N-REGISTRATION – AIRCRAFT TRUST / VOTING TRUSTS

N-Registration of Aircraft

The N-Registration of non U.S citizen aircraft is provided for our international clients. For these clients, we create a Voting Trust or Aircraft Trust.

Criteria For N-Registration

A person may not “N” Register an Aircraft on the FAA Registry in the United States unless the aircraft is (a) owned by a citizen of the US, including US “citizen corporations”; (b) owned a lawfully admitted permanent resident of the US; or, (c) owned by a non-citizen corporation when the corporation is organized under the laws of the US and the aircraft is based in, and primarily used in the US. See 49 U.S.C. 44102, 44103, and 14 CFR § 47.3 of the FAR. Essentially, any corporation which owns the Aircraft must be either a U.S. “citizen” corporation, or, if it is a foreign corporation, it has to qualify to do business in the US as well as use the aircraft primarily in the US.

In order to be considered a US citizen for FAA purposes, at least 2/3 of the Board of Directors and Officers must be citizens of the United

N-Registration Qualifications

To qualify our non-citizen clients, the common stock shares are issued to a Voting Trustee who is also a US citizen. This Voting Trustee issues Certificates of Beneficial Stock Ownership to the actual non-citizen owner of the Delaware corporation. Once these conditions are met, the Delaware corporation is considered to be a “citizen” by the FAA, and the Aircraft is allowed to be registered on the U.S. Registry. (See 14 CFR §47.8 and related subsections of the FAR’s). Of course, to remain registered with the FAA, the Aircraft must also be maintained to the manufacturer’s and U.S. standards.

We assist our foreign clients by establishing a US citizen corporation or a trustee corporation to hold title to the aircraft on their behalf, thereby enabling the aircraft to be “N” Registered with the FAA. At the same time, our clients retain full operational control of the aircraft pursuant to executed and FAA recorded operating agreements. The trusts and corporate structures that we establish are all specifically approved by the FAA, and following the closing, our clients are free to fly worldwide.

Included In the Price for Voting Trusts

  • Formation of a Delaware Corporation including Corporate Book, Seal, Certificate of Incorporation, Organizational Minutes, Bylaws, etc. (including filing fees and costs)
  • Drafting and/or review of the Aircraft Purchase Agreement
  • Drafting and recording of Voting Trust Agreement and Beneficial Ownership Certificate(s) to non-citizen owner(s)
  • Voting Trustee Fees and Costs through December 31.
  • Drafting of Aircraft Trust Agreement
  • Drafting of Aircraft Lease/Operating Agreement
  • Drafting of Indemnity Agreement
  • Drafting of Beneficial Owner Verification
  • Investigation and preparation of OFAC Agreement and Federal KYC compliance/search
  • Drafting of Flight Wire/Declaration of International Operations (if necessary)
  • Aircraft Registration on the FAA Registry
  • Oversee closing and processing of documents as necessary with the FAA
  • All FedEx/courier charges arising from closing
  • Annual Fee for year of incorporation (Annual Charges owed each January 1)

AIRCRAFT TRUSTS

For our international clients who wish to “N” Register their aircraft with the FAA, we offer the option of creating an Aircraft Trust.

A person may not “N” Register an Aircraft on the FAA Registry in the United States unless the aircraft is (a) owned by a citizen of the US, including US “citizen corporations”; (b) owned a lawfully admitted permanent resident of the US; or, (c) owned by a non-citizen corporation when the corporation is organized under the laws of the US and the
aircraft is based in, and primarily used in the US. See 49 U.S.C. 44102, 44103, and 14 CFR § 47.3 of the FAR. Essentially, any corporation which owns the Aircraft must be either a U.S. “citizen” corporation, or, if it is a foreign corporation, it has to qualify to do business in the US as well as use the aircraft primarily in the US.

We assist our international clients by placing title to the aircraft with a trustee. Aircraft Trustee Services, Inc. holds title to the aircraft in its name, solely as trustee of a trust created for specifically for the clients, who are the named grantors/beneficiaries of the trust. At the same time, Aircraft Trustee
Services, Inc. signs an operating agreement with the trust beneficiaries. Our clients retain full operational control of the aircraft pursuant to executed and FAA recorded operating agreements. The trusts and corporate structures that we establish are each specifically approved by the FAA, and following the closing, our clients are free to fly worldwide.

Title

  • Drafting and/or review of the Aircraft Purchase Agreement
  • Drafting and recording of the Trust Agreement
  • Drafting and recording of the Owner-Trustee Affidavit
  • Drafting of Aircraft Lease/Operating Agreement
  • Investigation and preparation of OFAC Agreement and Federal KYC compliance
  • Drafting of Flight Wire/Declaration of International Operations (if necessary)
  • Aircraft Registration on the FAA Registry
  • Trustee Fees and Costs through December 31
  • Oversight of closing and processing of documents as necessary with the FAA
  • All FedEx/courier charges arising from closing
  • Annual Fee for year of incorporation (Annual Charges owed each January 1)

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