Non-Resident Directors Requirement for Bond

After the 1st January 2021, your company will need to either appoint an EEA resident director or put in place the Section 137 Revenue Bond in order to comply with the Companies Act 2014. 

Section 137 of The Companies Act 2014 (section 43 under the old Act) states that if an Irish Registered Company does not have at least one company director who is resident in the European Economic Area (EEA), the company should purchase a non-EEA resident director Bond.

It is important to note that this requirement pertains to residency and not citizenship. A company director who holds an EEA passport but resides outside of the EEA would also require a bond.

When a company purchases a Section 137 Non-Resident Directors Bond or ‘Revenue Bond’ the company will be exempted from the requirement to have a Director who is resident in the EEA (European Union plus Iceland, Norway, and Liechtenstein).

A Revenue Bond will insure the company for a sum of €25,000.

The Non-Resident Bond covers a period of 2 years and must be put in place at the incorporation stage or upon the removal of the EEA resident director of the company. The Bond acts like an insurance policy to cover the government for unpaid taxes or fines if the company leaves the jurisdiction.

Having the Bond in effect does not replace or act as a Company Director – It merely allows the company to operate without an EEA resident director in place. Following the two-year period of the bond, the company is required to either renew the bond for a further two years, put an EEA resident director in place, or create a real and continuous link in the state. This link exemption can be applied for with the Revenue Commissioners when a company displays significant employment and a strong physical presence in Ireland.

We can arrange a Section 137 Revenue Bond for your company. The total fee payable for the Non-Resident Directors bond is €1700 and covers a period of two years. Please note once the Bond is issued it is non-refundable.