CONGO BRAZZAVILLE Law and Practice Contributed by: Claudy Monja and Sarah Razafindrafito, John W Ffooks & Co
a settlor assigns funds as security for the execution of an obligation. The funds must be deposited into a blocked account opened in the name of the creditor in the books of an approved finance company. 2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register The interests of the owner (legal or beneficial) or a les - sor of an aircraft may be noted on the Aircraft Register. The main effect of such notation would be making the interests public, which could reduce their effective - ness against third parties. 2.3.2 Registration If the Owner Is Different From the Operator An aircraft will be registered domestically only if it is at least 51% owned by (i) a natural person who is a national of the Republic of Congo; or (ii) a legal person incorporated under Congolese law. However, exemptions may be granted in exceptional cases by the ANAC. 2.3.3 Aircraft/Engine-Specific Registers Leases concerning aircraft or engines must be regis - tered on the Aircraft Register. 2.3.4 Registration of Leases With the Domestic Aircraft Registry A lease should be registered on the domestic Aircraft Register when the duration of the lease is more than 30 days. The Civil Aviation Code is silent on the consequences of failing to do so. There does not appear to be any requirement for con - sent from any government entity. For the registration of the lease, the applicant must submit the lease and an application request contain - ing the following information to the ANAC: • the name(s) and address(es) of the lessee(s); • the date of the agreement and validity period; and
• information on the engine/aircraft, ie, trade mark, type, series, serial number, home registration and aerodrome of the leased aircraft. In addition, any change to the type or design of an aircraft must be notified to the ANAC within three months. 2.3.5 Requirements for a Lease to Be Valid and Registrable The official language in the Republic of Congo is French. Therefore, it would be advisable for a lease to be in the official language or to have it translated into French by a Congolese sworn translator. 2.3.6 Taxes/Duties Payable for Registering a Lease The registration of the lease agreement at the tax authority could be subject to a registration fee of 3% to 10% of the total value of the rent during the lease. A stamp duty of XAF1,000 (approximately USD1.78) per page of the lease agreement could also be payable. 2.3.7 Registration of Aircraft in Alternative Countries The Civil Aviation Code refers to the CEMAC mem - ber states. The Republic of Congo is a member state of CEMAC. As such, it seems that the aircraft could potentially be registered in another member country of the CEMAC region. 2.3.8 Requirements for Documents Concerning Registration The official language in the Republic of Congo is French. Therefore, it would be advisable that a lease be in the official language or translated into French by a Congolese sworn translator. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor Assuming that the lessor is located/incorporated/ domiciled in the Republic of Congo, it may be sub - ject to the payment of income tax for any profits from businesses operated in the Republic of Congo.
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