While the client manages the offshore company, he must be cautious in maintaining its distinct identity as a trustee to prevent any accusation about the integrity of the structure. Most offshore jurisdictions need a grantor. To appoint licensed trustee companies to perform as trustee of an offshore trust if the trust is to be domiciled in that jurisdiction.

In some jurisdictions, however a client may give birth to a separate offshore company (a private trustee company) for the special purpose of performing as trustee of his or her trust or trusts, instead of appointing a licensed offshore trustee company. There are many circumstances where it may be advisable for a client to establish private trustee companies.

Each country provides special provisions to make sure that setting up private trustee companies and its functioning are easy, as well as being efficient. Extremely important is the fact that, in most countries there is no need to develop a separate purpose trust to keep the shares of a private trustee company, as the distinct forms of corporate ownership of an offshore company in the concerned country make this extra entity dispensable.

Each and every country has its own relevant laws and regulations regarding setting up private trustee companies. Most laws and regulations includes special provisions for a client to develop an international company (a private trustee company) for the purpose of performing as a trustee of an international trust, without being independently licensed in the particular country as a trustee company.

Before registering as an international trust in a particular country, a trust must form a nexus with the jurisdiction of that particular country. The governing laws and regulations requires a trust to appoint either a licensed trustee company, or an international company in the relevant country, as its trustee. The international company is allowed to act as trustee for no more than three trusts, but otherwise must not conduct business as a trustee company.

When setting up private trustee companies, therefore, the client can first introduce his own specially structured international company. That international company is authorized for appointment as trustee of the client's trust, making the trust authorized for registration as an international trust in the concerned country.

The structure of the international company will be based on the level of control the client aspires to exercise over the operation of the company, and thereby the trust. Control over an international company is normally the responsibility of the shareholders and the directors. If you are ready to understand the laws and regulations prevailing in a specific country and invest the required expertise, setting up private trustee companies can be a trouble-free process.