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:
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Potential fines due to non-compliance with the Companies Act 2014, like delays in Annual Returns or Audited Accounts submissions.
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Penalties for not providing requisite details to the Revenue Commissioners, primarily data necessary for the Form CRO 11F.
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Penalties the company is accountable for under S1071 or S1073 of the Taxes Consolidation Act 1997.
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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.