A Private Trust Company (“PTC”) is a commonly used vehicle by high-net-worth individuals (HNI) who hold numerous family businesses and provides them with the advantage of retaining control over their investments.
Family members and their close associates are often appointed as members of the board of the PTC.
A PTC is not considered to be providing trusteeship services as a professional service in that the trusteeship service is for the benefit of a group of close select individuals (family members and close associates).
The popularity of Private Trust Companies has risen in recent years due to the fact that HNI families have been looking to consolidate their assets and interests in tailored private structures which provide the ability for the Settlor of the purpose trust (in general a purpose trust would be sole shareholder in the PTC) or his trusted advisors to be closely involved in the day-to-day management of the PTC.
Additionally, HNI families establish such structures with the objective of minimising their taxes and with the various tax incentives provided by Mauritius as an offshore financial centre.