Canadian aircraft owned by foreign company

[digits_]

Hi all,

can a privately Canadian registered aircraft be owned by a foreign company? Canadian person P would operate/fly the canadian registered airplane C, based in Canada. The plane would be owned by foreign company F.

F would do this, because P is a contractor for F, and has to travel quite a bit.

I could only find CARs references regarding the registered owner. The registered owner in my example would be P.

I'd be happy to pay an accountant or lawyer for a more in depth analysis, but I wouldn't know who to ask

PMs are welcome as well.

Regards,
digits

[Longtimer]

it doesn't matter who owns the aircraft, all that matters is who is has the operating licence. A lot of Canadian companies operate foreign owned aircraft but then lease them. It the licence that matters. Goto the CTA for more information re licencing.

[photofly]

Transport Canada doesn't care who is the beneficial owner of an aircraft is, they do care whose name is on the C of R. That has to be a Canadian.

[digits_]

it doesn't matter who owns the aircraft, all that matters is who is has the operating licence. A lot of Canadian companies operate foreign owned aircraft but then lease them. It the licence that matters. Goto the CTA for more information re licencing.

In my example, P would be flying himself without any paying pax. I don't think the CTA would be involved for that.

Transport Canada doesn't care who is the beneficial owner of an aircraft is, they do care whose name is on the C of R. That has to be a Canadian.

Thanks! Always a bit harder to ascertain that a regulation does *not* exist.

[pelmet]

I wonder if an American wants to own and fly an aircraft up here for private purposes....what can be done.

[Cessna 180]

I wonder if an American wants to own and fly an aircraft up here for private purposes....what can be done.

they N register it themselves, or they use a trust company to own the aircraft so it can be registered in Canada. The same thing thousands worldwide do to have their aircraft N registered (look how many aircraft the Bank of Utah "owns").

[photofly]

I wonder if an American wants to own and fly an aircraft up here for private purposes....what can be done.

There are rules about how long a foreign registered aircraft can be kept in Canada - 202.42. It's a bit difficult to interpret. I think it's ok for a small plane as long as you're not a dual national or permanent resident of Canada, but then you can't stay in Canada for that long, anyway.

[pelmet]

I wonder if an American wants to own and fly an aircraft up here for private purposes....what can be done.

they N register it themselves, or they use a trust company to own the aircraft so it can be registered in Canada. The same thing thousands worldwide do to have their aircraft N registered (look how many aircraft the Bank of Utah "owns").

Just confirm that they can crate a trust company that owns the aircraft and then it can be Canadian registered and based in Canada.

If it is American registered, I believe there are restrictions on how long it can be in Canada.

[Cessna 180]

If you're here on a work visa (not PR), then you can essentially keep the plane here forever. If you're a citizen or PR, then you're suppose to only keep the plane in Canada for a certain number of days. In practice, this is unenforced based on the number of N registered planes in Canada, as well as around the world.

[valleyboy]

I know a cpl tourist operators who flew their american registered a/c using canadian pilots, the aircraft always went back to the USA and I'm pretty sure there was something like 6 months. They would just make the time limit during their season.

I know it might be difficult to get information on foreign ownership given the present shut down but I do suggest if this is more that just a casual inquiry spend the bucks and get an aviation lawyer to answer your question so there are no surprises. There might be some "beautiful" minds here, lawyers and experts are few and far between.

[schnitzel2k3]

I believe the people who care are Border Services when an N registered jet is hangared here on a permanent basis, and even then they barely care.

As long your owner has a Canadian address to register the jet to, it should be fine.

[Heliian]

I know it might be difficult to get information on foreign ownership given the present shut down but I do suggest if this is more that just a casual inquiry spend the bucks and get an aviation lawyer to answer your question so there are no surprises. There might be some "beautiful" minds here, lawyers and experts are few and far between.

No, don't spend the money on a useless lawyer, just email transport canada re: aircraft registrations.

The regulations are fairly clear here.

Qualifications to Be Registered Owner of a Canadian Aircraft
202.15 (1) Subject to subsection (2), any Canadian is qualified to be the registered owner of a Canadian aircraft.

(2) No individual is qualified to be the registered owner of a Canadian aircraft unless the individual is at least 16 years of age.

(3) An entity that is not Canadian but is incorporated or formed under the laws of Canada or a province is qualified to be the registered owner of a private Canadian aircraft where

(a) the entity provides the Minister with a certified copy of the entity’s certificate of incorporation or other equivalent document issued under the laws of Canada or a province pursuant to which the entity was incorporated or formed;

(b) the entity meets the requirements, specified in the Aircraft Marking and Registration Standards, respecting the keeping and preservation of records;

(c) subject to subsection (4), the entity meets the reporting requirements specified in the Aircraft Marking and Registration Standards; and

(d) while the aircraft is registered in Canada, the flight time accumulated in Canada by the aircraft is not less than 60 per cent of the flight time accumulated by the aircraft at the end of each six-month period.

There is your answer, you need to be Canadian or "incorporated or formed under the laws of Canada or a province"

[digits_]

I know it might be difficult to get information on foreign ownership given the present shut down but I do suggest if this is more that just a casual inquiry spend the bucks and get an aviation lawyer to answer your question so there are no surprises. There might be some "beautiful" minds here, lawyers and experts are few and far between.

No, don't spend the money on a useless lawyer, just email transport canada re: aircraft registrations.

The regulations are fairly clear here.

Qualifications to Be Registered Owner of a Canadian Aircraft
202.15 (1) Subject to subsection (2), any Canadian is qualified to be the registered owner of a Canadian aircraft.

....

There is your answer, you need to be Canadian or "incorporated or formed under the laws of Canada or a province"

These rules are all about the registered owner, not about who actually owns the airplane.

A lease is a common example, the registered owner is the person leasing the plane, the actual owner is the one you pay monthly.

[Heliian]

Hi all,

can a privately Canadian registered aircraft be owned by a foreign company? Canadian person P would operate/fly the canadian registered airplane C, based in Canada. The plane would be owned by foreign company F.

F would do this, because P is a contractor for F, and has to travel quite a bit.

I could only find CARs references regarding the registered owner. The registered owner in my example would be P.

I'd be happy to pay an accountant or lawyer for a more in depth analysis, but I wouldn't know who to ask

PMs are welcome as well.

Regards,
digits

These rules are all about the registered owner, not about who actually owns the airplane.

A lease is a common example, the registered owner is the person leasing the plane, the actual owner is the one you pay monthly.

It wouldn't matter who paid for the plane, you would be the registered owner.

I understand you're trying to get around the whole "foreign owned" problem but they've put up the regulations to prevent it. If you really, really want to skirt the ownership rules it'll cost you in setting up shell corporations and dubious chain of ownership documents so that you don't steal their plane in the end.

[digits_]

Hi all,

can a privately Canadian registered aircraft be owned by a foreign company? Canadian person P would operate/fly the canadian registered airplane C, based in Canada. The plane would be owned by foreign company F.

F would do this, because P is a contractor for F, and has to travel quite a bit.

I could only find CARs references regarding the registered owner. The registered owner in my example would be P.

I'd be happy to pay an accountant or lawyer for a more in depth analysis, but I wouldn't know who to ask

PMs are welcome as well.

Regards,
digits

These rules are all about the registered owner, not about who actually owns the airplane.

A lease is a common example, the registered owner is the person leasing the plane, the actual owner is the one you pay monthly.

It wouldn't matter who paid for the plane, you would be the registered owner.

I understand you're trying to get around the whole "foreign owned" problem but they've put up the regulations to prevent it. If you really, really want to skirt the ownership rules it'll cost you in setting up shell corporations and dubious chain of ownership documents so that you don't steal their plane in the end.

How would a shell corporation be applicable in this situation?

The shell corporations are, from what I understand, used if the pilot lives in a country that differs from where the plane is registered. For example a Canadian pilot wants to fly a US airplane, uses a US shell company, to base his US registered airplane in Canada, to avoid an import into Canada.

In my example, the Canadian pilot contractor P would be the registered owner of a Canadian based and registered airplane. He doesn't need a company to do this.
However, contractor P doesn't have the money to finance the plane, and since contractor P will be using the plane to provide sales services to foreign company F, F decides to buy the plane and give control to contractor P.

Both P and F would be happy with P being the registered owner, and F paying for the plane.

All the regs I've found talk about the registered owner. But that's only the CARs. If there are any other Canadian acts or rules that would prevent this, I'm happy to hear about them. Which rules would P/F be skirting?

[Heliian]

Both P and F would be happy with P being the registered owner, and F paying for the plane.

So, in this case then, F would "sell" or gift you the plane so you have documentation for the importation and registration.

The plane is then yours to do what you like in the private category.

The only problem is that you would have to be careful how F and P are then billed/paid.

F can't pay you for use of the aircraft. You'll need a good accountant. TC does not like people profiting from private aircraft.

[digits_]

Both P and F would be happy with P being the registered owner, and F paying for the plane.

So, in this case then, F would "sell" or gift you the plane so you have documentation for the importation and registration.

The plane is then yours to do what you like in the private category.

The only problem is that you would have to be careful how F and P are then billed/paid.

F can't pay you for use of the aircraft. You'll need a good accountant. TC does not like people profiting from private aircraft.

The aircraft is Canadian registered, no import is required. F would pay everything. P would use the airplane when its duties for F require it. Travelling to customers, providing on site support, promo, etc. P would bill F for his time and expertise.

[Cessna 180]

If the plane is registered to a Canadian corporation, the majority (I think 75% without CTA approval) of shareholders need to be Canadian Citizens. There's a requirement to submit passports or birth certificates with the application.

In terms of tax, the CBSA is more than happy to collect GST/HST/Duty when you bring the plane to Canada for the first time. A buddy operates an N-registered jet and this is the arrangement they have made. The taxes are a separate issue from the registration.

[AirFrame]

These rules are all about the registered owner, not about who actually owns the airplane.

When is the person who actually owns the airplane not the registered owner? Why wouldn't the actual owner want to be the registered owner?

A lease is a common example, the registered owner is the person leasing the plane, the actual owner is the one you pay monthly.

By "the person leasing the plane" do you mean the person leasing it out to someone else, or the person leasing it from someone else?

[rigpiggy]

I believe the people who care are Border Services when an N registered jet is hangared here on a permanent basis, and even then they barely care.

As long your owner has a Canadian address to register the jet to, it should be fine.

Actually CBP cares not about registration, just that you pay applicable taxes. Most owners of N registered in canada use to get to there usa based winter homes, and fly there 3-4 times a year thereby keeping it legal