Who Should Read This?
This guide is written for entrepreneurs, startup founders, and international business owners planning to register a company in Ireland without an EEA-resident director on their team. It is especially relevant for anyone who has just discovered mid-incorporation that Irish company law requires at least one director to be ordinarily resident in the EEA, and is now trying to figure out the fastest, most cost-effective way around it.
In this guide, you'll find:
- A plain-English explanation of what the Section 137 non-resident director bond is, what it covers, and what it does not.
- A clear breakdown of the cost involved and how long the bond lasts so there are no surprises after you commit.
- An honest comparison of the bond versus a nominee director and which option makes more sense depending on your situation.
- A practical post-incorporation checklist covering the steps non-resident founders must take once their Irish company is live and trading.
- The Section 137 bond is a legal requirement for Irish companies with no EEA-resident director.
- It is based on residency, not citizenship—where you live matters, not what passport you hold.
- UK residents no longer qualify as EEA-resident directors following Brexit.
- The bond covers €25,000 for a two-year period and is non-refundable once issued.
- At the end of two years, you must renew, appoint an EEA director, or establish a continuous link.
- A nominee director is often a more practical and bank-friendly alternative.
- TAS Consulting handles the full process—contact us before you incorporate to avoid delays.
Article Overview
EEA Residency Rules
Understand Section 137 statutory mandates, residency vs. citizenship distinctions, and the post-Brexit status of UK directors.
Bond Mechanics & Cost
Explore what the €25,000 Revenue surety bond covers, pricing details, and renewal obligations every two years.
Bond vs. Nominee Director
Compare financial surety bonds against Irish nominee director appointments and choose the best route for banking and control.
Non-Resident Director Bond Ireland
You've decided to register a company in Ireland. Smart move. Ireland offers one of Europe's most competitive business environments—a 12.5% corporate tax rate, full EU single market access, and a well-established legal framework that international founders trust.
Then you hit a wall.
"At least one director must be resident in the EEA."
If your entire founding team lives outside the European Economic Area, this single requirement can feel like the end of the road. It isn't. There are clear, fully legal solutions and the non-resident director bond Ireland is one of the most widely used.
This guide explains exactly what it is, how it works, what it costs, and whether it is the right option for your situation.
What Is the EEA Residency Requirement?
Under Section 137 of the Companies Act 2014, every Irish private limited company must have at least one director who is ordinarily resident in the European Economic Area (EEA). The EEA includes all 27 EU member states plus Iceland, Norway, and Liechtenstein.
Two things trip people up here:
- Residency not citizenship. This rule is about where you live, not what passport you hold. An Irish citizen living in New York does not satisfy the requirement. A German citizen living in Dublin does.
- Post-Brexit, the UK no longer qualifies. This is one of the most common compliance errors we see. UK residents were EEA-resident directors before January 2021. They are not anymore. If your only director lives in London, your company is currently non-compliant regardless of when it was incorporated.
What Is a Non-Resident Director Bond?
A non-resident director bond—formally called a Section 137 bond or Revenue bond—is a financial surety bond that allows an Irish company to legally operate without an EEA-resident director.
Think of it as a formal guarantee to the Irish state. It says: "We do not have a local director, but we are bonded for €25,000 against any unpaid fines, penalties, or tax liabilities that might arise from that."
It does not replace a director. It does not give you a director. It simply satisfies the legal requirement so your company can be incorporated and operated without one.
The bond covers a two-year period and must be in place either at incorporation or immediately when your last EEA-resident director steps down.
What Does the Bond Actually Cover?
The €25,000 bond is there to protect the Irish state—not your company—against the following:
- Fines imposed under the Companies Act 2014, such as failure to file annual returns on time
- Penalties for failing to provide required information to the Revenue Commissioners
- Tax penalties under the Taxes Consolidation Act 1997
- Any costs incurred by the state in recovering those fines or penalties
It is a backstop for the government, not a business insurance policy. Your company's own liabilities and risks are entirely separate.
What Happens When the Bond Expires?
The bond lasts two years. Before it expires, you have three options and you must act on one of them. Letting it lapse without taking action puts your company in breach of the Companies Act.
Renew the Bond
Renew the bond for a further two years. Straightforward, but not ideal as a permanent solution given the cost involved.
Appoint an EEA-Resident Director
If your business grows to the point where you have a team member, employee, or trusted contact living in the EEA, appointing them as director removes the bond requirement entirely.
Establish a "Real and Continuous Link" in Ireland
If your company has genuine, significant operations in Ireland—employees, a physical office, substantial Revenue activity—you can apply to the Revenue Commissioners for an exemption from the EEA director requirement. This is the most sustainable long-term route for companies that are genuinely trading in Ireland.
Who Needs a Non-Resident Director Bond?
You need a bond if your Irish company has no director who is ordinarily resident in the EEA at the time of incorporation or at any point during the company's life. This includes:
- Founders based in the USA, Canada, Australia, UAE, or any non-EEA country
- UK-based founders and directors post-Brexit
- Irish or EEA passport holders who are living and working outside the EEA
- Existing Irish companies whose only EEA-resident director has resigned or relocated
If any one of your directors lives in an EEA country, you do not need the bond—that person's residency satisfies the requirement on their own.
In practice, many non-resident founders use a nominee director rather than a bond, because Irish banks are more comfortable opening a corporate account when a named, Irish-resident director is on the CRO record. If opening a business bank account is a priority for you, a nominee director is almost always the better route.
TAS Consulting provides both services. We will advise you on which is more appropriate for your specific situation during your free consultation.
What Does the Non-Resident Director Bond Cost?
The standard market rate for a Section 137 non-resident director bond Ireland is approximately €1,957 including VAT (or offered via our specialized non-EEA director bond package), covering a two-year period.
Important: Once the bond is issued, the premium is non-refundable even if you subsequently appoint an EEA-resident director or qualify for a link exemption before the two years are up.
This makes it essential to think carefully about your long-term plan before committing to a bond. If you are likely to appoint a local director within six months, a nominee director arrangement may be more cost-effective and flexible.
Compliance Options Comparison
| Compliance Approach | EEA Director Required? | Section 137 Bond (€25k) | Bank / CRO Friendliness | Best Suited For |
|---|---|---|---|---|
| Section 137 Non-Resident Bond | No | Required (€25k Surety) | Moderate (Bank dependent) | Solo international founders preferring self-directed board |
| Nominee Director Service | Yes (Nominee) | Not Required | High (Local resident on record) | Founders prioritizing Irish corporate bank accounts & governance |
| EEA-Resident Co-Director | Yes | Not Required | High | Founders with EU/EEA co-founders or partners |
A Note for UK Founders Specifically
If you are based in the UK and incorporated an Irish company before Brexit, there is a good chance your company became non-compliant on 1 January 2021 without you realising it.
UK-resident directors who were previously counted as EEA-resident no longer qualify. If you have not taken action since Brexit—either by appointing an EEA-resident director, taking out a bond, or establishing a continuous link—your company may currently be in breach of Section 137.
This is a fixable problem, but it needs to be addressed. Contact TAS Consulting and we will assess your company's current compliance position and recommend the fastest route to resolution.
How TAS Consulting Can Help
At TAS Consulting, we handle the full non-resident director bond process on your behalf—from initial assessment and document preparation through to submission and ongoing compliance management.
We also provide our nominee director service as an alternative, and can advise on the "real and continuous link" exemption for companies with established Irish operations.
Whatever your situation, we will give you a straight, honest answer on the best route forward with no unnecessary complexity and no upselling.
Non-EEA Director Bond Service — €2000 + VAT
- ✓ Meets Irish EEA director compliance requirements
- ✓ Revenue-approved non-resident director bond included
- ✓ Full documentation and CRO filing support
- ✓ Fast and hassle-free setup process
- ✓ Secure handling of all legal records
- ✓ Ongoing compliance and advisory support
FAQs
Is the Section 137 bond refundable if I appoint an EEA director later?
No. Once the two-year Section 137 bond is issued, the premium is non-refundable even if you appoint an EEA-resident director midway through.
Does a non-resident director bond cover company debts?
No. The €25,000 bond is a surety bond exclusively protecting the Irish state against statutory fines and tax penalties, not commercial business liabilities.
Are UK citizens still considered EEA residents for Irish companies?
No. Following Brexit, UK residency no longer satisfies Section 137 of the Companies Act 2014, requiring UK founders to take out a bond or appoint an EEA director.
Start Your Business Journey Now
Get in touch with our team today to discuss your Irish company registration, Section 137 non-resident director bond, or nominee director alternatives.
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