Non EEA Resident Director Bond

What is meant by a Non-EEA Resident Director Bond?

In Ireland, it is a legal requirement for all registered companies to have at least one director who is a resident in one of the European Economic Area (EEA) member states. In situations where a company’s directors are all residents outside the EEA, the company must have a non-resident insurance bond in place as per the Companies Act, 2014. This bond must be made in the prescribed form and has a value of €25,000. Here are some important points to keep in mind regarding the non-EEA resident director bond:

The purpose of the bond is to ensure that the company complies with its statutory responsibilities, such as filing necessary returns with the CRO and the Revenue. It also provides protection to the company in the event of fines imposed for non-compliance with the Companies Act or Taxes Consolidation Act.
It is crucial to note that residency is more important than citizenship. This means that if a director is a national of an EEA member country but is not a resident of any of those countries, the company will still require a non-EEA resident director bond.
Having a bond does not exempt a company from having a director. It only allows the company to operate without having a resident director.
The bond is effective for a period of two years, after which it must be renewed.

Who Should Secure a Bond for Non-EEA Resident Directors?

If you’re running an Irish company and don’t have a director who lives in one of the European Economic Area (EEA) countries, you need to get a bond to cover it. When you’re incorporating the company, you have to include the bond application if you don’t already have an EEA director.

And if you do have an EEA director but they leave, you’ll either need to find another EEA resident director or get a bond to cover the position. The idea behind all this is to make sure that the company is always covered by someone who’s subject to EEA regulations.

Exemption from having a Non-Resident Insurance Bond

If a company has a proven track record of conducting business in Ireland and can demonstrate a genuine and ongoing connection to one or more economic activities in the country, it may be eligible to apply for a certificate under section 140. This certificate would exempt the company from the requirement to have at least one director who is a resident of an EEA member state.

How can Abbey Blue Formations help?

It’s important to keep in mind that not having at least one EEA-resident director can result in some serious consequences. When an Irish registered company fails to meet this requirement, it’s considered a criminal offence and the company, along with every officer involved, may be prosecuted. That’s why it’s crucial to have this requirement handled professionally, and that’s where our team of experts can help.

We understand that navigating the legal requirements for company registration can be overwhelming, which is why we’re here to make the process as smooth as possible. Our team is composed of experienced professionals who can help guide you through every step of the process, including ensuring that you meet the requirements for a non-EEA resident director bond, if necessary.

If you have any questions or concerns about the requirement for non-EEA resident directors or any other aspect of company registration, please don’t hesitate to get in touch with us. Our team is always happy to help, and we’ll do our best to answer your questions and address your concerns in a timely and friendly manner.