A Guernsey protected cell company (PCC) is a type of corporate structure used by investment managers, insurance companies, and other businesses to segregate assets and liabilities into separate cells. Each cell, also known as a compartment, operates as an individual entity with its assets and liabilities protected from those of other cells within the company.
History of Guernsey PCCs Guernsey was the first jurisdiction to introduce PCCs back in 1997, following the incorporation of the concept into its Companies (Guernsey) Law. The introduction of PCCs was a significant innovation at the time, which led to Guernsey's emergence as a key player in the captive insurance market. Initially, PCCs were primarily used by captive insurers seeking to segregate the assets and liabilities of different policies within a single company. The introduction of PCCs was particularly significant for the insurance market, as it provided greater cost efficiency and flexibility. PCCs allowed insurers to offer multiple policies, each with distinct terms and conditions, from a single platform. Over the years, PCCs have evolved to become more widely used across a range of industries, including investment management and securities trading. Today, there are over 200 PCCs registered in Guernsey, with a combined asset value of over £60 billion. Benefits of Guernsey PCCs The primary benefit of a Guernsey PCC is that it provides an efficient and cost-effective way to segregate assets and liabilities into separate compartments. This provides greater flexibility and offers several operational and administrative advantages, including streamlined accountancy and reporting. Moreover, each cell's assets are protected from the claims of creditors of other cells, which enhances the overall security and risk management. Another significant benefit of Guernsey PCCs is that they enable businesses to establish a presence in a well-regulated, tax-efficient jurisdiction that offers a stable legal and commercial environment. This provides companies with an ideal toolkit for structuring complex transactions in a straightforward and tax-efficient manner. In conclusion, Guernsey PCCs have been a significant innovation in the corporate world, enabling companies to streamline operations, reduce costs, and enhance risk management. They have emerged as a popular and well-utilized option, providing businesses with an effective way to structure their assets and liabilities under one platform. Why use a PCC? A PCC facilitates bespoke investment structures - by having different classes in separate Cells, or by using Separate Cells for different strategies or projects, investors can be offered tailored investment opportunities, all through a single vehicle.
We can offer clients the ability to set up a Protected Cell Company in Guernsey. Contact us today for more information.
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