Starting a Company in Ireland For Non-Residents
There are a few things you need to know if you are a non-resident director who wants to start a company in Ireland. You need to take out a Section 137 Non-Resident Directors Bond, as stated in section 137 of the Companies Act 2014, and ensure that you fill out any relevant documentation. This article will explain why you need to take out a bond, what the bond entails, whether you qualify for receiving the bond, and what to do after you receive your bond.
Why Do I Need to Take Out a Bond?
Normally, European Economic Area (EEA) residents and any company that wants to create a company in Ireland must have at least one resident director. Non-EEA Resident Directors need to be residents of Ireland to start a business. However, the Section 137 Non-Resident Directors Bond exempts that requirement.
What Does the Bond Entail?
The Non-EEA Resident Director Bond gives your company €25,000 to cover fines from offenses to the Companies Act 2014—such as not filing Annual Returns—to pay the fine for not giving the Revenue Commissioners information that is required on the CRO 11F Form, to pay any penalty your company has received under the S1071 or S1073 of the Taxes Consolidation Act of 1997, and to cover expenses that your company incurs from recovering any of these fines or penalties.
How Long Does the Bond Last?
The bond must be valid for a minimum of two years and it cannot replace or act as the director of your company. It also must be renewed every two years if your company does not appoint a resident director. The bond is also not refundable, once bought. CRO states that, as a statutory requirement, you must get the bond before you incorporate your company in Ireland and attach it to the Form A1. The bond’s effective date must not exceed four working days before the date of your company’s incorporation.
What Agency/Company Supplies the Bond?
Various Irish Agencies, banks, credit institutions, building societies, and insurance companiescan provide the bond to you for a price, as long as they are included in Schedule 2 of the Companies (Amendment)(No.2) Act 1999 Bonding Order 2000.
For instance, Company Bureau sells the bond for €1957.50, while Irish Formations sells it for €1,860. Both bonds are viable for up to two years.
How Do I Know I Am Qualified to Get the Bond?
You are eligible for the Section 137 Non-Resident Directors Bond if your company complies under the Companies Act 2014 and if you have a Company Secretary and a minimum of two directors in your company.
What Happens After I Receive the Bond?
Once you receive the bond, you may continue to set up your company as if you were an EEA Resident and fill out the necessary forms, apply for Corporation Tax, register your company’s name, and register an address in Ireland.