Protected Cell Companies (PCCs)
Guernsey was the first jurisdiction to introduce the concept of the PCC in 1997 and continues to be a world leader in this area. Originally developed and used within the Captive Insurance sector, PCCs are now used across all disciplines of the finance industry including funds, securitisation and special purpose vehicles.

A Protected Cell Company is a single legal entity consisting of a core and a number of “cells”. The key difference between a PCC and a traditional company is the ability to segregate assets. The liabilities of one cell do not affect the profitability of another – assets are ring fenced from all other cells and therefore protected from potential creditors.

Individual cells are not legal entities in their own right and therefore cannot enter into contracts with one another.

The PCC is a highly flexible vehicle and can be used as part of an offshore structure for the mitigation of inheritance and capital gains tax and as a deferral vehicle.

Incorporate Cell Companies (ICCs)
Guernsey’s pioneering cell legislation was updated and enhanced in 2006 with the addition of a new entity type – the ICC

The ICC is based broadly on the same principles as a PCC and is made up of the ICC and one or more incorporated cells. It offers similar protection s the PCC in relation to the segregation of assets of individual cells. However the biggest difference is that the cells of an ICC are separate legal entities each with its own Memorandum and Articles and share capital.

The ICC legislation was developed to offer even more protection to creditors and also to afford higher levels of flexibility with respect to the migration and conversion of cells.


Download our Protected Cell Companies product note HERE