Private Trust Company (PTC): A Customised Wealth Management Vehicle
A Private Trust Company (PTC) is a specially established legal entity created to act as the trustee for a particular family or group of trusts. Unlike traditional trust service providers, a PTC offers a personalised and flexible approach to wealth structuring, allowing families to retain control over how their assets are managed and passed down through generations. It serves as a governance-centric structure designed to meet the specific needs and long-term goals of the beneficiaries, ensuring both confidentiality and effective succession planning.
Why Set Up a PTC in Mauritius?
- Favourable Tax Environment
Mauritius presents a compelling tax regime for high-net-worth families:
- No tax on capital gains
- No estate or inheritance taxes
- Exemptions on certain foreign-sourced income, subject to conditions
These advantages allow families to maximise asset preservation while reducing their overall tax exposure.
- Strong Legal Protections for Privacy
Mauritius places a high priority on confidentiality and data protection. Legal safeguards ensure that sensitive information about trusts and their beneficiaries remains private, making the jurisdiction ideal for families who value discretion in managing their wealth.
Key Characteristics of a PTC
Tailored Governance
A PTC allows families to appoint trusted individuals, including relatives and advisors, to serve on its board. This gives them a high degree of influence over decision-making and ensures that the trustee operates in alignment with their family values and strategic intentions.
Enhanced Asset Protection & Succession Planning
With a PTC, families can shield their assets from potential legal, financial, and political risks. At the same time, it provides a structured and efficient platform for managing the transfer of wealth to future generations, supporting a long-term legacy.
Custom Trust Arrangements
A PTC enables the creation of trust structures that can be tailored to the family’s unique requirements. From investment policies to distribution terms, every aspect of the trust can be customised, offering unmatched flexibility and control.
Core Functions of a PTC
- Trustee Responsibilities
The PTC acts as the trustee of one or more trusts, assuming full responsibility for:
- Asset administration and investment oversight
- Compliance with the trust deed and local regulations
- Managing and executing distributions to beneficiaries
- Estate Planning Services
PTCs support comprehensive estate planning by assisting families in:
- Structuring and preserving multi-generational wealth
- Providing strategic financial advice
- Implementing tax-optimised investment solutions
- Family Office Operations
Many PTCs in Mauritius also operate as private family offices, centralising the management of the family’s global wealth. Services typically include:
- Coordinating with legal, tax, and financial professionals
- Managing real estate portfolios and other tangible assets
- Overseeing philanthropic and charitable activities
Mauritius as a Leading Jurisdiction for PTCs
Mauritius offers several distinct advantages over other jurisdictions when it comes to setting up a PTC:
- Cost-Effective Set-Up: Lower administrative and operational costs make Mauritius a financially viable choice for families looking for efficient wealth structuring.
- Robust Regulatory Framework: Regulated by the Financial Services Commission (FSC), PTCs in Mauritius operate under strict compliance and governance standards.
- Geographical Advantage: Located at the crossroads of Africa, Asia, and the Middle East, Mauritius is perfectly positioned for managing international wealth portfolios.
- Reputation and Transparency: The country is internationally recognised for its adherence to global regulatory best practices, ensuring a secure and transparent environment for wealth management.