What is a Family Investment Company (FIC) and Why Are They Becoming So Popular?

What is an FIC?

A Family Investment Company (FIC) is a private company structure designed for families who want to manage, preserve, and grow wealth across generations in a tax-efficient and controlled manner. Unlike trusts, which are often associated with higher upfront tax costs and more rigid structures, FICs provide a corporate framework that combines governance flexibility with estate planning benefits.

The fundamental idea behind an FIC is separating control from economic ownership. This is achieved by issuing different classes of shares i.e. voting shares and economic shares.

This dual-share class structure provides trust-like benefits without the complexity or tax burden of a trust.

Why Are FICs Used?

Families are increasingly choosing FICs because they combine control, flexibility, and tax efficiency.

1. Control: Parents or senior family members retain decision-making power while transferring wealth.
2. Succession Planning: FICs allow a smooth intergenerational transfer of value without losing oversight.
3. Tax Benefits:
* No immediate Inheritance Tax (IHT) on setup (unlike trusts).
* Potential long-term tax efficiency by holding investments in a corporate environment.
4. Asset Protection: Bespoke constitutional documents allow additional safeguards such as transfer restrictions and family agreements.
5. Flexibility: The structure can be tailored to family needs and adjusted as the family evolves.

How FICs Compare to Trusts

​• Trusts often involve upfront IHT charges and ongoing reporting requirements.
​• FICs are more flexible under company law and can be adapted for investment strategies, share transfers, and governance rules.

In short: A Family Investment Company is a modern solution for families who want to manage wealth collaboratively while maintaining clarity on control and ownership.


How Porte Can Help

Setting up a FIC correctly requires a careful balance of tax planning, governance, and family objectives. At PortE, we guide families through every step — from structure design and funding strategy to governance frameworks and compliance.

If you’re considering an FIC or reviewing your current wealth structure, talk to our experts. We’ll help you create a strategy that works for your family today and for generations to come.

Contact us to start the conversation.