Trusts as part of a business structure
Trusts as part of a business structure
Although trusts are often considered to be tools for holding assets belonging to individuals, they also have interesting uses in the context of international business.
Some jurisdictions even offer specific business/purpose trusts. This is because it can often be very useful to move companies, assets or commitments outside the normal corporate structure.
For securitisation and de-consolidation
In securitisations, it is necessary to ensure that the issuer of a security is bankruptcy- and management-remote from the originator of the security. In other cases it can be useful for tax or accounting reasons to de-consolidate an operating company (for example a financing vehicle supporting a manufacturer’s products) through the transfer of that vehicle to a neutral owner.Control of joint ventures
Trusts can also be useful to control a joint venture. The trust holds some or all of the equity of a business vehicle whilst regulating profit shares contractually between the nominal partners.
Operating a business-driven trust calls for in-depth international business experience, since the trustee may be asked to exercise discretion in sensitive commercial situations. Rosetrust has this experience and can design and operate these structures for you.
Please contact us for more information about how a trust could help you achieve your business objectives.