Setting up a company in Ireland can be attractive because of the low Corporation Tax and diverse and talented Irish workforce. Residing within the EEA also provides access to the rest of the EU. So how do non-EEA resident Directors set up in Ireland?

If you’re not a resident in an EEA country, it’s perfectly possible for you to set up in Ireland. However, there are certain conditions before you begin the registration process.

If you’re ready to set up in Ireland, then check out our online Company Formation services.

Firstly, what are the EEA countries?

The EEA consists of the 28 member states of the EU. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom, additionally Iceland, Liechtenstein and Norway.

If you’re a resident in one of the above countries, you don’t need to read on. You can go ahead and read more about company formation in Ireland.

Be aware that Switzerland is not part of the EU or EEA. Therefore if you’re living there, or in any country not listed above, let’s find out the extra steps for non-EEA resident Directors.

“Resident”, “nationality”, “domicile”, “citizen”… what is the difference and how does it affect registering a company in the state?

To set up a company in Ireland, you need to consider where you are actually living/resident. In other words, if you consider your home to be outside of the EEA, then you are considered a non-EEA resident.

For example, you have an Irish passport and you live in Dubai, therefore you’re a non-EEA resident.

Resident

Being “resident” somewhere refers to where a person lives permanently or on a long-term basis.

Nationality

The “nationality” of a person is the country where you come from or are born.

Domicile

If you consider somewhere to be your “domicile”, you are referring to a certain country you treat as your permanent home or have a substantial connection with.

Citizen

As a “citizen”, you have the legal rights in a particular country, usually, the country you were born or somewhere you have been legally accepted.

Can you open a company with a Visa?

If you have a non-EU passport and are living in Ireland or a different EEA country on the appropriate Visa, you may not need to follow the conditions. You can consult with the INIS office (Irish) to understand if you can set up a company here whilst on a Visa.

What conditions apply to non-EEA resident Directors registering a company in Ireland?

There are three ways to establish a company in the state with a Director who isn’t resident in one of the EEA countries listed above.

Purchase a Section 137 Non-Resident Director Bond

If you purchase a bond, it negates the requirement to have a Director who lives in the EEA. This means if you’re currently living in a non-EEA country, you can set up an Irish Limited Company. Therefore, you can have one or more non-EEA resident Directors when you purchase a bond. The bond insures a company for certain breaches of company law up to €25,000 for two years. So this means that the insurance needs to be renewed every two years.

And why would you go for this option?

This option is suitable if you don’t have any Directors living in an EEA country.

Appoint an EEA-resident Director

In this digital age, it’s perfectly possible to have one Director living in the EEA and one Director outside the EEA. With modern communication platforms, such as Slack, Trello and Zoom and cloud storage, such as Google Drive, Directors can communicate easier than ever!

Company registration with at least one EEA-resident Director meets the conditions to set up in Ireland, so now you’re ready to form your company.

Establish a real and continuous link with economic activities in Ireland

These economic activities can include evidence of Irish employees, suppliers or customers. Revenue will seek proof of trade in Ireland and each company may have different means of doing so. This means you may need to seek advice from an accountant to discuss your specific circumstance.

It’ll be difficult to show any proof of linking to the state within your first two years after incorporation. So we advise you to think about your economic activity before considering to register a company in Ireland. Generally, purchasing the bond upon incorporation and building a relationship with Ireland over that period of the first bond, gives you sufficient time to demonstrate a real and continuous link. But remember that because each case is different, speaking to a professional will help clear any doubts.

The process of company registration when you need to purchase a bond

1. Pick the perfect company registration package for you - don’t forget to include the bond

Buy Company Registration

2. Securely provide us with your new company information and ID verification documentation

3. Sign the paperwork and send them to our Dublin Office. Your company will be set up within 2 weeks!

Once you avail of our services, our expert Company Team will look after everything you need to get your company registered!

Get in touch with us today. You can email us on hello@accountantonline.ie or call us on +353 1 905 9364.