What is a Mauritius Private Trust Company?

A Private Trust Company (PTC) is a company formed to act as a trustee to a limited number of trusts, either for the benefit of a single family, or for the benefit of different branches of a family or for distinct (but related) family groups. The administration, investment management services or investment advice required in connection with the trusts is outsourced to licensed service providers. In Mauritius, a PTC takes the form of a Global Business Company, which would hold either a Category 1 Licence or a Category 2 Licence. The operation of a PTC is a private trusteeship arrangement whereby:

  • a high net worth individual (HNWI) sets up a company (known as a PTC) that will act as a trustee in respect of his own assets that would be settled in a trust or a number of trusts;
  • the client base of the PTC comprises of high net worth families or family who are able to evaluate and assume the financial risks and economic consequences of their investments.
Benefits of a Mauritius Private Trust Company

  • There is no public Register of Directors and Shareholders of the PTC. There is also no registration of the individual underlying trusts. The information provided to the Financial Services Commission (FSC) for the purpose of licensing is treated with utmost confidentiality.
  • A trust company owned by the family can afford to be more flexible in its decision making compared to a third party trustee who might need to seek indemnities from all beneficiaries before major decisions.
  • The involvement of the settlor or a family member or personal advisor on the board of the trust company will allow the actions of the trustee to be closely monitored by the family.
Establishing a Private Trust Company

A PTC must be established through a Licensed Management Company such as AAMIL Ltd. The constitution of the company will restrict its activities to that of acting as a Private Trust Company. There are several conditions applicable to PTC, namely:

  • 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;
  • forthwith notify the FSC of any change in the nature and scope of its private trust business;
  • provide the FSC, on a yearly basis or upon request, a list of trusts for which it acts as private trustee; and
  • the PTC shall comply with any law that may in future be enacted, that may impact on the conduct of its business and shall effect such changes as necessary to bring the company or its activities in compliance with such laws as may be required.

Administration of a Mauritius Private Trust Company

The Financial Services Commission (FSC) is very clear that the responsibility for ensuring compliance with the terms of the licence rests on the Licensed Management Company, duly appointed. In this respect, the FSC has laid out several conditions to which the Management Company (MC) has to adhere to. The conditions applicable to the MC are as follows:

  • at the time of application certify that the PTC qualifies as such and that the PTC is not providing its services by way of business;
  • enter into a written agreement with the PTC which specifies precisely what services it will provide to the PTC and its underlying trusts and allocates precise responsibilities between the Management Company and the PTC;
  • provide FSC on a yearly basis or upon request a list of PTCs with which they have entered into an arrangement to provide trusts administration business services;
  • forthwith notify the Commission when –

    • it has ceased to provide trust administration services to PTCs; and
    • the PTC has ceased to qualify to act as PTC.
Future of PTCs

Such structure should be encouraged. Its attraction is made increasingly clear to wealthy families; its use is growing constantly.


The specific advantage of Mauritius, as a jurisdiction, is that there is a lesser level of regulatory control or other constraints than in most other jurisdiction, such as for example far lower costs, no need to have a trust company representative as director of the PTC, no need to register nor to deposit yearly accounts with the FSC.

Dr Ludovic C. VERBIST, Ph.D., TEP
Managing Director
AAMIL Ltd
www.aamil.com

The author is Managing Director of AAMIL Ltd, corporate financial services provider. The Group is also providing trustee and asset management services. The offices are in Port-Louis (Mauritius), Geneva (Switzerland), Victoria (Seychelles), London (UK), Luxembourg (Grand-Duchy) and Mumbai (India).

Head Office

European Office

Suites 340-345 Barkly Wharf
Le Caudan Waterfront
P.O. Box 1070, Port Louis
Republic of Mauritius

8, Place du Bourg de Four
P.O. Box 3627
CH-1211 Geneva 3
Switzerland

Tel. (230) 210 1000
Fax. (230) 210 2000

Tel.: (41) (22) 818 61 00
Fax: (41) (22) 818 61 01

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.