Section 137 Bond for non resident directors. – Companies registered in Ireland are required to have at least one director resident in the European Union. If you wish to set up an Irish company and you do not have a director resident in the EEA (European Economic Area), it is possible to be exempted from the requirement of a resident director by obtaining a Section 137 Bond.
A section 137 Bond is effectively an insurance policy which will underwrite any potential financial penalties, for example were the company to be fined for late filing of documents.
Companies Registration Office – www.cro.ie
Section 137 – Bond where company has no EEA-resident director
The requirement to have at least one EEA resident director from a member State does not apply to any company which for the time being holds a bond, in the prescribed form, in force to the value of €25,000 and which provides that in the event of a failure by the company to pay the whole or part of a fine imposed on the company in respect of an offence under the Companies Act 2014 or under the Taxes Consolidation Act 1997, there shall become payable under the bond a sum of money for the purpose of same being applied in discharge of the whole or part of the company’s liability in respect of any such fine or penalty.
The bond must have a minimum period of validity of two years, commencing no earlier than the occurrence of the event giving rise to the requirement for the bond. The surety under the bond must be a bank, building society, insurance company or credit institution.
Alternative to bond – form b67
If, following incorporation, a company applies for and is granted a certificate from the registrar of companies that the company has a real and continuous link with one or more economic activities that are in carried on in the State, that company will be exempted from the requirement to have at least one EEA resident director from the date of the certificate, as long as the certificate remains in force.
Obtaining a Section 137 Bond
We work closely with insurers, and can assist you with obtaining a Section 137 Bond. For more information please contact us.