Trusts and Trust Companies

The Trust is traditionally a Common Law concept although Civil Law jurisdictions have been seen to adopt Trust related legislation in recent years. Most countries which do not contain the concept of Trusts within their own legal system typically recognize the concept under The Hague Convention on the Law Applicable to Trusts and on their Recognition.

A Trust arises when property is transferred by one party to be held by another party for the benefit of a third party. A Trust is created by the Settlor, who transfers an asset to the Trustee, who holds that trust property for the benefit of the Beneficiaries. The Settlor can also be known as the Trustor, Grantor, Creator or Founder.


Many Offshore Tax Havens allow for Trusts to be created under their laws without the need for any registration of the Trust Deed (the document creating the Trust). To create an Offshore Trust can consequently be as simple as to mention in the Trust Deed that the Trust in question should be governed by the laws of a specific Tax Haven jurisdiction. Our service package includes Trust Deed templates for the creation of any number of Offshore Trusts. Each time your Trust Company (the Trustee) accepts a new customer, a new Offshore Trust is created through the execution of a Trust Deed, just as a Bank would execute an account agreement when a new account is created for a customer.

To create a Trust and to choose the right offshore jurisdiction is one thing but if you wish to create and manage Trusts professionally, as a Trustee, a special license is required in most jurisdictions. To obtain and maintain the required license for Trust Management activities in an offshore tax haven jurisdiction is an onerous process, generally subjecting the licensee to similar requirements as those of a fully licensed Bank, meaning extensive regulation in regards to capital, qualification and local physical presence.


There are additional requirements for Trust formation within onshore jurisdiction. A person/entity managing assets professionally as a Trustee simply needs to comply with Anti Money Laundering (AML) Legislation and needs to be specifically registered as a Regulated Provider of Trust Management Services. The Trust Companies we offer come fully compliant with this registration requirement.

European trusts are a well respected jurisdiction and legal entities enjoy wide recognition and respectability, not only throughout Europe but worldwide. The legal status of a TRUST entity is easy to verify with local authorities and registration documents. The AML Registration is a crucial element when opening bank accounts for the Trust Company, since any reputable bank, anywhere in the world, would be hesitant to open accounts for an entity handling third party funds unless compliance with AML regulations can be properly documented.


Our concept of a Onshore Trustee Company managing offshore trust accounts combines the best of two worlds, Onshore respectability and prestige with Offshore tax and privacy advantages.


There are no limitations on the types of assets that can be placed under management by a Trust Company. Assets can include but are not limited to:

  • Cash Deposits (No Currency Restrictions)
  • Banking Deposits
  • Stocks
  • Bonds
  • Debentures
  • Mutual Funds
  • Hedge Funds
  • Any type of Securities
  • Commodities
  • Precious Metals
  • Real Estate
  • Investments in General
  • Exchange trading
  • Aircrafts, marine vessels, jachts

Onshore Trust can be compared with offshore bank but without banking capital. Onshore Trusts can receive own SWIFT BIC code. After that clients of your Trust receive IBAN numbers from your BIC code. Also you can issue VISA and Mastercard banking cards to your clients on behalf of trust.


As a partnership the Trust Company is a legal entity but not subject to taxation itself. The partners should pay taxes on their share of the reported profits (if any). Jurisdictions with territorial taxation systems might obviously not impose any taxation on the foreign source income of the partners, in which case the Trust Company could be a tax free structure, registered in what is generally perceived as a high tax country.