Wednesday, November 14, 2012

BVI Adopt New Laws on Aicraft Registration

New laws to support the expansion of the aircraft registry of the British Virgin Islands entered into force, enabling locally-registered operators to secure aircraft financing. New pieces of the BVI legislation, named the Mortgaging of Aircraft and Aircraft Engines Act, 2011, and the Mortgaging of Aircraft and Aircraft Engines Regulations, 2012, allow aircraft operators to register their ownership in the jurisdictions under three separate registries – for aircraft, their engines, and their mortgages. This will give to aircraft operators the opportunity to receive financing from lending institutions, which require that legal ownership should be demonstrated before providing financing.

The British Virgin Islands has been known as tax-efficient jurisdiction for aircraft holding companies, and in the last year the government launched the development of the local Aircraft Register. The BVI government expects that, with the new legislation, the jurisdiction will be able to use its position as a holding company domicile to encourage international operators to register their aircraft and engines in the BVI. 

According to Harney’s law firm, the new legislation, and especially its development providing for the filing of priority notices for credit institutions “paves the way for new business opportunities which complement and support the British Virgin Islands’ position as the premier offshore corporate domicile with over 850,000 companies incorporated to date.”

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