Nikita Veremeev
09.11.2025 | 6 min read
Updated: 09.11.2025
Gibraltar PCC (Protected Cell Company) is a special form of legal entity that combines the advantages of a single company and the strict segregation of assets between its internal “cells”. This approach allows structuring business, investments, or insurance so that the risks and liabilities of one cell do not affect the others.
This model is suitable for organizations that require a flexible and reliable structure with clearly delineated areas of responsibility; we will look at these mechanisms in more detail in the next section.
PCC, what is it and how does it work?
Gibraltar Protected Cell Company (PCC) is a special form of legal entity established under the Protected Cell Companies Act 2001. Unlike a traditional company, a PCC consists of a core (core) and a number of separate cells (cells). Each cell is formed for a separate project, investment fund, or insurance portfolio, and all of them are legally isolated from each other and from the company’s core.
Key feature: segregation of assets and liabilities: if one of the cells faces losses or creditor claims, the other cells and the core remain protected. This ring-fencing mechanism is recognized as a global standard in risk management and investor protection.
The practice of
COREDO confirms that this structure allows businesses to flexibly adapt to different regulatory requirements and minimize the risks of cross-border operations.
Differences between PCC, traditional companies, and ICC
Unlike an Incorporated Cell Company (ICC), where each cell is a separate legal entity, in a PCC all cells exist within a single legal entity. This simplifies
corporate governance, reduces administrative costs, and speeds up licensing processes.
For international business, the advantages of PCC are obvious:
- The ability to quickly launch new products or projects by creating separate cells without the need to register new companies.
- Segregation of assets and liabilities – protection against cross-risks.
- Flexibility in structuring dividends and allocating profits across cells.
A solution developed by COREDO for one of the European investment funds enabled the client to reduce operating expenses by 30% and ensure compliance with Solvency II requirements without the need to create separate legal entities for each line of business.
Structure and operation of Gibraltar PCC
The structure and operation of a Gibraltar PCC are built on a unique model combining a centralized core and independent cells, each of which can conduct its own activities and hold assets.
Structure of a cell company: core and cells
At the heart of a PCC is a clear separation between the core and the cells. The core manages corporate policy, ensures compliance with governing documents and interacts with the regulator. Each cell is registered separately, has its own assets and liabilities, and may have individual beneficiaries and managers.
The COREDO team implemented projects where insurance, investment, and venture cells operated within a single PCC, each with its own strategy and reporting.
Segregation of assets and liabilities in a PCC
The main protection mechanism is the strict segregation of assets and liabilities between the cells and the core. The law expressly prohibits the transfer of assets between cells without special permission and limits the consolidation of cells, which prevents the risk of liabilities spilling over.
In one of COREDO’s cases for an insurance holding in Gibraltar, thanks to ring-fencing, it was possible to isolate losses in a single cell without affecting the financial stability of other business lines.
Legal support and management of a PCC
Effective management of a PCC requires clear governing documents and a transparent corporate governance structure. The board of directors is responsible for strategy, compliance with international AML/CFT standards, and oversight of the activities of each cell.
COREDO’s experience has shown that implementing best practices in corporate governance, regular audits, and alignment with international AML/CFT standards not only minimizes regulatory risks but also enhances investor and partner confidence.
PCC Registration in Gibraltar
PCC registration in Gibraltar offers a range of benefits, particularly for companies that want to segment assets and manage various risks.
Registration and conversion of a company into a PCC
The registration of a Protected Cell Company in Gibraltar is a process that requires strict compliance with procedures. It is necessary to prepare statutory documents, a business plan, conduct Due Diligence on the founders and appoint a board of directors. All documents are submitted to the Gibraltar Financial Services Commission (GFSC).
Converting an existing company into a PCC is possible but entails a number of complications: creditor consent is required, an audit of assets and liabilities, and amendments to the statutory documents.
PCC Licensing GFSCgiene
GFSC is the key regulator overseeing
Licensing of PCCs in Gibraltar. For insurance and investment cells, separate licensing is required, along with compliance with capital, reporting and AML/CFT requirements. The cost of licensing depends on the type of activity, the volume of assets and the number of cells. In addition to a one-time registration fee, annual fees are charged for each active cell.
COREDO’s solution for licensing an investment PCC for a European client included comprehensive preparation of documents, support for Due Diligence and integration with internal KYC procedures.
Minimum capital and guarantee fund requirements
A minimum guarantee fund is established for PCCs, which depends on the area of activity of the cells. For insurance structures, compliance with Solvency II standards is required, which ensures financial stability and protection of clients’ interests. For investment cells, capital requirements are determined by the regulator based on the risk profile.
The COREDO team develops bespoke models for calculating the guarantee fund, taking into account the specifics of the business and GFSC requirements.
Advantages and Risks of PCC in International Business
Advantages and risks of PCC in international business are becoming increasingly important against the backdrop of market globalization and the diversification of financial instruments.
Advantages of a PCC for Insurance and Investments
Using a PCC allows for a significant reduction in operating expenses by centralizing management, audit and compliance functions. Each cell can pay dividends to its beneficiaries, which provides flexibility in profit distribution.
Scaling a business by creating new cells is one of the key drivers of growth for international holdings.
Risk Management for Investors
A PCC provides a high level of investor protection through risk isolation.
Risk management includes not only financial control but also the implementation of cybersecurity systems, data protection and regular audits.
Restrictions on the transfer of assets between cells minimize the likelihood of abuse and ensure transaction transparency.
Taxes and Cross-border Operations
The tax consequences of using a PCC in Gibraltar depend on the business structure and the beneficiaries’ jurisdictions. Gibraltar offers competitive tax rates, no VAT and effective mechanisms for cross-border taxation.
Cross-border operations and currency controls require special attention to compliance and reporting.
Reporting, audit and compliance standards
Reporting, audit and compliance standards today serve as a key element of a company’s transparency and resilience in the modern regulated market.
Reporting and audit for PCC
Each cell maintains separate reporting, and consolidated reports are also prepared for the entire PCC. Audits are conducted both on individual cells and on the company as a whole. The GFSC imposes strict requirements on transparency and the completeness of information disclosure.
Due Diligence, KYC and AML for PCC
Due Diligence and KYC procedures are mandatory for all owners and managers of cells. Integration of PCC with international AML/CFT standards provides protection against financial crime and complies with the requirements of FATF and the EU.
Case studies and recommendations for implementing PCC
Case studies and recommendations for implementing PCC help you understand how to use this tool to solve practical business challenges.
Examples of using PCC in insurance and investments
In one of COREDO’s projects for an insurance consortium from the EU, implementing a PCC made it possible to segregate risks by lines of business, reduce licensing costs by 25% and ensure the rapid launch of new products in the EU and Asian markets.
Entering EU, Asian, and African markets through PCC
choosing a jurisdiction – a key step in strategic business structuring. Gibraltar stands out from Guernsey and Malta with regulatory flexibility, licensing speed and access to the single European market.
Liquidation, restructuring, PCC restrictions: what you need to know?
The issues of liquidation, restructuring and restrictions on PCC activities are becoming particularly relevant for companies today.
PCC liquidation and restructuring procedures
The liquidation or restructuring of a cell is carried out separately from the rest of the PCC structure, which helps minimize the impact on other areas of the business.
Key findings and recommendations
Gibraltar Protected Cell Company: is a tool for strategic growth, asset protection and effective risk management in international business. The advantages of a PCC are clear: segregation of assets and liabilities, scalability flexibility, operational cost savings, transparency and compliance with international standards.
– Prepare the constitutional documents and business plan thoroughly.
– Conduct comprehensive Due Diligence and KYC for all participants.
– Implement best practices in corporate governance and compliance.
– Use automated accounting and reporting systems.
– Engage experts with experience supporting PCCs in various jurisdictions.
The COREDO team is ready to offer tailored solutions for the registration, licensing and support of PCCs, ensuring transparency, protection of interests and compliance with international standards. By choosing a PCC in Gibraltar, you are investing not only in a legal structure but also in the long-term resilience and competitiveness of your business.
| Parameter |
Gibraltar PCC |
Traditional company |
| Legal structure |
Single entity with a core and cells |
Separate legal entity |
| Asset segregation |
Yes, between cells |
No |
| Licensing |
Required for the PCC and cells separately |
Standard licensing |
| Minimum capital |
Depends on the cells |
Overall company capital |
| Ability to pay dividends |
By individual cells |
For the entire company |
| Scaling |
Easy creation of new cells |
Requires creating a new company |
| regulatory requirements |
GFSC, specialized |
GFSC standard |
