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If you are looking to register a company in the aviation or aircraft leasing industry, and expanding your horizons across international boundaries, you are sure to face a host of attractive jurisdictions. A growing number of investors are realizing the advantages of limiting their liabilities by pursuing aircraft ownership in corporate form. By establishing a corporation for the purpose of asset ownership and liability limitation in Luxembourg, investors enjoy a host of benefits granted by the attractive legal, legislative, regulatory, and taxation frameworks while doing business in Luxembourg.

Selection, Acquisition, and Registration 

The business aviation industry is subject to various regulations to uphold the safety and security of both owners and clients. Structure preference will depend on the type of aircraft, its primary use, VAT considerations, and other factors. Registration of an aircraft in the form of a company allows for maximum asset protection. 

In Luxembourg, there are many ways to set-up a special purpose vehicle to hold aircraft and facilitate leasing activities to other legal companies within the same group or organization. To accomplish a successful aircraft registration, you need a seasoned consulting firm guide you through the intricacies of setting up an aviation company in Luxembourg. 

Aviation Registration and Operation 

An aircraft must have a national identity. Given this requirement, it must be registered in the country you wish to operate. A nationality affords an aircraft with the benefits of the country where it is registered. This includes transit and traffic rights contracted by Luxembourg with other countries. By rule, an aircraft can only be registered in one country. 

A consulting firm with expertise in aviation service will be able to provide you assistance  throughout the entire process, from the aircraft selection process to registration in Luxembourg. 

  • Set-up meetings with aircraft brokers to assist clients an aircraft that meets their travel needs and budget. 
  • Consulting on the best Luxembourg company structure to hold an aircraft, scrutinizing all regulatory and taxation provisions that will influence the administration of an aircraft. 
  • Facilitate the introduction to various service providers, in the event financing is needed. 
  • Incorporating a special purpose limited liability structure for aircraft acquisition purposes. A consulting firm connects a client to an asset lawyer to ensure protection of assets during the acquisition process. The process involves expert negotiation while crafting the Aircraft Purchase Agreement (APA).
  • Assistance in the selection of an aircraft manager or operator. 
  • Provide assistance in opening a dedicated escrow service to be used by both aircraft buyer and seller. 
  • Facilitate opening a bank account for registered asset ownership company. 

Aviation Management and Operation Services

A consulting firm will be helpful in ensuring the smooth operation and management of an aviation company registered in Luxembourg. 

  • Introduce clients to a skilled operator with extensive knowledge of existing aviation industry regulatory regime. 
  • Provide continuous support to owner and aircraft operator. This will include handling crucial tasks including insurance renewals and claims, evaluation and review of engine and other parts, and a thorough review of air frame maintenance contracts. 
  • Act as liaison with the aircraft registry and aircraft operator to ensure all licenses are up-to-date and validate, ensure pertinent documents are submitted on time to the registry, and ensure all relevant fees are paid. 
  • Facilitate the issuance of a VAT compliance aircraft lease and keep track of invoices based in the number of hours an aircraft is in use. 
  • Ensure accurate VAT returns are filed on time. 
  • Stand as representative to answer any queries by custom authorities. 
  • Provide continuous accounting, VAT, and tax compliance consulting, including financial management and reporting whenever required or needed. 

Aviation Administration Services

  • Bookkeeping and legal accounts preparation
  • Corporate secretarial services 
  • Tax compliance 
  • Import and export requirements
  • Payroll and HR management

Aviation Leasing Services

In the event that an aircraft beneficial owner wish to make the aircraft available for charter to third parties during laytime, a consulting firm will help in facilitating proper and efficient leasing process. For an aircraft to be legally chartered to third parties, an Air Operating Certificate must be obtained first. 

By obtaining an Air Operating Certificate, a beneficial owner may offset any operational costs through charter fees. An experienced consulting firm has a vast network of connections globally to help clients secure an Air Operating Certificate from a legitimate Air Operating Certificate holder. Additionally, a consulting firm will be able to facilitate the licensing of aviation companies that seek to obtain an Aircraft Operating Certificate in Luxembourg. 

The Grand Duchy of Luxembourg is an attractive place to finance, lease, and register aircrafts due to its favorable legal and tax frameworks. As an independent consulting firm with a solid track record in the aviation and yachting industry, Damalion will be your expert advisers for all your private jet or corporate jet registration, structuring, and management needs. Reach out to a Damalion expert today to learn how we can help in smoothly setting up your Luxembourg aviation company. 

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.