The Ultimate Guide to Private Trust Companies (PTC) in Hong Kong
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Looking to set up a Private Trust Company in Hong Kong? Learn about the benefits, legal requirements, tax advantages, and how to maintain control over family assets.
The Ultimate Guide to Private Trust Companies (PTC) in Hong Kong
In the world of high-net-worth wealth management, the Private Trust Company (PTC) has emerged as the gold standard for families seeking to balance robust asset protection with hands-on control.
While Hong Kong has long been a global financial hub, recent modernizations to the Trustee Ordinance have made it the premier jurisdiction for establishing a PTC. This guide explores why a Hong Kong PTC is the preferred vehicle for global family offices and how you can leverage one for your legacy.
1. What is a Private Trust Company (PTC)?
A Private Trust Company is a corporate entity incorporated specifically to act as the sole trustee for a single trust or a group of related family trusts.
Unlike professional trustees (like banks), a PTC does not offer services to the public. Instead, it allows the family (the Settlor) to sit on the Board of Directors, ensuring they remain "in the driver's seat" of their investment decisions while maintaining the legal integrity of a trust structure.
2. Why Choose Hong Kong for Your PTC?
Hong Kong offers a unique combination of common law stability and "firewall" protections that many offshore jurisdictions lack.
No Rule Against Perpetuity: Following the 2013 reforms, Hong Kong trusts can now exist indefinitely. This is vital for multi-generational dynasty planning.
Reserved Power Provisions: Hong Kong law explicitly allows Settlors to reserve powers of investment and management without invalidating the trust.
Firewall Legislation: Robust protection against "forced heirship" claims from foreign jurisdictions.
Tax Efficiency: Hong Kong does not impose capital gains tax, gift tax, or estate duty.
Regulatory Ease: PTCs in Hong Kong are generally exempt from the licensing requirements of the Trustee Ordinance (Cap. 29), provided they do not provide trust services "by way of business" to the public.
3. PTC vs. Professional Trustee: Which is Right for You?
Feature | Private Trust Company (PTC) | Professional/Institutional Trustee |
|---|---|---|
Control | High: Family members can be directors. | Low: The bank/firm makes final decisions. |
Privacy | Superior: Internal family matters stay private. | Moderate: Subject to institutional KYC/AML. |
Speed | Fast: Decisions made by the family board. | Slower: Subject to internal committees. |
Cost | Higher setup, lower annual fees. | Lower setup, higher annual % of AUM. |
4. Key Requirements for Setting Up a Hong Kong PTC
To qualify as a PTC in Hong Kong and maintain its exempt status, the following criteria generally apply:
Incorporation: Must be a Hong Kong private limited company.
Restricted Objects: The Articles of Association must limit the company’s activity to acting as a trustee for specific family trusts.
No Public Solicitation: The PTC cannot advertise or offer trustee services to the general public.
Ownership: Often held by a "Purpose Trust" or a "Charitable Trust" to ensure the PTC itself doesn't fall into the Settlor’s personal estate.
5. Step-by-Step Implementation
Drafting the Trust Deed: Defining the beneficiaries and the scope of the trust.
Incorporating the PTC: Setting up the HK Co Ltd.
Appointing the Board: Selecting family members or trusted advisors as directors.
Asset Transfer: Moving legal title of assets (shares, real estate, art) to the PTC.
Ongoing Administration: Ensuring the PTC holds annual meetings and maintains statutory records.
6. Common Pitfalls to Avoid
The "Sham" Trust Risk: If the Settlor treats trust assets as personal pocket money, the trust could be declared a "sham." We recommend appointing at least one professional independent director to ensure fiduciary duties are met.
Economic Substance: While HK has a territorial tax system, ensuring the PTC has a physical presence (registered office/secretary) is essential for global compliance (CRS/FATCA).
Summary: Future-Proofing Your Legacy
A Hong Kong Private Trust Company offers the perfect intersection of legal certainty and personal control. In an era of increasing global transparency, having a bespoke, well-governed structure in a top-tier jurisdiction is no longer a luxury—it is a necessity.
Ready to structure your family office? Contact our Hong Kong Trust Specialists today for a confidential consultation.
"First Board Resolution" Template for your new PTC
Since you are looking to formalize the setup, a First Board Resolution is the most critical document for a newly formed PTC. It officially activates the company's role as a trustee and ensures the legal "separateness" required to protect family assets.
Template: First Board Resolution of [PTC Name Limited]
Date: [Insert Date]
Location: [Registered Office Address, Hong Kong]
Present: [Insert Names of Directors]
1. Appointment of Chairperson and Quorum
It was noted that a quorum was present, and [Name] was appointed Chairperson of the meeting.
2. Incorporation and Registered Office
The Chairperson reported that the Company was incorporated in Hong Kong on [Date] with Company Number [Number]. The Registered Office was confirmed as [Address].
3. Appointment of Trustee Capacity
RESOLVED THAT: The Company, in accordance with its Articles of Association, hereby accepts its appointment as the Sole Trustee of The [Family Name] Family Trust (the "Trust") as established by the Trust Deed dated [Date].
4. Adoption of Common Seal (Optional)
RESOLVED THAT: The seal presented to the meeting be adopted as the Common Seal of the Company.
5. Bank Account Opening
RESOLVED THAT: A corporate bank account be opened with [Bank Name] in Hong Kong for the purposes of managing Trust assets. [Name(s)] are hereby authorized as signatories.
6. Indemnity
RESOLVED THAT: The Company shall exercise its right to be indemnified out of the Trust assets for all liabilities properly incurred while acting as Trustee.
Signature: __________________________ (Chairperson)
The "Restricted Objects" Clause Template
In Hong Kong, the Trustee Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) require trust service providers to be licensed.
However, a Private Trust Company (PTC) is generally exempt from the Trust or Company Service Provider (TCSP) license requirement if it does not carry on a trust business "for reward." To satisfy the Registrar and the Inland Revenue Department (IRD) that the company is a genuine PTC, your Articles of Association must contain a specific "Restricted Objects" clause.
You can insert the following language into the Objects/Powers section of your Articles of Association.
1. Restricted Objects The objects for which the Company is established are strictly limited to the following:
(a) To act as trustee, executor, administrator, nominee, or custodian of The [Insert Family/Trust Name] Trust(s) and any other trusts created by [Name of Settlor] or members of the [Name] Family;
(b) To perform all such acts and things as are incidental or conducive to the attainment of the above object.
2. Prohibition of Public Business The Company is strictly prohibited from:
(a) Offering or providing trust services to the general public or to any person or entity other than those specified in Clause 1(a);
(b) Holding itself out as carrying on a trust business by way of trade, profession, or for profit/reward;
(c) Advertising its services as a trustee to the public.
3. Limitation on Remuneration The Company shall not receive any remuneration, commission, or profit for its services as a trustee, other than the reimbursement of actual expenses and administrative costs incurred in the bona fide performance of its duties as trustee.
Why this specific phrasing matters
"Not for Reward": By stating the company only recovers "administrative costs," you differentiate the PTC from a commercial trust company.
Specific Family Designation: Narrowing the scope to a specific family or settlor proves to the Hong Kong authorities that the entity is a private vehicle.
TCSP Exemption: This clause is your primary evidence if the Companies Registry audits your TCSP status. Without it, you may be flagged for operating an unlicensed trust business.
Implementation Checklist
Check the Definition of "Family": If the PTC will serve multiple branches of a family, ensure the clause covers "lineal descendants and their spouses."
Consistency with Trust Deed: Ensure the name of the Trust in the Articles matches the name in the Trust Deed exactly.
Board Resolutions: The first board meeting should formally adopt these restrictions to ensure directors understand their fiduciary limitations.
Frequently Asked Questions: Hong Kong PTCs
Can a foreigner set up a PTC in HK?
Yes, foreigners can 100% own and operate a Private Trust Company (PTC) in Hong Kong. There are no restrictions on nationality or residency for shareholders or directors. You can establish and manage a Hong Kong PTC entirely from abroad, provided you appoint a local Hong Kong Company Secretary.
No Residency Required: Directors and shareholders do not need to live in Hong Kong.
Full Ownership: Foreign individuals or foreign corporate entities can hold 100% of the shares.
Mandatory Local Presence: You must have a registered office address in Hong Kong and a local Company Secretary (either an individual resident or a licensed TCSP).
Banking: While setup is remote, most Hong Kong banks require at least one director to visit in person to open the corporate account for the PTC.
What are the costs of a HK PTC?
The initial setup cost for a Hong Kong PTC typically ranges from HKD 9,000 to HKD 15,000 (USD 1,150 – 1,900), including government fees. Annual maintenance, including secretarial services, registered office, and mandatory audits, usually costs between HKD 10,000 and HKD 20,000 per year.
Cost Breakdown (2026)
Expense Category | Item | Cost (HKD) |
|---|---|---|
One-Time Setup | Government Incorporation Fee | $1,545 |
Business Registration (1-Year) | $2,200 | |
Professional Setup/Legal Fees | $5,000 – $10,000 | |
Annual Maintenance | Annual Return (NAR1) Filing | $105 |
Company Secretary & Address | $3,000 – $6,000 | |
Statutory Audit & Tax Filing | $6,000 – $12,000 | |
TOTAL (Year 1) | ~$15,000+ |
Note: Costs may increase depending on the complexity of the Trust Deed drafting and the volume of transactions within the trust.
Strategic Wealth Preservation: Why Bestar is Hong Kong’s Premier Choice for PTC & Family Office Structuring
The Ultimate Guide to Private Trust Companies (PTC) in Hong Kong
In 2026, wealth preservation is no longer just about tax efficiency; it is about governance, control, and agility. For ultra-high-net-worth individuals (UHNWIs), the Hong Kong Private Trust Company (PTC) has become the definitive vehicle for managing a Single Family Office (SFO).
At Bestar, we don't just register companies; we architect legacies. Here is how our specialists structure family offices to outpace the market and protect your interests for generations.
1. The Bestar Edge: Why Our PTC Structures Are Superior
While many firms offer basic incorporation, Bestar specializes in the bespoke governance required for a functional family office.
Integrated TCSP Licensing: Bestar is a licensed Trust or Company Service Provider (TCSP). This ensures that your PTC is managed under the highest regulatory standards of the Hong Kong Companies Registry.
Reserved Power Expertise: We help settlors retain investment control without compromising the trust's legal integrity, utilizing Hong Kong's modernized Trustee Ordinance.
One-Stop Ecosystem: From initial tax advisory to annual statutory audits and payroll for family office staff, Bestar manages the entire lifecycle in-house.
2. How Bestar Structures Your Family Office
Setting up a family office involves more than a legal entity; it requires a roadmap. Bestar follows a 4-pillar implementation strategy:
A. The "Orphan" Ownership Model
To ensure the PTC itself does not become a probate issue, we often structure the ownership of the PTC through a Company Limited by Guarantee or a Charitable Trust. This "orphans" the structure, providing a layer of protection that direct ownership cannot match.
B. Tax Incentive Optimization
Hong Kong offers lucrative tax concessions for family-owned investment holding vehicles (FIHVs). Bestar’s tax specialists ensure your SFO meets the "central management and control" tests to qualify for 0% tax on specified investment profits.
C. Governance & Succession
We draft tailored Articles of Association and Family Constitutions that define exactly how the next generation enters the business, preventing the "third-generation curse."
3. Bestar’s Transparent 2026 Fee Structure
We believe elite service should not have hidden costs. Unlike competitors who hide disbursements, Bestar provides clear, quote-based pricing.
Service Component | Bestar 2026 Fee (HKD) | Strategic Value |
|---|---|---|
PTC Incorporation | $5,500+ | Includes Gov fees & BRC setup |
Licensed Co-Sec | $2,400 / yr | Ensures 100% TCSP compliance |
Registered Address | $2,100 / yr | Premium CBD business presence |
Family Office Audit | Quote-based | High-transparency for beneficiaries |
4. Why Choose Bestar Over "Big Box" Firms?
Large providers often delegate your family’s most sensitive matters to junior associates. At Bestar, our Private Tax & Family Office Leader, Chris Wang, and our team of senior CPAs provide direct, partner-level attention.
Local Depth, Global Reach: With a strong presence in Singapore and Malaysia, we are uniquely positioned for families with cross-border Asian interests.
Proactive Compliance: Our automated system tracks your NAR1 filings, BRC renewals, and AGM deadlines so you never face late-filing penalties.
Summary: Future-Proof Your Family Legacy
A Private Trust Company in Hong Kong is the most robust tool available for modern wealth management. By choosing Bestar, you are not just hiring an agent—you are gaining a thought partner dedicated to your family's long-term stability.
Secure your consultation today. Let Bestar’s specialists build the "firewall" your wealth deserves.
Next Step for You:
Trust: Logos of the HK Trustees' Association (HKTA) or STEP.
Linking: Link to our "Hong Kong Company Incorporation" and "Family Office Services" pages.
Linking: Link to the Hong Kong Companies Registry.
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