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Private Trust Company (PTC)

   

What is a Private Trust Company (PTC)?


A PTC is an entity whose sole purpose is to act as trustee in relation to a specific trust or trusts and for individuals wishing to manage their own Trust Company, usually for family members. The PTC is run by its board of directors and cannot provide Trustee services for commercial purposes.

Benefits of PTC?


  • Control: The most common use of a PTC is to act as trustee of a purpose trust or a discretionary trust which holds shares in a family enterprise. Settlors of such trusts who wish to keep control of the company themselves, and simply desire that the trustees retain such shares.
  • Continuity of Trustee Services: Family members on the board remain as Trustees with only administration agreements varying with service providers.
  • Confidentiality: ownership of the structure can remain confidential when structured with the use of, for example, a purpose trust.
  • Trustee flexibility: PTCs can provide for riskier investments to be included in the structure which may be cumbersome with professional Trustees.

British Virgin Islands PTC


In accordance with the Regulations, in BVI a private trust company is: "a company:
  • that is a qualifying BVI company;
  • that is a limited company within the meaning of the BVI Business Companies Act, 2004; and
  • the memorandum of which states that it is a private trust company

The legislation has been altered in advance to allow the phrase "PTC" to be included in the name of a company engaged in such business.

PTCs are to be exempt where they are unremunerated, and fall within the exemption if they are able to satisfy the definition as follows:

  • Trust business carried on by a private trust company is unremunerated trust business if no remuneration is payable to, or received by, the private trust company, or any person associated with the private trust company, in consideration for, or with respect to, the services that constitute the trust business.
"Remuneration" includes
  • money or any other form of property; and
  • it is immaterial whether remuneration is payable or received
  • out of the assets, or underlying assets, of a relevant trust
  • from the settlor or beneficiary of a relevant trust; or
  • from any other person pursuant to an arrangement with the settlor or beneficiary of a relevant trust.

Mauritius PTC


There is no specific legislation in Mauritius relating to the PTC but the FSC has issued rules and guidelines where a private company can act as Trustee for a limited number of Trust, provided those structure is merely for the benefit of a family member of a related family member and the PTC cannot act as a Trustee for a Trust where it derives any commercial benefits.

Furthermore, the PTC must appoint a licensed management company as administrator, who shall administer the Trust for and on behalf of the client.

Features of the Mauritius PTC Regime:


  • A PTC can be set up either as a Mauritius GBC I or a Mauritius GBC II
  • The PTC must be set up by a licensed Management Company
  • The PTC must adhere to conditions set out by the Financial Services Commission
  • The PTC does NOT need to be licensed as a Corporate / Qualified Trustee
  • The PTC is required to:
    • restrict its activities to that of private trust business services;
    • at all times maintain a minimum paid up capital of US$5,000;
    • provide its private trust business services solely to connected persons;
    • not solicit trust business from, or provide trust business services to, the public;
    • appoint a duly licensed Management Company to carry out its trust administration services in relation to any express trust to which it is a trustee;
    • appoint the Management Company as Company Secretary;
    • adhere to the AML/CFT Framework.

Typical PTC Structure



How to Proceed

If you would like to discuss your requirements with one of our consultants,
please contact us.


 
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