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| IN THIS ISSUE: |
SEPTEMBER 2008 - VOL 3 |
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OFFSHORE Annual Returns for Mauritian Domestic Companies – What does it entail?
Directors Responsibilities: A position INFRASTRUCTURE Corporate Tax Return and Advance Payment System – A more Sophisticated System AVIATION NEWS Aircraft Leasing and Finance in Mauritius - A clever structuring alternative OTHER NEWS
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Aircraft Leasing and Finance in Mauritius - A clever structuring alternative
Historically, Mauritius has not been an ideal location in which to base aircraft-leasing operations, as while the legislation was in place to establish such aviation operations, the regulatory personnel necessary to conduct the required registration certification processes were not readily available.
Despite these constraints, however, there are a number of specialized “aviation focused” service providers that have emerged in Mauritius. These service providers range from aviation asset-owning companies, to complete aviation crew administrative offices, to fully-fledged international aircraft-leasing companies.
The Mauritian Department of Aviation is presently reviewing its approach to the establishment of global aviation leasing operators and a vast improvement is shortly expected within this niche area of international financial services.
Mauritius, with its progressive tax system and significant number of Double Taxation Avoidance Treaties that are already in place, offers Aircraft Lessors and Financiers an attractive base upon which to establish their international leasing business.
Traditionally, an aircraft-leasing operation will be conducted through a Mauritian Global Business License 1 company (“GB1”), and, in terms of present guidelines, such a company will need to have a minimum paid-up share capital of USD500 000 before it may commence its leasing business.
There are a number of Mauritian-based International Banks that understand the financing structures required by the GB1 aircraft-leasing company, and, dependent on the planned area of operation, the security required by the banks is fairly standard.
Obviously, many operators access funding outside of Mauritius and, dependent on the locality of these finance providers, further fiscal benefits may be obtained for both the financier and the lessor.
Due to the specialized nature of the administrative process surrounding aircraft-leasing, only a small number of Mauritian licensed Management Companies offer the full service complement. Through more than 10 years of experience gained through its sister aircraft-leasing company, Inter-Ocean Aviation Finance Corporation, Inter-Ocean Management Limited is able to offer a full range of services. These services include the tracking and monitoring of all aircraft costs, crew salary payments, insurance negotiation, and payments and financial structuring.
With constraints placed by most African countries on funding aircraft purchases, together with the movable nature of aircraft, Mauritius is fast becoming an attractive location in which to establish an aircraft-leasing company. Administrative costs are generally far lower here than in competing jurisdictions and the base knowledge of providing those services is rapidly expanding within Mauritius. In addition, once the Mauritius Department of Civil Aviation has achieved its objective of being a location of choice for aircraft registration, the registration of large high-end value aircraft will surely follow.
For more information on the services provided by the Inter-Ocean Aviation Finance Corporation and Inter-Ocean Management Limited, please contact John McIlraith on johnmc@inter-oceanmgt.com or call + 230 210 9334.
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| © All material displayed in this brochure, including, without limitation, articles, text, photographs, images and\or illustrations, (collectively, the Content) are protected under Mauritian and foreign copyright or other laws, and are owned by Inter-Ocean Management Limited, its licensors or the party accredited as the provider of the Content. Disclaimer: The information contained in this document is for general guidance and interest only and is not intended as authority or a substitute for specific advice in considering the legal effects of any particular structure or product. Anyone intending to base a decision on the information as contained in this document should therefore do so with professional advice. | ||||
