The new legislation
The Aruba Registry has recently enacted some new legislation to increase the flexibility of the aircraft registration program in Aruba and to meet demands from the industry. The changes were implemented in the aircraft registration regulation. This article will give you an overview of the key elements that have been implemented.
Qualifying companies for registration in Aruba
Prior to these changes only natural persons that are resident of Aruba or Aruba legal entities qualified for registration. The new regime expands the definition of qualifying companies to include:
Companies which are member of (one of) these states can qualify for registration, provided these companies have and maintain a qualifying local representatives established in Aruba.
U.S. Owner Trustees U.S. Owner Trustees also qualify for registration in Aruba under this new regime.
The old regime limited registration by either Aruba owners or Aruban lessees (“houders). The new regulation also allows for aircraft manager or operators to qualify for registration. In all these instances the Registry has to verify the underlying documentation that the manager or operator has operational control of the aircraft, which is a safety oversight requirement.
Qualifying local representatives
Qualifying local representatives are limited to: lawyers, accountants and trust-offices that are directly or indirectly under regulatory supervision in Aruba. Having a qualifying local representative will, in principle, not create a taxable presence for the foreign company registering an aircraft in Aruba.
IDERA domestic registry
The new regulation creates the possibility for the Registry to maintain a separate registry for IDERA’s filed with the Registry. While the Cape Town Convention does not require domestic legislation for the creation of such registry, it was deemed desirable by the Registry to provide for this to create an extra level of comfort for financiers.
Pledge/mortgage domestic registry
The regulation also allows for a separate registry to be created to file any other legal acts and/or notifications that in any way is relevant for the legal status of an aircraft. These include the filling of security interest rights in the form on an Aruba right of first pledge or an Aruba right of first mortgage.
Other rights or notices that that can be filed with the registry include: fractional ownership, engine ownerships or rights allocated to a U.S.-(owner) Trustee. The latter was included to facilitate the recordal of the rights of U.S. (owner) Trustees in Aruba.
Gomez & Bikker
Gomez & Bikker advised the Registry with the introduction of this legislation. For more information of aircraft registration in Aruba or on the possibilities of structuring under this new regime contact: Lincoln D. Gomez @ Gomez & Bikker http://www.gobiklaw.com or Jorge Colindres, CEO Registry of Aruba http://www.airsafetyfirst.com