By Annette McCarthy, 5th October 2021
Many Irish companies with UK directors have still not taken action when it comes to Brexit and the need to secure a Revenue Bond. Since 1st January 2021, Irish companies with only UK-based directors are required to either appoint an EEA resident director or put in place a Section 137 Revenue Bond in order to comply with the Companies Act 2014.
Do I need a Brexit Bond?
Often referred to as a Brexit Bond, a company director bond is actually required for any Irish registered company that does not have at least one European Economic Area (EEA) resident director. Anyone who is involved in running an Irish registered company should be aware of the compliance obligations under the Companies Act 2014 and the need to have a Section 137 Non-EEA Resident Director Bond in place. Please note that the EEA director requirement is in relation to residency and not citizenship, therefore an Irish director who is a tax resident in the UK would not fulfil this obligation.
Securing a Brexit bond insures the company up to and including the sum of €25,000 for a period of two years. Additional alternatives are to appoint an EEA-resident director or obtaining the Revenue certificate of a real and continuous link to the state. Non-compliance can result in a fine and if a company is found in breach the Registrar has the power to strike that company off the register.
How can I obtain a Company Director Bond?
If your Irish company is in breach of the EEA director obligation, it can remedy the situation by ordering a bond from Company Bureau Formations Limited. Our bond process is clear and straightforward, the fastest way to proceed is to order a company director bond on our website. When a bond is ordered the Bond Application Form, Directors Letter and Companies Registration Office (CRO) Form(s) are sent via e-mail. Our correspondence will contain detailed and concise step by step procedures of how the application form is to be completed as well as what needs to be done with both the letter and CRO form(s). For best practice, we ask that the completed documentation is e-mailed to us prior to posting to ensure that everything has been completed correctly and to avoid any unnecessary delays.
As soon as the original documentation is received and we have completed the bond issuing procedures we will upload the CRO form(s) and couriered the issued bond to the CRO. If the client has requested a copy of the issued bond this is sent via e-mail at this stage.
Once the CRO registered submission e-mail is received we notify the client that the CRO has processed the form(s) and in effect have registered the bond. Shortly afterwards the bond details will appear on the online company information system(s).
The bond will last for a duration of two years whereby it will expire after this period and will need to be either renewed or an appointment of an EEA resident director would have to have occurred.
If you would like to order our Non-EEA Resident Directors bond service, please do so online. If you have any queries, please do not hesitate to contact us or call +353 1 6461625. The experts at Company Bureau would be happy to assist you with your specific company needs.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.