Renew a Non-Resident Director Bond
Is your Section 137 bond out of date and do you need to renew a Non-Resident Director Bond? Keeping your company bond in place is key to your compliance if your Directors are non European Economic Area (EEA) Directors.
What is the Bond?
A section 137 bond is a security measure put in place to ensure that submission requirements to the revenue commissioners and the CRO are completed by companies whos directors do not reside in Ireland. It acts as an insurance policy to the value of £25,000 and covers the company in the midst of any liabilities or accountabilities that may occur. Note that, even if one of the Directors holds an EEA passport they will still need to avail of the bond because nationality does not equate to residency in this instance. The bond will allow you to operate your company while residing outside of Ireland or EEA jurisdiction. Although the bond needs to be to the value of £25,000, an established company formations entity can apply on your behalf for a standard fee.
What are the member Countries of the EEA?
The EEA (European Economic Area) is made up of 28 countries. These countries consist of:
-Austria – Estonia – Italy – Portugal
-Belgium – Finland – Latvia – Romania
-Bulgaria – France – Lithuania – Slovakia
-Croatia – Germany – Luxembourg – Slovenia
-Cyprus – Greece – Malta – Spain
-Czech republic – Hungary – Netherlands – Sweden
-Denmark – Ireland – Poland – (Iceland/ Norway/ Liechtenstein)
What are the alternatives to the bond?
One European Economic Area (EEA) resident Director negates the requirement for a Section 137 Bond. The bond must be acquired before you can begin to set up your company. Renewal must occur every two years unless the residency status of at least one one of your directors has changed since then. Meaning they are now residing in the European Economic Area.
How to I renew the Bond?
Renewing a section 137 bond is vital for every company who still does not have an EEA Director residing in the EEA. The bond lasts two years. It can be renewed by filling out the forms on our website. It is a simple and easy process to renew.
Why its important to renew a Bond?
It is imperative to have a bond in place if you are an Irish company owner who does not reside in Ireland. Again, a minimum of 1 director of the company needs to be residing in the EEA. If not, then the company needs to have a bond secured. Failure to comply with these laws may leave the company open to hard sanctions. These may include court orders, involuntary strike off and prosecution of company directors as well as the company itself.