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Family Investment Companies (FICs)

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Family Investment Companies (FICs) are an increasingly popular vehicle for UK and international families looking to efficiently manage and transfer wealth.

A FIC is a private company limited by shares that is designed to hold family investments. It allows parents or senior family members to retain control over assets while gradually introducing children or other relatives as shareholders, often in a tax-efficient manner. Our FIC setup and support service guides you through establishing such a company and provides ongoing administration, so you can reap the benefits of this structure without the administrative complexity.

Our FIC setup and support services include:
  • Structure design & planning:
    Collaborating with legal and tax advisers, we develop bespoke multi‑class share structures aligned with your control, succession and estate‑planning objectives.

  • Company incorporation:
    We manage jurisdiction selection, company formation and drafting of Articles of Association and shareholder agreements tailored to family governance.

  • Funding & capitalisation:
    We advise on capital injections, asset transfers and shareholder loan arrangements with comprehensive documentation and regulatory compliance.

  • Ongoing administration:
    Our team takes care of statutory filings, board and shareholder meeting minutes, corporate records and director updates.

  • Accounting & reporting:
    From bookkeeping to investment income tracking and annual accounts, we tailor reporting monthly, quarterly or annually to your preference.

  • Tax liaison & compliance:
    We work closely with tax advisers to ensure efficient cross‑border reporting and optimise your FIC structure over time.

  • Share transfers & succession:
    We manage gifting or sale of shares - including valuation, paperwork and tax compliance - supporting your generational planning.

Discover how tailored wealth structures can secure your future

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Benefits of a Family Investment Company (FIC)

Control with succession

A FIC allows you to centralise family investments under one entity where you (and other senior family members) can retain control as directors and voting shareholders. Meanwhile, children or heirs can be introduced as non-voting shareholders who will benefit from the growth of assets. This structure strikes a balance between passing on wealth and not handing over control prematurely.

Cost-effective structure

Running a FIC can often be more cost-effective and straightforward than establishing a complex trust, especially for holding investment portfolios. Company administration and accounting are predictable and scalable. There is also no perpetuity limit (as with some trusts), and the company format is familiar to many advisors and banks.

Flexibility

The FIC structure is highly flexible, you can use it to hold a variety of assets (from equities and bonds to real estate or even operating businesses). You can adjust dividend policies, recapitalise, or restructure as family needs change. We make sure that as you exercise this flexibility, all formal requirements are met so the structure remains robust.

Privacy and asset protection

A properly structured FIC can offer a degree of privacy – for instance, if an unlimited company is used or if the shares are held via nominee arrangements or trusts, the family’s affairs can be kept relatively confidential. Additionally, the limited liability nature of a company provides a layer of protection; the family’s exposure to investment risks is essentially capped at the capital invested in the company.

Professional management and continuity

With Praxis supporting your FIC, you gain professional corporate governance and administration. This helps ensure the company is managed to high standards, which can be particularly useful if family directors are not experienced in running companies. Our involvement also adds continuity therefore, the FIC’s administration remains steady even as family roles change over the years.

Tax efficiency for generational wealth transfer

FICs can be an effective tool in estate planning. For example, parents can loan or invest funds into the company without immediate inheritance tax charges that might apply to a trust settlement. Future growth of those investments accrues to the next generation’s shares, potentially reducing the taxable estate of the parents. Profits inside the company are subject to corporation tax (which may be lower than personal income tax rates), and dividends can be paid out flexibly. (Always seek professional tax advice for your situation).