Companies with UK resident directors 9 July 2021

In our December newsletter we published an article  on our website to notify clients that  since Brexit happened on 01 January 2021 companies must have an EEA resident director in the company. As the UK is no longer a member of the European Union then UK resident Directors are not acceptable.

CRO are now rejecting filings where the companies do not have in place an EEA resident Director.

There are 3 ways around this

Where an Irish company currently has only UK resident Directors, the company will have three choices before the end of 2020:

1. Appoint an EEA-resident Director; or
2. A Section 137 Bond covers the company up to a sum of €25,000 and it would only be called upon if the company failed to pay certain fines/penalties issued by the Irish Revenue Commissioners and Companies Registration Office.

In essence the Bond acts like an insurance policy to cover the government for unpaid taxes or fines if the company leaves the jurisdiction.

The bond usually costs between €1,500 and €2,000 and lasts for a 2-year period. After this time either you must renew the bond for a further 2 years, put an EEA resident director in place, or prove that the company has a Real & Continuous Link in Ireland.

3. The company may apply to the Irish Revenue Commissioners for a ‘real and continuous link’ certificate, on the basis that the company’s affairs are managed by one or more persons from a place of business established in the State  Please see seperate article on our website for further information

If you feel this might affect your company please contact us to discuss as soon as possible.