- December 15, 2023
- Posted by: Aurélie
- Category: Investment
A Private Trust Company (PTC) is a beneficial company structure for the efficient management of wealth and assets. If you’re a foreign investor considering a business venture overseas, Mauritius is the ideal jurisdiction for various reasons. Blue Azurite tells you more about it.
Needless to say, its location in the Indian Ocean, at the crossroads of major commercial routes, makes Mauritius an attractive destination for foreign investors from all over the world. The island boasts not only a robust economy and political stability but also a strong regulatory framework within a transparent and investment-friendly environment.
What is a Private Trust Company?
A Private Trust Company (PTC) is a specialized corporate entity established to manage and administer trusts. Unlike traditional trust structures, where a professional trustee or a financial institution is appointed to administer the trust, a PTC is typically set up by a family or an individual to act as the trustee for their trusts. Below is an overview of the key features of a PTC for you to consider if you’re looking to invest in Mauritius:
As a family or individual creating the PTC, you are fully empowered to own and control the company, providing a high degree of autonomy in decision-making regarding the management and distribution of family assets.
PTCs are often established for the investor’s specific needs and preferences, allowing for a high degree of customization in the governance structure and operational aspects of the trust.
Foreign investors often use PTCs as part of a broader family governance strategy, making it easier to involve family members in the decision-making process and fostering communication and collaboration among them.
PTCs offer greater flexibility in investment decisions, allowing families to have a more hands-on approach to managing their investment portfolio, especially when they have specific investment goals or strategies.
PTCs provide a level of confidentiality and privacy, as their internal affairs are not subject to public disclosure to the same extent as some other types of corporate entities.
PTCs are particularly efficient in terms of estate planning, ideal for the seamless transfer of wealth from one generation to the next, providing a structure that helps preserve family assets and values.
Families can have greater control over managing their assets, thus reducing reliance on external trustees. This can be particularly important for families with complex or unique asset structures.
Establishing a PTC might be more cost-efficient than engaging the services of external professional trustees. Overall, foreign investors choosing this type of company can unlock new opportunities and safeguard their financial legacies for generations to come.
Benefits of creating a PTC in Mauritius as a foreign investor
Mauritius is world-renowned for its favorable tax regime, making it an ideal hub for foreign investors. By establishing a PTC in Mauritius, foreign investors are entitled to a range of tax benefits, including zero capital gains tax, the absence of inheritance tax, as well as low corporate tax rates. Indeed, PTCs benefit from a favorable tax climate, resulting in increased returns on investments.
In terms of confidentiality of client information and privacy in financial matters, it’s worth noting that Mauritius strictly adheres to international standards. This confidentiality also extends to beneficiaries of the trust. The current framework also guarantees that such structures can maintain the anonymity of the ultimate beneficial owners, which can be extremely valuable for high-net-worth individuals and families who prioritize privacy in their financial affairs.
As mentioned above, Mauritius offers a robust legal framework for asset protection, making it an attractive jurisdiction for establishing trusts. For instance, assets held within a trust structure may be safeguarded from potential creditors. PTCs also provide for efficient wealth transfer to beneficiaries, thus reducing the complexities often associated with inheritance. Moreover, the country provides access to various investment opportunities, including real estate, private equity, and international financial markets. Therefore, foreign investors looking to establish a PTC can leverage these options to create a diversified portfolio, mitigating risks and optimizing returns.
The bottom line
If you’re still in doubt, remember that Mauritius has a pool of skilled professionals, including legal experts, financial advisors, and trustees, who can facilitate the smooth operation of your PTC and ensure compliance with regulatory requirements that might be subject to changes. Feel free to get in touch with Blue Azurite now for more information. Our team of experts is here to guide you from getting started with your project to facilitating the day-to-day management of your PTC.