Ready For Take Off - Bermuda Offshore Aircraft Registration

All aircraft must be registered with a national aviation authority in accordance with the Convention on International Civil Aviation ("ICAO") for the purposes of identifying the nationality assigned to the aircraft, and designated by the registration mark appearing on the aircraft. Careful consideration should be given to the choice of jurisdiction for registration of an aircraft due to a variety of factors, including, but not limited to, political stability, the reliability and flexibility of the legal remedies available, the reputation of the civil aviation authority and its regulatory standards, and financial and tax considerations.

Why register in Bermuda

Bermuda has established itself as a leading jurisdiction in a number of international business sectors, including insurance, reinsurance and aviation and shipping. Bermuda has a history of political stability and an active, business friendly Government, committed to transparency and global compliance standards. The legal system is based on the common law of England & Wales and disputes may be settled by way of arbitration or litigation, having a final right of appeal to the Privy Council in London. Additionally, Bermuda is a tax neutral jurisdiction, with no corporation, profit, or capital gains tax. An exempted undertaking, including one which owns or leases aircraft on the Bermuda register of aircraft (the "Register"), may apply to the Bermuda Government for an undertaking valid until 2035 that, in the event such tax is implemented, it shall not be applicable to the relevant undertaking.

The Bermuda registration marks, VP-B or VQ-B with two subsequent letters, are considered to be a neutral or "low-profile" mark and are accepted internationally. Information pertaining to the registered owner of an aircraft will only appear on the certificate of registration but will not otherwise be made publicly available.

Bermuda is a well-known jurisdiction for aviation financing. Institutional lenders are familiar with a variety of Bermuda special purpose vehicles used in conjunction with aircraft acquisitions and/or fleet renewals. Institutional lenders are confident that Bermuda's strong legislative structure will ensure that the security rights of the lender are recognised and that the Bermuda courts will consistently apply such rights.

The Aircraft Register

The Register was created in 1931 and has established itself as a Class 1 register under the FAA's Flight Standard Service International...