Non-EEA resident Directors need a bond to set up a company in Ireland
Company formation for non-EEA resident Directors requires a bond in place. Non-resident Director bond costs €2199+VAT and lasts for 2 years. You can include a bond as part of your Company Formation service. We will make the application to the financial institution (Willis Towers Watson) and Companies Registration Office (CRO) on your behalf.
What is a Section 137 bond?
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.
If you think you fall into this category, get in touch with our Client Services Team. We are always happy to discuss the services required for your new company in Ireland.
Non-EEA resident Director meaning
A non-resident Director refers to a Director that is not living in any of the EEA-member states.
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.
It’s important to note that Switzerland is not and an EEA member state. Once the UK leaves the EU, they will no longer be a member of the EEA. Therefore, companies with only UK Directors will need to have a bond in place to be compliant with company law in Ireland.
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. This means the Director lives outside an EEA-member state.
You are obliged to have an EEA resident Director or a bond in place for as long as your company is registered. For example, if your Irish company was set up with an EEA resident Director but now that Director wants to leave the company, you are legally required to get a non-EEA bond. The bond will start on the same date the EEA-resident Director left the company.
If you’re currently living in an EEA country and on a Visa, you can take a look at our guide on how non-EEA resident Directors set up Irish Limited Companies.
Do you have any questions about the company formation process for non-EEA resident Directors? Talk to our Client Services Team about the services you require to get set up quickly and easily.
What you need to know about a non-EEA resident bond
Bonds need to renewed every two years
You need to renew a bond every two years unless you have appointed an EEA resident Director. Alternatively, you can apply for exemption from the requirement of having an EEA-resident Director. This applies to companies that have a real and continuour significant economic link with Ireland.
This exemption can be applied for after the company has been set up. This means company formation in Ireland for non-residents needs to be done before applying for this exemption.
Bonds hold the value of €25,000
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).
Bonds are a necessary step for non-EEA resident Directors
The non-EEA resident Director bond costs €2199 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.
Bonds need to be in place before company incorporation
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?
Exemption for companies with no EEA resident Directors
After 2 years of economic activity in the State, you can apply to the Companies Registration Office for an exemption from the requirement to have at least one EEA resident director. A form 67 must be completed and it is only applicable after incorporation, so you will need to set up a company before you can avail of this.
The form b69 needs to be accompanied by a statement from the Revenue Commissioners confirming the company has reasonable grounds to believe that the company has a “real and continuous link with one or more economic activities that are in carried on in the State”. A company will usually apply for the exemption after two year in business because they can collect sufficient evidence during the first year. If successful, the company will be exempt from the requirement to have at least one EEA resident director.
What is a “real and continuous link”?
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. This letter is then submitted with the form B67 to the CRO.
For example, employing a lot of people 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.
Company formation Ireland for non-EEA 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.