Guernsey

Channel Islands Commerical Aircraft Registry: Case History Highlighting the Advantages of Temporary Registration

Established in December 2013, “2-REG”, the Channel Islands Aircraft Registry, is the aircraft registry of the States of Guernsey. The nationality mark is ‘2’ followed by four letters, allowing for attractive registration marks.

There have been 94 registrations to date of lessor owned aircraft, corporate aircraft, including a Boeing 787-8 Dreamliner, and locally owned aircraft. The registry is also able to award Air Operator Certificates, and benefits from being party to the Cape Town Convention, the international aviation standard relating to aviation assets.

The Registration Process

The process for aircraft registration involves a review of corporate and aircraft due diligence. This applies to the 40 countries where financial services business regulations are considered equivalent to local Guernsey standards.

For countries not on this list, the 2-REG requires a Resident Agent in Guernsey, who must be a licensed fiduciary, to be appointed to undertake this work.

What is the Role of a Resident Agent?

The Resident Agent is required to undertake a review of due diligence (corporate and aircraft) to the standard expected by the Guernsey Financial Services Commission, and to report their findings to the registry. In addition, the Resident Agent must act as liaison between the aircraft owner and the registry and submit the registration applications.

Dixcart Trust Corporation Limited in Guernsey is a registered Resident Agent for the 2-REG Registry.

Case Study and How Temporary Registration on 2-REG Solved a Problem

The Dixcart office in Guernsey was recently approached by a Turkish commercial air cargo carrier to act as Resident Agent for a temporary registration of an Airbus A300.

The aircraft was moving from the American FAA registry to the Civil Aviation Register of Turkey. The Turkish register required a Certificate of Airworthiness (CofA) as part of its registration requirements.

The FAA, however, has shifted policy recently and is less willing to issue documents for aircraft that are not in the United States or destined to go to the United States.

The solution was to apply for a temporary registration on 2-REG allowing the appropriate airworthiness inspections to be undertaken and a CofA issued to allow onward registration in Turkey.

On receipt of properly certified due diligence relating to: the company, directors, ultimate beneficial owners and the aircraft, a full compliance review was carried out by Dixcart and this formed the basis of the report to 2-REG, in addition to the relevant registration forms being submitted.

Dixcart Guernsey and International Business Support

This type of fiduciary work it is a good example of the wider support that Dixcart in Guernsey, and other offices across the Dixcart Group, offer to corporate, private and family office clients.

It also reflects the wider business friendly and ‘can do’ environment that the Guernsey Government has fostered and which helps to support and deliver global solutions. These include the 2-REG aircraft registry, the Channel Island Securities Exchange, HNWI relocation and domicile, and highly respected fiduciary, captive insurance and fund sectors.

Additional Information

If you require any additional information on this topic, please speak to your usual Dixcart contact or to Bruce Watterson at the Dixcart office in Guernsey: advice.guernsey@dixcart.com.

Isle of Man Financial Assitance Scheme – Enabling Entrepreneurs to Innovate on the Island

The Isle of Man has long been known as a welcoming home to entrepreneurs and innovators. It has achieved this over the years by playing to its strengths, having strong communication with the private sector, supporting new ideas and new ways of thinking, changing legislation quickly, and because it has wanted to lead not follow. E-business, for example, has found a home in the Isle of Man, with many companies becoming significant employers on the island.

The Financial Assistance Scheme

For Isle of Man Companies wanting to expand, the Financial Assistance Scheme (FAS) aims to encourage diversification of the local economy by providing a range of grants and soft loan support to eligible businesses.

The Isle of Man FAS provides support to eligible businesses that meet the commercial and environmental criteria. The criteria is a mix of employment, benefit to the community, on island expenditure, investment etc.

The FAS encourages businesses on the island to adopt new technologies and practices. The opportunity is not only to encourage new projects but also to develop projects in conjunction with private sector partnerships and contacts.

The Isle of Man FAS is discretionary and offers a generous package of support to qualifying businesses.  The general grants that are available include:

Capital Grants

  • Up to 40% of the cost of new buildings, building improvements and new plant and machinery, including hardware and software.

Operating Grants

  • Up to 40% of non-recurring costs associated with the establishment of a project (e.g. special first year expenses and excluding statutory changes).
  • Up to 40% of the costs of specific new marketing ventures.
  • Up to 40% of the costs of implementing quality standards, energy conservation etc.
  • Up to 40% of training costs directly associated with purchased plant and equipment.
  • Up to 40% of the cost of renting a factory from a private developer for the initial period of a new project.
  • For finance and professional services, ICT, creative and e-business, where 80% of turnover is off-island, rent support of up to 100% is available for 12 months where accommodation is situated in a regeneration area, excluding Douglas.
  • Training grants are considered but must relate to a project with which financial assistance is being given.

The above incentives are apply to existing and new ventures and can be applied for on an annual basis.

Eligibility

The Isle of Man may provide assistance to an eligible business where, in its opinion, “the eligible business undertakes, or will undertake, an economic activity in the island; the assistance is likely to encourage sustainable economic growth in the island; and the form and amount of the assistance is reasonable having regard to all the circumstances”.

Additional Information

If you would like additional information regarding how Dixcart Management (IOM) Limited can help you with an application to the Isle of Man FAS, please contact Steve Doyle: advice.iom@dixcart.com or your usual Dixcart contact.

Dixcart Management (IOM) Limited is licensed by the Isle of Man Financial Services Authority.