May 24, 2019

A Private Trust Company – A Flexible vehicle for Wealth Management

Similar to any other company, a PTC is run by its board of directors and choosing the right persons to act as directors is vital for correct trustee decisions of the company as well as the proper administration of the underlying family trust or group of related trusts.

A PTC does not require to be licensed as a Qualified Trustee in Mauritius as it does not carry out business as a fiduciary. Thus, settlors may have their own "trust company" without the necessary requirements for the setting up a licensed fiduciary business.

Why a PTC?

The PTC is a product introduced because Settlors/clients want to be more involved in the administration of the trusts being set up for their family. The creation of the structure is to breach the gap of the relationship of the client and the trustee as well as further benefit from a win-win situation. PTC structures have gained its popularity in the global business sector as they are more flexible and can accommodate the needs of clients in various ways which are listed below:

  • Control - The client is in a better position to retain greater control as he /she can compose a board of directors comprising of himself along with his family members and trusted advisors to administer the structure, to enhance the assets for the benefit of the beneficiaries and for asset protection.
  • Trustee Liability – Professional Trustees’ liability are high in relation to assets and liabilities of the trust and the risk involved in running a trust structure. A professional trustee normally seeks legal advice/counsel and requests for indemnities from the beneficiaries in such situations to mitigate the risks in a trust structure before taking any strategic decision. Differently, in a PTC structure, it is board who collectively decide on the liability and risk matters.
  • Confidentiality- The ownership of the structure remains confidential as the PTC acts as trustee which comprises of family members.
  • Flexibility - PTC is likely to be more flexible and quicker in dealing with trust assets and decision making.

PTC are new structures which are becoming more and more popular by the days due to the number of benefits as stated above. However, careful consideration and professional advice should be sought prior to structuring one to avoid any potential tax and other issues.

HOW MITCO CAN HELP?

  • Advising on the structuring of the PTC
  • Drawing up constitutive documents in liaison with overseas lawyers
  • Incorporating and licensing of the PTC
  • Obtaining all necessary clearances from the FSC
  • Provision of local directors of appropriate caliber
  • Coordinating and holding Board meetings
  • Provision of registered office, share registration and secretarial services
  • Provision of accounting and administration services

 

Contact details

For more information, please contact your relationship manager of the Business Development Team by email bd@mitcoworld.com or phone them on + 230 404 8000.

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