Section 137 Non Resident Bonds and Brexit has become a hot topic now that the transition and deadline period has passed, the United Kingdom has left the European Single Market in December 2020. An agreement was reached between the UK Government and European
Commission to align Northern Ireland in a limited way on rules over goods with the European Single Market to maintain an open border on the island of Ireland. The deal reached at the last minute was a trade deal, and did not include membership of the European Economic Area EEA.
The CRO’s prepare for Brexit page outlines tips and tricks for preparing for Brexit, and we have had clarification on same regarding the requirement for the Bonds. Section 137 Non Resident Bonds and Brexit has been a busy topic for ourselves as a provider of bonds. Many companies who do not have a Director in the EEA, and only resident in the UK will be in a position to appoint a Director in the EEA, but maybe will not, and the Section 137 Bond is an alternative to this. The section detailing the requirement on the companies act 2014 is available here.
The bond is in force for 2 years for €25,000 where a company fails to pay a penalty in relation to:
Fines imposed on the company in relation to an offence under the Companies Act 2014 committed by the company, being an offence which is prosecutable by the Registrar of Companies and a fine imposed on the company in respect of an offence under section 1078 of the Taxes Consolidation Act 1997 and a penalty which it has been held liable to pay under section 1071 or 1073 of the Taxes Consolidation Act 1997.