No Deal Brexit – Are You At Risk?
Irish companies could be at risk of breaching Irish Company Law in the case of a No-Deal Brexit. The current law states that Irish companies must have at least one director who is a resident in the EU or EEA. As it stands, UK resident directors qualify but under a No-Deal Brexit this would change virtually overnight. Irish companies could be left scrambling to appoint a new EEA resident director to avoid penalties.
Thankfully Irish companies can protect themselves in advance by taking any of the following actions:
Appoint another Company director who is resident in EEA but outside of the UK:
- If a new EEA resident director is appointed this will mitigate the company compliance risk for a No-Deal Brexit outcome.
- In certain circumstances, international companies setting up in Ireland may want to employ the services of an Irish resident director in a non-executive capacity. We can assist with this.
The company will have to put in place a bond to the value of €25,000 with a minimum period of validity of two years and with further actions required every two years subsequently:
- The bond would act as an insurance policy against any of the following penalties.
- Fines imposed on the company in respect of offences under the Companies Act 2014. (e.g. failure to file Annual Returns & Audited Accounts on time)
- Fine for failure to supply certain information to the Revenue Commissioners. (e.g. Form CRO 11F)
- Any penalty which the company has been held liable to pay under the Taxes Consolidation Act 1997.
- Any cost in recovering any of the above fines.
Application to certify that the company has a real and continuous link with the state:
- There is a requirement for the company create significant local employment and have a significant economic link which then requires approval by Revenue.
If you’d like to know more about the options presented above or any related Company Compliance matters, please don’t hesitate to get in touch and we’ll be glad to assist you.