Timeline for Setting Up a Trust in Mauritius

The first phase involves a detailed discussion with the client and their advisors to understand the objectives of the trust, the nature and location of the assets to be settled, the identities and circumstances of the beneficiaries, and any specific governance or succession requirements. CTM will prepare a structure memorandum outlining the proposed trust framework, including whether a protector should be appointed, whether the structure should include an underlying company, and the most appropriate trust type (discretionary, fixed, purpose, or a combination). Following agreement on the structure, CTM issues its personalised KYC checklist covering all parties. For individual settlors, beneficiaries, and protectors, this follows the standard personal KYC requirements. For any underlying corporate vehicles or PTCs forming part of the structure, the corporate KYC requirements apply. The KYC collection phase is the most significant variable in the overall timeline and should be initiated as soon as the structure is agreed, ideally before formal legal drafting begins. CTM's internal AML/CFT compliance review runs concurrently with document collection. Where enhanced due diligence is required — for example, for PEP clients or for clients with complex source of wealth — senior management sign-off is required before the trust can be established. CTM communicates any compliance requirements to the client and their advisors transparently and promptly.

Once KYC clearance is obtained (or is sufficiently advanced for legal drafting to proceed in parallel), CTM's legal team drafts the trust deed. The trust deed is tailored to the specific objectives of the structure and covers: the trust name, the governing law (Mauritius law under the Trusts Act 2001), the trust property, the trustee's powers and duties, the beneficial interests of the beneficiaries, the protector's powers (if applicable), the amendment and termination provisions, and the dispute resolution mechanism. The draft is circulated to the client and their legal advisors for review and comment. Once the trust deed is finalised, execution arrangements are coordinated. The trust deed must be signed by the settlor and the trustee (CTM). Where a protector is appointed, the protector's execution is also typically obtained at this stage. Depending on the jurisdiction of the settlor, execution may be effected in Mauritius or remotely with appropriate witness and notarisation requirements. The letter of wishes is drafted at this stage and signed by the settlor. Ancillary documentation prepared concurrently includes: the schedule of initial trust assets, trustee minutes of acceptance, any investment policy statement or management guidelines, and correspondence with the underlying asset custodians to initiate transfer.

Trusts administered by a licensed trustee in Mauritius in a global business context must be registered with the FSC Mauritius. CTM prepares and submits the FSC trust registration application as part of the trust formation service. The application includes the trust deed, KYC documentation for all parties, and a description of the trust's assets and activities. FSC registration for a standard trust is typically processed within 2 to 3 weeks. Depending on the structure, there may be additional regulatory notifications required. For example, if the trust holds shares in a Mauritius GBC, the company's register of shareholders must be updated and the FSC notified of the change in beneficial ownership. If the trust holds shares in a foreign company, the laws of that jurisdiction regarding disclosure of beneficial ownership must be considered. CTM coordinates with local counsel in relevant jurisdictions as required. For trusts involving Mauritius-sited immovable property, a notarial deed of transfer must be prepared by a Mauritius notary and registered at the Registrar General. This step can add 2 to 4 weeks to the overall timeline depending on the complexity of the property transfer and the availability of the notary.

The practical transfer of assets into the trust — the 'settlement' — is completed after the trust deed has been executed. For cash settlements, the settlor transfers funds directly to the trust's bank account. For share settlements, share transfer forms are executed and the company's register updated to reflect the trustee as shareholder. For real estate, the notarial deed of transfer is registered with the Registrar General and title is updated accordingly. For other asset classes, the relevant transfer or assignment documentation is prepared as applicable. Bank account opening for the trust follows a similar process to company bank account opening. The trustee (CTM) applies to the chosen bank on behalf of the trust, providing the trust deed, KYC for all parties, and a description of the trust's expected banking activities. Given that CTM is an established management company with existing banking relationships, the process for trust bank accounts is typically somewhat faster than for newly established companies — typically 3 to 6 weeks from submission. Once the bank account is operational, the initial settlement is received and the trust becomes fully operative. CTM issues a confirmation of trust establishment to the client and their advisors and sets up the ongoing trust administration programme, including accounting, annual reporting, and periodic trustee reviews.