By Andrew Lambe, 31st January 2020
We have important news for any Irish registered companies with only UK resident Directors in the wake of Brexit.
Brexit Transition Period
On 31st January 2020, the United Kingdom is exiting the European Union. However, there will be a transitionary period in place until 31st December 2020. During this period, the UK’s trading relationship with the EU will remain unchanged as the UK will stay within the single market and customs union. The UK will also continue to follow all EU regulations and any updated regulations.
The 11-month Brexit transition period will maintain current relations between the UK and EU regarding:
- Travel and passport requirements
- Freedom of movement for citizens – no visa requirements for workers
- UK-EU trade – no extra charges or checks will be introduced
Revenue Bond Requirement
This brings good news to Irish companies with only UK based directors because they can continue to operate as normal without a requirement for the Section 137 Revenue Bond for the time being. However, after the transitional period has lapsed, these companies will need to either appoint an EEA resident director or put in place the Section 137 Revenue Bond in order to comply with the Companies Act 2014. A third possibility is proving a ‘Real & Continuous Link‘ to the state, however, several Irish-based employees and Revenue approval is required.
In terms of Irish company owners dealing with the implications of Brexit in general – You can access Government support and advice at www.gov.ie/brexit so your business can be as prepared as possible.
For further information about the requirements of Irish companies or to secure a revenue bond, please don’t hesitate to contact us on +353 (0)1 6461625 or e-mail firstname.lastname@example.org.