On the 31st Dec 2020 the transition period for UK’s departure from the European Union will expire and under section 137 of the Irish Companies Act all Irish companies are required to have an European Economic Director (“EEA Director”) and as the UK will not be part of the EEA UK Resident directors of Irish companies that do not have an EEA director will need to take action by one of the 3 options set out below.
If you or the company do not action one of the options below it will be a criminal offence under the Irish Companies Act ,for the Company and each officer of the company, and classed as a category 4 offence which can carry a fine up to €5,000.
There are three options that need to be actioned and which Amstrow can assist with. We have also set out the lead in times so action needs to be taken now for the arrangements to be in place by the end of the year.
- Appoint an EEA-resident Director- This will be the fastest option and the Director can be appointed within 7 days. Amstrow Directorship Services has a pool of non-executive directors who can assist with this requirement.
- The Irish Company may take out an insurance bond in a prescribed form for the CRO to the value of €25k which provides for the payment of fines and penalties imposed under the companies act 2014 or under the Taxes Consolidation Act 1997. The Bonds lasts for 2 years and costs €1,850 . The lead in time required to get this in place is 4-6 weeks.
- The Company may apply to the Irish Revenue Commissioners for a real and continuous link certificate on the basis that the company’s affairs are managed by one or more persons from a place of business established in Ireland. There are a number of conditions to be met. We can assist with the relevant forms and process to apply for the certificate and the lead in time is normally 8-12 weeks. Amstrow Corporate Services can assist with this requirement.
Also, from 1st January 2021 many Irish-Incorporated UK resident companies (i.e. that have central management and control in the UK) will become dual -resident for tax purposes which could lead to double taxation as well as triggering anti avoidance rules.