4 Parameters to Consider before Structuring a GBC/AC with a Trust

Imagine having complete peace of mind, knowing your wealth is not only protected today but secured for generations to come. This isn’t just a comforting thought – it’s entirely achievable through strategic structuring of your global assets. For discerning investors and business owners with international interests, the powerful combination of a Mauritius-based Global Business Company (GBC) or Authorised Company (AC) with a carefully designed trust can create an unparalleled fortress around your wealth. But this fortress must be built on solid foundations.

At GWMS Ltd, we’ve guided countless clients through this critical journey – transforming complex financial challenges into robust solutions that stand the test of time. The secret lies not in following generic templates, but in mastering four essential parameters that determine whether your structure will truly deliver that elusive peace of mind you seek.

Understanding GBC/AC and Trust combinations

Before diving into the key considerations, it’s important to understand what these structures offer individually and in combination. A GBC or AC in Mauritius provides an excellent vehicle for international business operations and investments, while a trust creates a flexible mechanism for asset protection, tax mitigation, protection from creditors, exemption from forced heirship rules, and succession planning.

When combined strategically, these structures can create powerful synergies that maximise both business efficiency and personal wealth protection.

The 4 key parameters for successful structuring of a GBC/AC with a Trust

When designing your ideal wealth protection framework, four critical elements will determine whether your structure truly delivers long-term security or merely creates a façade of protection. Let’s examine each in detail to ensure your GBC/AC and trust combination stands on solid ground.

1. Clearly define your specific asset protection needs and goals

The foundation of any successful structure begins with clarity about what you’re trying to achieve. Different assets require different protection strategies, and various goals may necessitate specific approaches.

Key considerations include:

• Nature of assets to be protected: Physical assets, investments, intellectual property, or business interests each present unique challenges and opportunities.
• Jurisdictional exposure: Understanding where your assets and business activities exist and the associated risks.
• Time horizon: Short-term business objectives versus long-term family wealth preservation require different approaches.
• Control versus protection balance: How much direct control you wish to maintain versus the level of protection needed.

A structure that perfectly serves one client may be entirely unsuitable for another. At GWMS Ltd, we begin each client relationship by thoroughly assessing your unique situation and objectives before recommending any specific arrangement.

2. Evaluate the compatibility of GBC/AC and Trust structures

Not all corporate and trust structures work well together. The compatibility between your GBC/AC and the trust arrangement is crucial for long-term success.

Important compatibility factors include:

• Structural alignment: Ensuring the corporate objectives of the GBC/AC align with the trust’s purpose.
• Operational efficiency: How the day-to-day management of the GBC/AC functions within the trust arrangement.
• Flexibility for future changes: Building in adaptability to accommodate evolving business needs or family circumstances.
• Governance mechanisms: Establishing clear rules for decision-making across both structures.

A properly aligned structure provides seamless interaction between the corporate vehicle and the trust, ensuring each complements rather than complicates the other.

3. Thoroughly assess legal and tax implications

Perhaps the most complex aspect of combining GBC/AC structures with trusts involves navigating the legal and tax landscape across multiple jurisdictions.

Critical considerations include:

• Substance requirements: Ensuring sufficient economic substance in Mauritius to meet international standards.
• Beneficial ownership reporting: Understanding disclosure requirements across all relevant jurisdictions.
• Tax treaty benefits: Maximising available benefits while ensuring compliance with anti-avoidance provisions.
• Future-proofing: Anticipating regulatory changes that might impact your structure.

The international tax landscape continues to evolve rapidly, with initiatives like BEPS (Base Erosion and Profit Shifting) and increased information exchange between tax authorities. A structure that fails to account for these developments may provide short-term benefits but long-term complications.

4. Select a Management Company with appropriate expertise and reputation

The final – and arguably most important – parameter is the quality of the professionals guiding your structuring decisions and managing your arrangements.

When selecting advisors, consider:

• Specialised knowledge: Experience specifically with combined GBC/AC and trust structures, not just general corporate or trust work.
• Multi-disciplinary capabilities: Access to expertise across legal, tax, corporate and fiduciary disciplines.
• Regulatory standing: Clean regulatory history and good standing with relevant authorities.
• Leadership of the Management Company: Extensive track record with clients having similar needs and objectives.

At GWMS Ltd, our team brings decades of combined experience in international corporate structuring and structure planning, with particular expertise in Mauritius-based solutions.

Achieving the ideal balance

When these four parameters are carefully considered and properly addressed, the resulting structure can indeed provide that coveted peace of mind. Your assets receive robust protection, your business operations maintain necessary efficiency, and your family’s financial future becomes secure through effective succession planning.

The key lies in recognising that this is not a do-it-yourself project nor a one-size-fits-all solution. Each structure must be customised to the specific circumstances and objectives of the client, then implemented with precision and maintained with diligence.

Contact GWMS Ltd today to successfully structure your GBC/AC with a Trust

If you’re considering structuring a GBC or AC with a trust arrangement, contact our team at GWMS Ltd for an initial consultation. We’ll help you navigate these critical parameters and develop a structure that truly provides the comprehensive protection and planning you seek. With the right structure and the right advisors, you can achieve that elusive complete peace of mind about both your business assets and your family’s financial future.