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.
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.
Profincom 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 bond, spanning two years, comes at a fee of €2700 (VAT included). Please remember that once issued, the bond amount is non-refundable.
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.
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.