Private Trust Company in Mauritius

May 08, 2024 - 6 min read

 

The Private Trust Company (PTC) is a vehicle with a perfect model to preserve the assets of one’s family while exercising control as the Trustee. A Private Trust Company in Mauritius is an ideal choice for wealth management, and for High-Net-Worth-Individuals looking to structure their assets with the safety, added benefits and versatility of the Mauritian jurisdiction.

 

Why choose to set up a Private Trust Company in Mauritius

Mauritius is an International Financial Centre with a strong political and economic stability, accompanied by legal protection for a sound structuring of assets. Setting up of a Private Trust Company in Mauritius is quick and simple.

A Private Trust Company can be structured as a Global Business Company or an Authorised Company. Established as a Global Business Company, the Private Trust Company will likely charge Trustee fees to the Trust (professional fees) and thus be taxed at 15% and will have access to the Double Taxation Agreements network Mauritius has with other countries. Management services investment counsel with family Trusts may be carried out by a Private Trust Company as per a service agreement to licenced financial companies or service providers.

The significant advantages that Mauritius offers in regard to Private Trust Companies include:

  • No exchange controls;
  • Cost-effective and quality financial services (administration and establishment costs);
  • No requirement for a ‘qualified’ Trustee licence for the Private Trust Company to operate as corporate Trustee of the underlying Trusts;
  • Flexibility in decision-making;
  • Able to lodge exotic or high risk assets;
  • Clients can have control without compromising the validity of the structure;
  • The client who is not at ease with a third party acting as Trustee are protected; and
  • An efficient way to delegate wealth to the next generation (succession planning).

 


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Features of a Private Trust Company in Mauritius

Whilst there are no definite legislation in Mauritius for the Private Trust Company, the Financial Services Commission (FSC) has declared that where a Private Company acts as a Trustee for a specific number of Trusts for the benefit of a family, rather than offering its services to the public, it will not be considered as carrying out Trust business in Mauritius. Thus, given that it meets certain safeguards, it will not be mandatory to be licenced as per the Financial Services Act 2007 as a Corporate Trustee.

The features of the Mauritius Private Trust Company regime include:

  • appointment of a duly licenced Management Company to carry out its Trust administration services and as Company Secretary;
  • to abide by the standards of the Financial Services Commission;
  • needs to meet the following standards:
    • limit its activities to that of Private Trust business services;
    • offer its Private Trust business services uniquely to connected persons;
    • not trust business from, or deliver trust business services to, the public;
    • assign a duly licensed Management Company to deliver its Trust administration services concerning any express Trust to which it is a Trustee, certain Management companies can also include asset management services;
    • appoint the Management Company as Company Secretary; and
    • comply to the AML/CFT Framework.
  • must forthwith notify the Financial Services Commission of any change in the nature and scope of its private trust business; and
  • must provide to the FSC, on a yearly basis or upon request, a list of trusts for which it acts as private trustee.

 

Timeline for the setting up of a Mauritius Private Trust Company

It takes 10 to 15 business days to establish a Private Trust Company (PTC), while it takes up to two days to establish a Trust, subject to receiving all the compulsory documentations on the principles in the structure. In addition, audited accounts will have to be prepared in Mauritius. Therefore, the Private Trust Company should also have a registered auditor.

 

Sunibel can help you in setting up your PTC in Mauritius

Our in-depth expertise in the structure of Private Trust Companies allow us to accompany you in the establishment and administration of a Trust. Sunibel Corporate Services is legally entitled to act as a qualified Trustee under the Trusts Act 2001 and to provide administration services to the Private Trust Company as required. Our services include:

  • Establishment of your corporate structure;
  • Advise to meet your professional objectives;
  • Day-to-day business and corporate administration services; and
  • Accounting and tax advisory services.

 

FAQs

1. What is a Private Trust Company in Mauritius?

Set up as a Global Business Company or an Authorised Company, a Private Trust Company (PTC) acts as a Trustee for a family trust or a group of related Trusts. The PTC defers from a professional trustee in the sense that it offer more control and flexibility to the settlor (the person who creates the trust).

 

2. Why choose a Mauritius PTC?

The settlor can appoint trusted family members or advisors as Directors of the PTC, therefore maintaining a greater control over the Trust’s assets and decision-making. Furthermore, Mauritius’ strong legal framework for Trusts ensures confidentiality and protection of assets.

 

3. What are the requirements for setting up a PTC in Mauritius?

The Private Trust Company must be incorporated with the Financial Services Commission of Mauritius (FSC) as a Global Business Company (GBC) or an Authorised Company (AC).

Provided a PTC only manages assets for the designated Trusts and do not offer trustee services to the public, that PTC will not be considered as carrying out Trust business in Mauritius. Therefore, and subject to certain requirements, and in line with the Financial Services Act of 2007,  no specific licensing requirements will be applicable.

 

4. Are there any disadvantages to using a PTC?

The setting up and administration of a Private Trust Company can involve a greater amount of resources (including legal and administrative fees, knowledge of trust law and corporate governance) compared to using a professional trustee.

 

5. Who can benefit from a PTC in Mauritius?

A Private Trust Company is best suited for High-Net-Worth Individuals or families who have substantial assets to manage.

 

For more detailed information about the Private Trust Company, contact us via the below contact form:

 
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Disclaimer and important notices

This document has been prepared using sources believed to be reliable. However, their accuracy and completeness cannot be fully guaranteed. The statements and opinions it incorporates were formed after careful consideration and maybe subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to sell any services. The use of any information contained in this document shall be at the sole discretion and risk of the user. Sunibel Corporate Services Ltd does not provide legal or tax advice and this document should not be construed as such. Sunibel Corporate Services Ltd expressly disclaims any and all liability for inaccuracies contained in the document and shall not be held liable for any damage that may result from any use of the information presented herein. For more information, please see our terms and conditions.

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