Acquiring a Real and Continuous Link for a Company Formation in Ireland

When the Directors of a company live outside the European Economic Area, there is a requirement under section 137 of the companies act to put a Bond in place, or get a Real and Continuous Link for the company. So we are often asked by clients, about acquiring a Real and Continuous Link for a Company Formation in Ireland

The minimum term for a Non-Resident Directors bond is 2 years, and it is the single biggest cost associated with forming a company with no EEA Directors. A real and Continuous Link to one or more activities being carried out in the State as an alternative is the process where a company can show that they carry out business within the state, or have persons working for the company living in the State.

The first step in the process in applying is to apply to Revenue. The entire process comes under Section 140 of the companies act. An opinion must be sought from the Revenue Commissioners that a trading link exists. The intention to create trade in Ireland or a list of prospects for trade will not convince revenue of a link.

The Second step in the process which should be filed within 2 months of gaining an opinion from Revenue to avoid the requirement for a Section 137 Bond is to file a B67 form with the Companies Registrations office. The form is filed along with the opinion document from Revenue. If a company applies for and is granted a Real and Continuous Link, the company will not have to put a bond in place or have an EEA Director in place for as long as the certificate lasts. i.e. from the issue date to the expiry of the certificate. An application can have a favorable outcome if the company is managed by a person living in Ireland, or if it is determined that actual trade is being carried out in the state by the company.