By Andrew Lambe, 31st January 2020 (Updated 18th January 2021)
We have important news for any Irish registered companies with only UK resident Directors in the aftermath of Brexit.
Brexit Transition Period
The United Kingdom officially began its exit from the European Union on 31st January 2020; this started a transitionary period which concluded on 31st December 2020. During the transitionary period, the UK’s trading relationship with the EU remained unchanged and the UK was temporarily allowed to stay within the European single market and customs union while following all EU regulations. This 11-month Brexit transition period allowed for trade to continue as normal while a potential Brexit deal could be finalised.
A Brexit trade deal was reached at the last minute before the United Kingdom left the European Single Market and the European Economic Area (EEA) on 31st December 2020. Northern Ireland is to maintain an open border with the Republic of Ireland and will continue to be aligned with the European Single Market in a limited way.
Revenue Bond Requirement
This transition period allowed time for Irish companies with only UK based directors to operate as normal without a requirement for the Section 137 Revenue Bond. However, now that the transitional period has passed, 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.
For further information about the requirements of Irish companies or to secure a revenue bond, please don’t hesitate to contact us or call +353 (0)1 6461625.
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.