Section 137 of The Companies Act 2014
Specifies that if an Irish Company does not have a director residing in the European Economic Area (EEA), it must procure a Bond. Crucially, the regulation emphasizes residency rather than citizenship. Even directors with EEA citizenship, if living outside the EEA, would still need a Bond.
Obtaining the Section 137 Bond, commonly referred to as a 'Revenue Bond', allows Irish-registered companies an exemption from the EEA resident director mandate. The EEA comprises the European Union plus Iceland, Norway, and Liechtenstein.
The Revenue Bond offers
an insurance of
€25,000
to the company, covering
Potential fines due to non-compliance with the Companies Act 2014, like delays in Annual Returns or Audited Accounts submissions.
Penalties for not providing requisite details to the Revenue Commissioners, primarily data necessary for the Form CRO 11F.
Penalties the company is accountable for under S1071 or S1073 of the Taxes Consolidation Act 1997.
Costs associated with retrieving the above penalties and fines.
The Bond for non-resident directors spans two years and is essential either at the company's inception or when an EEA resident director steps down. Essentially, the Bond serves as a safety net for the government against any unpaid dues if the company exits the region.
It's essential to understand that the Bond doesn't serve as a replacement for a Company Director. It simply facilitates the company's operations without an EEA-resident director. Post the two-year Bond term, companies must decide on its renewal for another two years, appoint an EEA resident director, or establish a consistent link in the state. This link exemption, based on considerable employment and a tangible presence in Ireland, can be sought from the Revenue Commissioners.
Irishcompany can streamline the process of obtaining a Section 137 Revenue Bond for your enterprise. We now accept scanned Bond application forms, making the process more efficient. The arrangement of the Bond,including insurance premium and administrative fees, costs €1600 if purchased as a part of the Incorporation Package or €2100 if purchased separately. Please note that the fee is non-refundable once Bond is issued.
For in-depth insights on the Revenue Bond or fulfilling the legal prerequisites for an Irish firm, reach out to us, and we'll send a proposal form promptly.
Feel free to get in touch with us for further details.
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Important Note
In specific scenarios, international entities initiating operations in Ireland might consider hiring an Irish Resident Director in a non-executive role. For a comprehensive discussion, please connect with us.