the ICC.  With a PCC, the company itself is the legal personality.  Both types of company are able to hold ring-fenced assets within individual cells, making such assets unavailable to creditors of the other cells.    

At present, ICCs are restricted to insurance business; however the legislation does contain provisions to extend their use to be expanded in future.  It is thought that the captive insurance sector will make particular use of the ICC legislation.

The legislation in respect of PCCs was extended in October 2010 to allow PCCs to conduct any sort of business.  Previously the same restriction had applied to PCCs with respect to insurance business only.

October 2011