Section 137 Bond Price Reduction
In an economic environment of inflation we want to announce some good news for companies without a European Economic Area Director. We are announcing a section 137 bond price reduction. The cost of putting a Section 137 bond in place will reduce to €1850.00 from 16th September 2022. This is a result of insurance cost reductions which we will pass on to our clients.
What is a Section 137 Bond?
Under section 137 of the companies act 2014 it states that a company can incept a 2 year insurance bond if there is no Director residing in the European Economic Area. Irish companies are legally required either to have an EEA Director or to put a Section 137 bond in place. The bond expires after 2 years of it being put in place. The EEA is made up of the following countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Iceland, Liechtenstein, and Norway.
If a company is involuntarily struck off the register to to a breach of the Tax Consolidation Act or the Companies Act, the Irish Government will apply for the bond to be paid to the government through the company. When a company is struck off the register the Government take ownership of it.
Brexit and EEA Membership of the United Kingdom
Since 01st January 2021 the United Kingdom relinquished its membership of the European Economic Area. Since that date, any company with only UK Directors will need to secure a Bond for their company, even if they incorporated prior to that date.
If you have any questions or there is doubt on whether you require a Section 137 bond or not, please contact us and we can advise on this area for you.