Non-EEA Resident Directors Need A Bond To Set Up A Company In Ireland
If you wish to form an Irish company and you do not have at least one Director resident in the EEA, you must take out a bond (Section 137 Bond ). Accountant Online can arrange this bond for you in conjunction with a third party financial institution which provides us with the surety. The bond insures the company against offences under the Companies Act 2014 and it exempts you from the usual requirement to have a director resident in the EEA.
Non-EEA Resident Director Meaning
A non-resident Director bond costs €1999 plus VAT and lasts for 2 years. You may purchase a bond as part of your Company Formation purchase here online at Accountant Online. We will make the application to the Companies Registration Office on your behalf and process these documents for you within one week.
Do I Need A Non-EEA Resident Bond?
You need a non-EEA resident Director bond if there is no Director in your company that is resident in the EU or EEA. If your Irish company has been set up with an EEA resident Director, but that Director now wants to leave the company – you are still obliged to get a non-EEA bond. The bond will have to start on the same date the EEA-resident Director left the company.
What You Need To Know About A Non-EEA Resident Bond
How Long Does The Bond Last?
The non-EEA resident Director bond lasts for 2 years and at this point, you will need to renew it. You'll have to renew the bond unless you have appointed an EEA-resident Director or if you have managed to establish a 'significant economic link' with Ireland in that time. After 2 years of economic activity in the State, you can apply to the Revenue for an exemption to this requirement of a bond. If Revenue is satisfied that there is a 'significant economic link’ then they will issue you a letter advising that you can avail of an exemption. An example may be that the company is employing a lot of people in Ireland.
What Does The Bond Cover?
The bond insures an amount of up to €25,000 in the event that your company fails to pay all or some of fines imposed by the Registrar of Companies (CRO) and fines and penalties related to the Taxes Consolidation Act 1997 (Revenue).
How Much Does A Bond Cost?
The non-EEA resident Director bond costs €1999 plus VAT and lasts for 2 years. You may purchase a bond as part of your Company Formation purchase here online at Accountant Online. We will make the application to the Companies Registration Office on your behalf and process these documents for you within one week.
How Long Does It Take To Apply For A Bond?
When you incorporate your company, you need to have the bond with the incorporation application. This means we need to apply for the bond first, and once we receive the Bond, we can continue with the incorporation. We can look after the formation process for you if you purchase our company formation services today.
When Can I Stop Renewing The Non-EEA Resident Bond?
There is an exemption from the requirement to have an EEA-resident Director. This applies to companies that have established a “real and continuous link with one or more economic activities that are in carried on in the State.” In other words, your company needs to provide evidence that there is economic activity happening in Ireland.
Revenue will evaluate your evidence to prove that you have a ‘real and continuous link” with Ireland and each company may provide different means of proof. We recommend that you get in touch with us to get more information on your specific circumstance.
The EEA consists of the 28 member states of the EU. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom, additionally Iceland, Liechtenstein and Norway.
Irish Company Formation For Non-Residents
Setting up a new company is an exciting time for you. Don’t let the thoughts of paperwork and corporate filings intimate you. Because here at Accountant Online, we can take care of all your legal obligations when it comes to setting up an Irish Limited Company. If you’re a non-resident Director thinking about setting up in Ireland – get in touch with us and we can support you set up your Startup.