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Non-EEA Resident Directors Starting A Company in Ireland

  • Streamlined Incorporation: Ireland’s straightforward incorporation process allows non-EEA resident directors to set up their companies quickly, even with additional requirements like the non-EEA resident director bond.
  • Flexible Corporate Structures: Ireland offers flexible structures like private limited companies, which provide limited liability. Non-EEA directors should note the Irish resident director requirement, often met through options such as the non-EEA director bond.
  • Resident Director Solutions: Irish law requires an EEA resident director, but non-EEA residents can comply via a non-EEA resident director bond or nominee director services without relocating.
  • Business-Friendly Environment: Ireland’s competitive tax rate, extensive tax treaties, and access to the European Single Market make it ideal for non-EEA resident directors seeking international growth.
  • Comprehensive Support Services: Ireland provides legal, accounting, and virtual office support for non-EEA residents, making it easy to meet regulatory requirements, including the non-EEA director bond.
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Non-EEA Resident Directors Starting A Company in Ireland

Non-EEA Director Bond Service Fee

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Fee For Our Non-EEA Director Bond Service is €2000 + VAT

If you’re interested in learning more about non-EEA resident director bonds, visit our dedicated page on the Section 137 non-EEA resident director bond. It covers everything you need to know to comply with Irish resident director requirements.

Starting a business in Ireland offers numerous benefits, such as a vibrant economy and strategic location within the EU. Here’s a step-by-step guide for non-EEA resident directors to navigate the Irish company formation process and meet resident director requirements

Benefits of Setting Up in Ireland

reland’s favourable business environment, skilled workforce, and supportive regulatory framework make it an ideal location for company formation. Whether you’re a non-EEA resident or local entrepreneur, our expert team can provide personalized assistance, guiding you through each step of the company registration in Ireland process.

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Why Choose Ireland for Company Formation?

Ireland’s favorable business environment, skilled workforce, and supportive regulatory framework make it a top choice for company formation. Here’s an overview of key requirements for non-EEA resident directors starting a business in Ireland.

  • Access to the EU Market: Ireland provides direct access to the EU’s single market, allowing businesses—including those led by non-EEA resident directors with an EEA director bond—to trade freely across member states.
  • Favourable Tax Regime: Ireland’s 12.5% corporate tax rate attracts businesses. Both EEA and non-EEA directors can meet Irish resident director requirements with the non-EEA director bond if needed.
  • Strong Support for Startups: Ireland offers grants and incentives for new businesses, benefiting non-EEA directors in Ireland who meet residency requirements.
  • table Political and Economic Environment: Ireland’s stable framework supports business growth, enabling non-EEA resident directors to comply through the Irish resident director bond..

Understanding the Irish Resident Director Requirement

Understanding the Requirements for Non-EEA Directors

Resident Director Requirement

Irish company law mandates that every company must have at least one EEA resident director. For non-EEA resident directors in Ireland, there are several ways to meet this requirement:

  1. Appointing an EEA Resident Director: You can appoint an additional director who is an EEA resident to satisfy the legal requirement.
  2. Obtaining a Non-EEA Resident Director Bond: If appointing an EEA-resident director isn’t feasible, a non-EEA director bond (known as the Section 137 bond) is required. This bond ensures compliance with Irish company law by covering potential penalties.
  3. Does an Irish Company Need a Resident Director? Yes, an EEA-resident director is typically required to meet Irish resident director requirements. The non-EEA resident director bond Ireland option allows non-EEA directors to fulfill this without relocating.

Obtaining a Section 137 Bond

For non-EEA residents who cannot appoint an EEA-resident director, a non-EEA director bond is necessary. Here’s how it works:

  • Select a Bond Provider: Choose an authorized provider to issue the non-EEA resident director bond.
  • Provide Required Information and Pay the Premium: The bond typically costs around €2,000 for two years.
  • Submit to the CRO: The bond certificate must be submitted to the Companies Registration Office to satisfy the Irish resident director requirement.

Ongoing Compliance for Non-EEA Resident Directors

Non-EEA resident directors must also fulfill these ongoing obligations:

  • Annual Returns: Submit annual returns to the CRO, ensuring non-EEA resident directors and EEA resident directors meet filing requirements, including financial statements and company details.
  • Company Records: Maintain accurate records, including meetings, resolutions, and statutory registers, in line with Irish resident director requirements.
  • Tax Filings: File annual tax returns and promptly pay any due taxes, a requirement for both EEA and non-EEA directors in Ireland.
  • Employment Compliance: Adhere to Irish employment laws, covering payroll taxes and social insurance if employing staff, ensuring non-EEA resident directors meet compliance standards.

Tips for Non-EEA Resident Directors

Engage local experts to navigate Irish legal and compliance requirements effectively:

  • Seek Local Expertise: Work with local advisors, accountants, or legal experts to help meet Irish resident director requirements and navigate Irish business regulations, including non-EEA resident director bonds.
  • Stay Informed: Regularly update yourself on Irish company law, tax regulations, and non-EEA director bond compliance.
  • Plan for Visas and Work Permits: If you intend to reside or work in Ireland, ensure you obtain the necessary visas or permits.
  • Utilize Technology: Use online tools and resources to effectively manage your company from abroad, especially valuable for non-EEA resident directors.

Specific Requirements for Non-EEA Resident Directors in Ireland

Irish company law requires that at least one director be a resident in an EEA member state, ensuring local accountability to Irish authorities. For non-EEA resident directors establishing a business in Ireland, compliance can be achieved by appointing an EEA resident director or securing a non-EEA resident director bond, also known as a Section 137 bond.

Key Compliance Options for Non-EEA Directors

1

Appointing an EEA-Resident Director

To meet the Irish resident director requirement, the simplest approach is appointing a director who resides in an EEA country. This EEA resident director serves as the local point of contact and fulfills legal obligations. The appointed director should fully understand their responsibilities and the legal implications of their role.

2

Obtaining a Section 137 Bond

When appointing an EEA resident director isn’t possible, non-EEA resident directors must secure a Section 137 bond. This bond acts as an insurance policy to ensure compliance with Irish company law.

  • Bond Details: The bond, costing around €2,000 for two years, covers fines or penalties up to €25,000 for non-compliance, including missed annual returns and statutory obligations.
  • Bond Provider: The bond must be obtained from an authorized insurance company or financial institution in Ireland.
  • Filing Requirements: Submit the bond certificate to the Companies Registration Office (CRO) with the company’s incorporation documents.
3

Applying for a Revenue Commissioner’s Certificate

In some cases, companies may apply for an exemption from the EEA-resident director requirement by obtaining a certificate from the Irish Revenue Commissioners.

  • Eligibility: This option is generally available to companies that can demonstrate they have substantial ties to Ireland and are tax compliant.
  • Application Process: The application involves providing evidence of the company’s activities and tax compliance in Ireland. This is a less commonly used option due to the stringent requirements and the need for a strong business presence in Ireland.

Practical Steps for Compliance

  • Process
  • Office
  • Documents
  • Register

Company Formation Process

Secure a Registered Office

Establish a registered office in Ireland where official correspondence will be sent. This address must be a physical location within Ireland and may differ from the business’s operational address.

Submit Incorporation Documents

File the incorporation documents with the CRO. Pay the registration fee and submit the Section 137 bond certificate if applicable. Once approved, you will receive a Certificate of Incorporation, officially establishing your company.

Register for Tax and Open a Bank Account

Ongoing Compliance Requirements

Additional Considerations for Non-EEA Directors

Starting a company in Ireland as a non-EEA resident director involves meeting specific legal requirements to comply with local laws. By appointing an EEA-resident director, obtaining a Section 137 bond, or applying for a Revenue Commissioner’s certificate, you can ensure compliance and establish a successful business presence in Ireland. With careful planning and the right professional guidance, you can navigate these requirements and benefit from Ireland’s favourable business environment.

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Benefits, Ongoing Compliance and Challenges and Considerations of Establishing a Company in Ireland for Non-EEA Residents

Benefits of Establishing a Company in Ireland for Non-EEA Residents

  • Access
  • Environment
  • Framework

Access to the European Union Market

Unrestricted Trade and Movement

Ireland, as a member of the European Union (EU), provides companies with direct access to the EU’s single market. This offers significant advantages for businesses looking to expand their reach across Europe.

Gateway to Europe

Ireland serves as a strategic gateway to the European market for businesses outside the EEA.

Favourable Tax Environment

Competitive Corporate Tax Rate

Ireland’s corporate tax rate is one of the most competitive in the world, attracting a wide range of businesses.

Tax Incentives and Reliefs

Ireland offers various tax incentives and reliefs that benefit businesses.

Strong Legal and Regulatory Framework

Robust Legal System

Ireland has a well-developed and transparent legal system that protects the rights of businesses and investors.

Ease of Doing Business

Ireland ranks highly in global ease of doing business indices, making it an attractive destination for setting up a company.

  • Workforce
  • Support
  • Compliance

Skilled Workforce and Talent Pool

Highly Educated Workforce

Ireland boasts a highly skilled and educated workforce, particularly in sectors such as technology, pharmaceuticals, and finance.

Access to Talent

Ireland’s favorable immigration policies make it easier to attract and retain international talent.

Business-Friendly Policies and Support

Government Support Programs

Ireland offers a range of support programs and incentives for businesses.

Pro-Business Environment

Ireland’s government is committed to maintaining a pro-business environment through favorable policies and reforms.

Favorable Corporate Governance and Compliance

Simplified Corporate Governance

Ireland’s corporate governance requirements are straightforward, making compliance manageable for businesses.

Compliance and Reporting Ease

Ireland’s regulatory framework for corporate compliance is designed to be user-friendly and supportive of business growth.

  • Opportunities
  • Connectivity
  • Conditions

Access to Financial Markets and Investment Opportunities

Thriving Financial Sector

Ireland is a major hub for international finance, offering access to a wide range of financial services.

Investment Incentives

Ireland offers various incentives to attract foreign direct investment.

Strong Infrastructure and Connectivity

Advanced Infrastructure

Ireland boasts a robust infrastructure that supports business operations and growth.

Strategic Location

Ireland’s location provides strategic advantages for international businesses.

Quality of Life and Living Conditions

High Quality of Life

Ireland offers a high standard of living, making it an attractive location for both business and residence.

Safe and Welcoming Environment

Ireland is known for its safety, friendliness, and welcoming attitude towards foreign nationals.

Establishing a company in Ireland as a non-EEA resident offers numerous benefits, from accessing the European market to leveraging a favorable tax regime and a supportive business environment. Ireland’s skilled workforce, strategic location, and robust legal framework make it an ideal destination for business growth and international expansion. By taking advantage of these benefits, non-EEA residents can successfully establish and grow their businesses in Ireland.

Ongoing Compliance Requirements for Companies in Ireland

  • Returns
  • Corporation
  • VAT
  • PAYE
  • Records

Annual Returns and Financial Statements

Corporation Tax Returns

Value-Added Tax (VAT)

PAYE/PRSI

Company Records Maintenance

  • Law
  • Compliance
  • Regulations
  • Beneficial
  • AML

Compliance with Employment Law

Data Protection Compliance

Sector-Specific Regulations

Beneficial Ownership Disclosure – Register of Beneficial Owners

Anti-Money Laundering (AML) Compliance

  • Audits
  • Compliance
  • Protection
  • Obligations
  • Governance

Compliance Audits

Environmental Compliance

Intellectual Property Protection

Legal and Contractual Obligations

Corporate Governance

Ongoing compliance is essential for maintaining your company’s legal standing and reputation in Ireland. By understanding and adhering to these requirements, you can avoid penalties, ensure smooth operations, and build a solid foundation for long-term success. Regularly review your compliance practices and seek professional advice to stay updated with any changes in regulations.

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Challenges and Considerations for Non-EEA Residents Starting a Company in Ireland

  • Requirement
  • Visa
  • Understanding
  • Regulatory

Resident Director Requirement

Challenge: Compliance with Local Laws for Non-EEA Resident Directors

Irish law mandates that every company must have at least one director who is a resident of an EEA member state. For non-EEA resident directors, this poses a significant compliance challenge.

Key Considerations:

Visa and Work Permit Requirements

Challenge: Securing the Right to Work and Reside in Ireland as a Non-EEA Resident Director

For non-EEA resident directors, obtaining the appropriate visa or work permit is essential to legally reside and work in Ireland.

Key Considerations:

Understanding Local Taxation and Compliance

Challenge: Navigating the Irish Tax System as a Non-EEA Resident Director

For non-EEA resident directors operating in Ireland, understanding local tax obligations is essential to ensure compliance with Irish tax laws.

Key Considerations:

Legal and Regulatory Compliance

Challenge: Adhering to Irish Laws and Regulations as a Non-EEA Resident Director

For non-EEA resident directors establishing a business in Ireland, understanding and adhering to Irish legal and regulatory requirements is crucial.

Key Considerations:

  • Presence
  • Differences
  • Resources
  • Issues

Establishing a Local Presence

Challenge: Setting Up Operations in Ireland as a Non-EEA Resident Director

For non-EEA resident directors, establishing a local presence in Ireland comes with logistical challenges, especially when setting up remotely.

Key Considerations:

Navigating Cultural and Market Differences

Challenge: Understanding the Local Business Environment as a Non-EEA Resident Director

Non-EEA resident directors may encounter challenges in adapting to Irish business culture and market dynamics.

Key Considerations:

Access to Funding and Financial Resources

Challenge: Securing Financial Support as a Non-EEA Resident Director

Accessing funding in Ireland can be challenging for non-EEA resident directors, especially when establishing a new business.

Key Considerations:

Employment and Staffing Issues

Challenge: Recruiting and Managing Staff as a Non-EEA Resident Director

For non-EEA resident directors operating in Ireland, hiring employees requires compliance with Irish employment laws and effective management of staffing needs.

Key Considerations:

  • Risks
  • Protection
  • Compliance
  • Competition

Managing Currency and Exchange Rate Risks

Challenge: Handling Multiple Currencies as a Non-EEA Resident Director

For non-EEA resident directors operating in Ireland, managing transactions in different currencies can present exchange rate risks, which may impact financial stability.

Key Considerations:

Intellectual Property Protection

Challenge: Securing Intellectual Property Rights as a Non-EEA Resident Director

For non-EEA resident directors starting a business in Ireland, protecting intellectual property (IP) is essential to safeguard innovations and brand value.

Key Considerations:

Addressing Environmental and Regulatory Compliance

Challenge: Meeting Environmental Standards as a Non-EEA Resident Director

Ensuring compliance with environmental regulations is essential for businesses in Ireland, especially for non-EEA resident directors managing company operations.

Key Considerations:

Preparing for Market Competition

Challenge: Competing in a New Market as a Non-EEA Resident Director

Entering the Irish market as a non-EEA resident director comes with unique challenges. Understanding and addressing the competition is essential for success, especially when meeting Irish resident director requirements.

Key Considerations:

Starting a company in Ireland as a non-EEA resident involves navigating various challenges and considerations. By understanding the requirements and preparing adequately, you can overcome these obstacles and establish a successful business. Seek professional advice, conduct thorough research, and leverage local resources to ensure compliance and capitalize on the opportunities Ireland offers.

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Steps to Start a Company in Ireland

The process of registering an Irish Limited Company requires several important steps. Careful adherence to each step will ensure a smooth setup and prevent common issues.

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Frequently Asked Questions

What are the primary requirements for non-EEA resident directors to start a company in Ireland?

Non-EEA resident directors must meet several key requirements:

  • Section 137 Bond: Non-EEA residents must secure a non-EEA resident director bond covering fines and penalties up to €25,000 for non-compliance with the Companies Act 2014 and certain tax obligations to the Revenue Commissioners.
  • Registered Office: Establish a registered office address in Ireland.
  • Company Secretary: Appoint a company secretary, either an individual or a corporate entity.
What is a Section 137 Bond and why is it required?

A Section 137 Bond is an insurance policy required for companies with non-EEA resident directors. It provides coverage for fines or penalties up to €25,000 for breaches of the Companies Act 2014 and certain taxes due to the Revenue Commissioners. This non-EEA resident director bond in Ireland is necessary unless the company appoints at least one EEA-resident director.

Can a non-EEA resident be the sole director of an Irish company?

Yes, a non-EEA resident can be the sole director of an Irish company if the company secures a Section 137 Bond or appoints a second EEA resident director.

What is the process for registering a company in Ireland as a non-EEA resident director?

The registration process includes:

  1. Choose a Company Name: Ensure it’s unique and meets Irish company naming regulations.
  2. Prepare Company Documentation: Draft the Memorandum and Articles of Association.
  3. Register with the Companies Registration Office (CRO): Submit Form A1 and the required documentation.
  4. Secure a Section 137 Bond: If there is no EEA resident director, the company must obtain this non-EEA director bond.
  5. Tax Registration: Register for Corporation Tax, VAT, and PAYE/PRSI with the Revenue Commissioners.
What are the tax obligations for an Irish company with non-EEA resident directors?

An Irish company with non-EEA resident directors must fulfill the following tax obligations:

  • Corporation Tax: File annual returns and pay any due tax.
  • VAT: File bi-monthly returns if registered for VAT.
  • PAYE/PRSI: Submit monthly payroll taxes for any employees.
What are the compliance requirements for an Irish company with non-EEA resident directors?

Compliance requirements include:

  • Annual Returns: File annual returns with the CRO.
  • Financial Statements: Prepare and submit annual financial statements.
  • Corporate Governance: Maintain accurate accounting records and hold Annual General Meetings (AGMs).
  • Employment Laws: Adhere to Irish employment regulations, including contracts and minimum wage requirements.
Can non-EEA residents open a bank account for their Irish company?

Yes, non-EEA residents can open a business bank account in Ireland. They will need the company’s Certificate of Incorporation, Memorandum and Articles of Association, and proof of identity and address for all directors and beneficial owners.

What are the benefits of starting a company in Ireland for non-EEA residents?

There are several advantages for non-EEA resident directors establishing a business in Ireland:

  • Access to the EU Market: Ireland’s EU membership provides access to the single market.
  • Favorable Tax Regime: Ireland offers a competitive corporate tax rate of 12.5%.
  • Business-Friendly Environment: Ireland has pro-business policies and a supportive regulatory framework.
  • Skilled Workforce: The country offers access to a young, educated, and skilled labor pool.
  • Strong Legal System: Ireland’s robust legal framework ensures stability and investor protection.
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  • Call to Action

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Dublin Office

Office 80, Cherry Orchard Industrial Estate Ballyfermot Road, Co. Dublin D10NX96, Ireland.

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Non-EEA Resident Directors Starting a Company in Ireland

Non-EEA residents can establish companies in Ireland and serve as directors, benefiting from its favorable business environment and international connectivity.

Non-EEA Resident Directors Starting a Company in Ireland
business in ireland
  • In Ireland, a non-EEA resident can establish a business, provided they meet specific requirements under Irish law. According to the Companies Act, every company must have at least one EEA resident director. If a company’s sole director is a non-EEA resident, it must secure a Section 137 bond to comply with the Irish resident director requirement.
  • TAS Consulting assists with the process of obtaining a non-EEA resident director bond in such cases, making it feasible for non-EEA resident directors in Ireland to form and operate a business smoothly, provided all essential steps are followed.

What happened after Brexit? What rules apply to UK directors?

Following Brexit, the UK is no longer part of the EEA, which affects UK directors of Irish companies. If you’re a UK resident looking to establish an Irish Limited Company, you can still incorporate a company in Ireland. However, you’ll need to either obtain a non-EEA resident director bond (also known as a Section 137 bond) or appoint an EEA resident director alongside yourself.

For existing companies with only UK directors, it’s possible to apply for an exemption certificate from the Companies Registration Office (CRO). This application must include a letter from Revenue confirming that the company has a “real and continuous connection” with economic activities in Ireland.

UK directors

How to Set up an Irish Company with No EEA-Resident Director

To establish an Irish company without an EEA-resident director, follow these steps:

  • Company Structure: Ensure you have at least one director, a separate company secretary, an Irish registered address, and defined share capital.
  • Secure a Non-EEA Resident Director Bond: Obtain a non-EEA resident director bond (also known as a Section 137 bond) from a financial institution to meet compliance requirements.
  • Prepare Documentation: Complete Form A1 and the company constitution on CORE.ie or through a business formation agent.
  • Submit to the CRO: File the secured bond, Form A1, and company constitution with the Companies Registration Office (CRO) to complete the registration.

Do I Need a Bond if I Am an EEA Citizen but Not a Resident of the EEA?

Yes, you will need a non-EEA resident director bond if you are an EEA citizen but no longer reside in an EEA country. Residency rules are distinct from citizenship requirements. Here are two examples:

  • If you are an Irish citizen but have lived in the USA for ten years without returning to reside in Ireland, you would be classified as a non-resident. Despite holding Irish citizenship, you are not an EEA resident and would need to secure a Section 137 bond.
  • Similarly, if you are a Spanish citizen living in China for five years, you remain an EEA citizen but are not an EEA resident. In this situation, you would also need to procure a non-EEA resident director bond to comply with Irish company regulations.

The Non-Resident Package

To support non-resident directors, we offer a Non-Resident Package designed for those living outside Ireland. This package includes:

This Package includes:

  • Certificate of Incorporation
  • Company Constitution compliant with the Companies Act 2014
  • Free company name check
  • Fast company formation service
  • Digital documents delivered by email
  • CRO fee included
  • Corporation Tax registration

This comprehensive package simplifies the process of forming an Irish company for non-EEA resident directors or EEA citizens residing outside the EEA.

What will happen if there is no bond?

  • Businesses which don’t have an EEA resident manager are guilty of an offense.
  • The Registrar of Companies can strike off (close down) a business if it does not comply with the Companies Act. Thus, it’s very important to stay compliant.

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