Brexit And EEA Resident Directors
The current Brexit Transition period is due to expire on 1 January 2021. As a new trade deal has yet to be agreed between UK and the EU (as of 7 December 2020), this has implications for some Irish companies with UK resident directors.
Under Section 137 of the Companies Act 2014 all Irish companies are required to have an EEA resident director; in the absence of this the company must either pay a Bond or complete a Form B67 (which confirms that the company has a real and continuous link with the State).
The UK left the European Union as of 31 January 2020 however under the transitional arrangements UK residents were deemed to qualify as EEA residents up to 31 December 2020. Accordingly any companies where the only EEA resident director was resident in the UK must comply with the other requirements of this section from 1 January 2021.
The options available to companies affected by the change are as follows:
Appoint an EEA resident director.
Pay a bond.
Consider whether the company qualifies as having a real and continuous link with the State. If it does then a B67 form needs to be completed and submitted to the Revenue Commissioners.
Once you have considered which of the options is most suitable for your company you must make preparations for the new requirements.
If you wish to avail of any of the above options or would like to discuss these please contact your partner or send us an email.