Non-EEA Resident Director Bond: What Irish Companies Need to Know
Setting up an Irish company is straightforward for many businesses, but companies with directors who live outside the European Economic Area (EEA) may have an additional legal requirement to consider. The Non-EEA resident director bond is an important part of Irish company compliance where a company does not have at least one director who is resident in an EEA member state. What Is a Non-EEA Resident Director Bond? Under Irish company law, an Irish company generally needs at least one director who is resident in an EEA member state. Where this requirement is not met, the company may need to obtain a Section 137 bond . The bond is designed to provide financial protection for certain company law obligations and potential penalties. It is not simply an optional insurance product; it is a statutory requirement in situations where the company does not have an EEA-resident director. For overseas founders, understanding this requirement before incorporating an Irish company can help prevent ...