British directors after Brexit?
What should you do if you have a Non EEA resident director after 29 March 2019?
If you are on of the many companies that only have British Directors after 29 March 2019, you may need to think about getting a new director that is resident in Ireland or another EEA member state.
If the UK crashes out of the EU on 29 March, here are some options that could be open to you, to ensure you can still keep your Irish Company compliant with Irish Company Law.
1. Appoint a new director who is resident in Ireland or an EEA Member State.
2. Get a Bond in force to value of €25,000, which provides that in the event of a failure by the company “to pay the whole or part of a fine imposed on the company in respect of an offence under the Companies Act 2014 or under the Taxes Consolidation Act 1997, there shall become payable under the bond a sum of money for the purpose of same being applied in discharge of the whole or part of the company’s liability in respect of any such fine or penalty”.
The bond must have a minimum period of validity of two years,commencing no earlier than the occurrence of the event giving rise to the requirement for the bond. The surety under the bond must be a bank, building society, insurance company or credit institution.
We can arrange a bond through a third party on your behalf.
For more information on Bonds and EEA Resident Directors Please see CRO (Companies Registration Office) Leaflet 17
3. File a form B67 with the CRO.
If, following Brexit or the loss of all EEA resident directors, a company can apply to the registrar of companies for a certificate to be granted certifying that the company has a real and continuous link with one or more economic activities that are in carried on in the State, that company will be exempted from the requirement to have at least one EEA resident director from the date of the certificate, as long as the certificate remains in force.
Application for this certificate is made on Form B67, and must be accompanied by a statement from the Revenue Commissioners made within two months of the date of the application by a statement that the Revenue Commissioners have reasonable grounds to believe that the company has such a link.
The revenue confirmed as the “the UK is currently part of the EEA, a Statement 140, Companies Act 2014 will not issue. After 29/03/2019, should the UK no longer be part of the EEA, a statement can be applied for”.
Please see link to CRO Form B67.
If you find you no longer have EEA resident directors or have any other questions on company director requirements or company formations please feel free to contact us.