A Section 137 bond for non-EEA resident directors starting a company in Ireland. It is a type of bond that serves as a guarantee for any potential liabilities or debts that the company may incur while the non-EEA resident director is in charge. The bond is usually required to be in place before the non-EEA resident director can take up their position which means it must be in place before you can proceed with company formation in Ireland.

The bond is typically issued by an insurance company or outsourced to a professional company formation agent, like Kinore. Let us take care of all the paperwork involved so you can focus on starting a business.

Bond for Non-EEA Resident Directors
If there are no EEA resident Directors in your company, you need to purchase a bond to insure the company.
2475 (+VAT)

Who needs a Section 137 bond?

Any company that does not have an EEA-resident director needs a Section 137 bond. A non-resident director refers to a director that is not living in any of the EEA-member states.

The EEA consists of the 28 member states of the EU. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Iceland, Liechtenstein, and Norway.

It’s important to note that Switzerland is an EEA member state even though Ireland has other arrangements with this state.

About the Section 137 Bond

01.

Needs to be renewed every two years

You need to renew a bond every two years unless you have appointed an EEA-resident director or you need to establish a real and continuous economic link with Ireland to apply for an exemption.
02.

Holds the value of €25,000

The bond provides security in the event that your company fails to pay all or some of the fines imposed by the Revenue or the CRO. Note that it does not cost €25,000 to secure a bond in Ireland. Contact us for more information.
03.

Must be in place before incorporation

The bond must be secured before you can apply to the Companies Registration Office (CRO) to set up an Irish company. You must also meet the other requirements to set up a company in ireland.

How do I get a Section 137 bond?

The Surety of the bond must be a member of a bank, building society, an insurance company or a credit institution.

You can also outsource this process to a company formation expert like Kinore – we can take care of the whole process on your behalf as part of our Non-EU/EEA Company Formation Package. Our team of professional company secretaries are on hand to prepare all the Section 137 bond paperwork. We work with a trusted third-party financial institution to underwrite the bond.

Bond for Non-EEA Resident Directors
If there are no EEA resident Directors in your company, you need to purchase a bond to insure the company.
2475 (+VAT)

What is a B67 form? Alternative to bond

A B67 form is an application for a Section 140 certificate stating that a company has a real and continuous link with one or more economic activities being carried on in the State.

If your company has an established presence in Ireland, you can apply for an exemption from this requirement. The company must have “a real and continuous link with one or more economic activities that are in carried on in the State

The form needs to be accompanied by a statement from Revenue confirming the company has reasonable grounds to believe that the company has a “real and continuous link” with the State.

Your accountant can help you apply for this certificate. If you need help in this area, talk to our Client Services team about your situation.

What are the consequences of not having a bond?

It is a criminal offence not to have at least one EEA-resident director of an Irish-registered company or have a Section 137 in place.

Non-compliance with Irish Company Law may lead to the following:

  • Unable to file Annual Returns on time leading to on-the-spot fines or high court order
  • Involuntary strike-off
  • You may be prosecuted
  • Prosecution of company and directors

Frequently Asked Questions

Bond for Non-EEA Resident Directors
If there are no EEA resident Directors in your company, you need to purchase a bond to insure the company.
2475 (+VAT)