CIFS announce proposal for new form of Incorporated Cell Company Legislation
- The ability to contract with other cells or PICs within the same SPC facilitates reinsurance, quota sharing and pooling.
- A separate board of directors permits governance flexibility.
- For counterparties unfamiliar with cells, a PIC may be more readily accepted than a cell.
- A PIC can easily transition to a standalone captive.
- Because a PIC would be indistinguishable from any other company limited by shares, it likely would be recognised as a separate legal entity for US tax purposes, allowing it to make its own tax elections under its own federal tax identification number.
Published July 24, 2012
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