Section 137 Bond Explained (2026)
Short answer: If none of your Irish company's directors live in the European Economic Area (EEA), you need a Section 137 bond. It costs roughly €2,000 and covers two years. It is an insurance policy that guarantees up to €25,000 for any unpaid Revenue or CRO penalties. You can buy one through an Irish broker in under a week.
What is Section 137?
Section 137 of the Companies Act 2014 requires every Irish company to have at least one director who is "ordinarily resident" in a member state of the EEA. This is 27 EU countries plus Norway, Iceland and Liechtenstein.
If none of your directors meet that test — for example, if you and your co-founders all live in the US, India, the UK (post-Brexit) or Singapore — the company must either:
- Take out a Section 137 bond (the popular choice), or
- Appoint a nominee EEA-resident director (more expensive, more legally entangled), or
- Have the Companies Registration Office confirm that the company has a "real and continuous link" with an economic activity in Ireland (rare and hard to qualify).
How much does a Section 137 bond cost in 2026?
Most Irish insurance brokers quote €1,750–€2,300 for a two-year bond. Expect around €2,000 as a realistic budget. The bond is a single up-front payment, not an annual fee — you pay once and it covers 24 months.
When it expires, you either renew it (for another €2,000), or appoint an EEA-resident director so the bond is no longer needed.
What does the bond actually cover?
The bond is a guarantee to the Revenue Commissioners and the CRO for up to €25,000. If the company fails to pay corporation tax, VAT, PAYE or CRO penalties, Revenue can claim against the bond instead of chasing non-resident directors personally.
It is not insurance for you. It protects the state, not the founders. But from a founder's perspective, it is the cheapest way to keep your company compliant when you can't meet the EEA residency rule.
Bond vs nominee director — which is cheaper?
- Bond: ~€2,000 per 24 months = ~€1,000/year effective cost
- Nominee director: €1,500–€3,000/year depending on the provider
Over two years, the bond is typically €2,000–€4,000 cheaper than a nominee. More importantly, a nominee director has legal authority over your company by default. Most founders prefer the bond for this reason — it's a pure financial instrument with no control implications.
Where to buy one
Three common providers:
- DWF — one of the largest brokers, quick turnaround
- Arachas — competitive pricing, online application
- Gallagher — traditional broker, personal service
Your Irish accountant can arrange one on your behalf. Expect 3–5 business days from first enquiry to receiving the bond certificate, which you then attach to your CRO filing.
Common mistakes
Filing Form A1 before the bond is ready
The bond certificate must be attached to your CRO filing. If you file first and apply for the bond after, you'll get a rejection.
Assuming UK directors count as EEA
Post-Brexit, UK residents no longer satisfy the EEA test. A UK-only board needs a bond.
Letting the bond expire
If the bond expires without renewal and you still don't have an EEA director, the CRO can strike off the company. Diarize the renewal date.
When you don't need a bond
You don't need a Section 137 bond if:
- At least one director is ordinarily resident in the EEA, or
- You can prove a "real and continuous link" with an Irish business activity (very high bar), or
- You use a CLG (non-profit) structure that meets certain exceptions.
The cheap alternative: a co-founder visa-holder
If you have a co-founder already living in Ireland on a Stamp 1 or Stamp 4 visa, appointing them as a director costs nothing and removes the need for a bond entirely. For distributed teams, this is often the cleanest solution.
Where GetIrishCompany helps
Our Premium plan includes a Section 137 bond checker — it reviews your director residency and flags whether you need a bond, suggests providers, and includes the correct bond language in your Form A1 draft. If you've already been rejected for missing a bond, the Rejection Fixer AI regenerates the filing with the bond attached.
Further reading
- Companies Act 2014, Section 137 — official text
- CRO: EEA-resident director requirement
- How to open an Irish LTD as a non-resident
General information only, not legal or tax advice. Last updated 15 April 2026.