If you are forming an Irish company and none of your directors live in an EEA country, you have a legal obligation to satisfy before your company can be registered. You need either an EEA-resident director on your board or a Non-Resident Director Bond in place with the CRO.
TAS Consulting arranges Section 137 Bonds for non-EEA resident directors of Irish companies. We manage the full process from sourcing the bond through an authorised insurer to registering it correctly with the Companies Registration Office so your company formation is not delayed and your compliance position is solid from day one.
✓ Fast 5-day setup ✓ All government fees included ✓ Complete legal documentation provided ✓ Free automated compliance tracking ✓ Free secure legal data room ✓ Ongoing legal and business support
✓ 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
A Non-Resident Director Bond formally known as a Section 137 Bond under the Companies Act 2014 is an insurance bond that allows an Irish company to be incorporated and operated without having an EEA-resident director on its board.
Under Section 137 of the Companies Act 2014, every Irish private limited company must have at least one director who is ordinarily resident in a European Economic Area (EEA) country. The EEA includes all 27 EU member states plus Norway, Iceland, and Liechtenstein. The United Kingdom is not an EEA member state since Brexit.
If no director satisfies this residency requirement, the company must hold a Section 137 Bond. The bond is:
Valued at €25,000
Issued for a two-year period
Arranged through an authorised insurer registered in Ireland
Registered with the Companies Registration Office (CRO)
Renewable every two years for as long as the company has no EEA-resident director
The bond functions as a financial guarantee it covers Revenue penalties, fines, and other enforcement costs that might arise from the company’s activities. It is not insurance for the company’s debts or liabilities generally it is specifically a compliance mechanism that satisfies the EEA director residency requirement under the Companies Act 2014.
How the Section 137 Bond Process Works
TAS Consulting manages every step of the bond arrangement. Here is how it works:
Step 1: Confirm Your Residency Position: We review the residency status of all proposed directors. If no director is EEA-resident, we confirm the bond requirement applies and advise on whether a bond or a nominee EEA director is the more appropriate solution for your situation.
Step 2: Source the Bond Through an Authorised Insurer: The bond must be issued by an insurance company authorised to operate in Ireland. TAS Consulting works with authorised insurers to arrange the €25,000 bond on your behalf. We manage the insurer application, the premium payment, and the issue of the bond document.
Step 3: Register the Bond with the CRO: Once issued, the bond is lodged with the CRO as part of your company formation filing or as a standalone filing if your company is already incorporated. The CRO records the bond and the company is then compliant with the Section 137 requirement.
Step 4: Renewal Management: The bond is valid for two years. TAS Consulting will contact you in advance of the renewal date to ensure the bond is renewed without interruption. A lapse in bond coverage is a compliance breach under the Companies Act 2014 renewal management is not something you want to leave to chance.
Bond vs Nominee EEA Director
When a company has no EEA-resident director, there are two compliant solutions: the Section 137 Bond or the appointment of a nominee EEA-resident director. TAS Consulting provides both services and will give you an honest recommendation based on your specific circumstances.
Section 137 Bond
No change to your company’s director structure
Bond premium is the primary cost typically a few hundred euros per year
Must be renewed every two years
Some Irish banks are more cautious about companies operating solely under a bond no Irish or EEA director on the register
Best suited to companies where cost is the primary consideration or where a nominee director is not practical
Nominee EEA-Resident Director
A qualified, professional EEA-resident director is appointed to your company
The nominee acts under a formal agreement that protects your control of the company
Satisfies the EEA director requirement permanently (no two-year renewal)
Generally viewed more favourably by Irish banks during the account-opening process
Better for companies planning to open Irish bank accounts or dealing with regulated counterparties
TAS Consulting can arrange a nominee EEA director as an alternative or supplement to the bond
For many non-EEA companies forming in Ireland particularly those from the UK post-Brexit, the United States, or the UAE the bond is the faster and more cost-effective initial solution. For companies with more complex banking or regulatory needs, the nominee director route is usually the stronger choice.
What Happens If a Company Operates Without a Bond?
Operating an Irish company without an EEA-resident director and without a Section 137 Bond in place is a statutory breach of the Companies Act 2014. The consequences include:
The CRO can refuse to register a new company that does not satisfy the requirement at incorporation
An existing company that allows its bond to lapse without appointing an EEA director is in statutory default
Directors of non-compliant companies can face personal liability for compliance failures
The company’s legal standing may be questioned in transactions, banking relationships, and Revenue dealings
TAS Consulting manages the bond and renewal process specifically to ensure our clients are never in this position.
Who Needs a Non-Resident Director Bond?
The Section 137 Bond is relevant for:
UK business owners and entrepreneurs incorporating in Ireland post-Brexit UK residency no longer satisfies the EEA requirement
US, Canadian, and Australian business owners forming Irish companies as their EU base
UAE, Singapore, and Hong Kong-based directors incorporating in Ireland for EU market access
Irish passport holders living abroad outside the EEA who want to run an Irish company
International companies establishing an Irish subsidiary with a non-EEA director structure
Any Irish company whose sole EEA-resident director is stepping down and no replacement EEA director is being appointed
Non-Resident Director Bond Service
When you engage TAS Consulting to arrange your Section 137 Bond, here is what is included:
Residency assessment for all proposed directors confirming whether the bond is required
Sourcing the bond through an authorised Irish insurer
Managing all insurer documentation and premium arrangements
Lodging the bond with the CRO as part of your company formation or as a standalone filing
Confirmation of CRO registration once the bond is in place
Two-year renewal reminder and management so the bond never lapses
Ongoing advice on whether the bond or a nominee EEA director is the right long-term solution
TAS Consulting also provides the full suite of related services company formation, company secretarial, nominee EEA director, registered office address, and tax and accounting so your Irish company is fully set up and compliant in one engagement.
How long does it take to arrange a Section 137 Bond?
In most cases, a bond can be arranged and lodged with the CRO within three to five business days of instruction. This means bond requirements do not need to significantly delay your company formation.
Can a UK resident satisfy the EEA director requirement?
No. Since the UK left the EU on 31 December 2020, UK residency no longer satisfies the EEA director requirement under Section 137 of the Companies Act 2014. UK-resident directors must either appoint an EEA-resident director or arrange a Section 137 Bond.
Does the bond protect the company’s creditors?
No. The Section 137 Bond is not creditor protection. It is a compliance instrument that specifically covers Revenue penalties, fines, and enforcement costs arising from the company’s non-compliance with Irish tax obligations. It does not protect against general commercial liabilities.
Can I cancel the bond if I appoint an EEA director later?
Yes. If you subsequently appoint a director who is ordinarily resident in an EEA country, the Section 137 Bond requirement is satisfied by their appointment. The bond can be cancelled at that point and you will not be required to renew it.
Does the bond affect how I run the company?
No. The bond does not restrict how you operate, manage, or make decisions in the company. It is purely a compliance mechanism. Your control of the company is unchanged.
TAS Consulting’s nominee directors are experienced Irish professionals with a strong track record across multiple board positions. They are fully vetted, professionally indemnified, and well regarded by Irish accounting and legal practitioners.
We also provide a complete suite of supporting services to get your company fully operational.
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