Family Investment Companies

Family investment companies are often used by families to hold, manage and pass on wealth through a corporate structure. They can provide a framework for investment control, succession planning and long-term family governance.

What is a family investment company?

A family investment company is usually a private company established to hold family assets, investments or property. Different family members may hold different classes of shares, allowing economic value, voting control and future growth to be structured separately.

Why families use them

Families may use family investment companies to retain control over assets, introduce younger generations to ownership, support succession planning and create a formal structure for long-term investment decisions.

Control and share structure

The share structure is central to how the company operates. Founders may retain voting control while allowing future growth or economic benefit to pass to children or other family members through separate share classes.

Tax and legal considerations

Family investment companies require careful tax, legal and accounting advice. Corporation tax, inheritance tax, income tax, capital gains tax and anti-avoidance rules may all be relevant depending on the structure and circumstances.

Governance and administration

A family investment company should be properly maintained with board minutes, statutory records, accounts, tax filings and clear decision-making processes.

Is a family investment company suitable?

A family investment company may be appropriate for families with meaningful assets, long-term succession objectives and a desire to retain control. It is not suitable for every family and should be considered alongside trusts, wills, estate planning and wider family objectives.

Key point

A family investment company can support succession and investment control, but it should be designed with clear share classes, proper governance and specialist tax and legal advice from the outset.