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Company Law

Dáil Éireann Debate, Wednesday - 29 May 2013

Wednesday, 29 May 2013

Questions (121)

Pearse Doherty

Question:

121. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation his views on whether, following a 1998 report on Irish registered non-resident companies, changes need to be made to IRNR companies, including an activity test for all companies applying for registration that would see a precondition of applying for registration being required to demonstrate that it intends to carry on a business or economic activity in the State. [26065/13]

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Written answers (Question to Jobs)

The Company Law measures taken in response to the concern in the 1990s regarding Irish Registered Non-resident companies are contained at sections 42-51 of the Companies (Amendment) (No. 2) Act, 1999 as amended.

First, as a precondition of incorporation, every application for registration is required to demonstrate that the proposed company intends to carry on an activity in the State.

Secondly the 1999 Act required that every company registered in the state was required to maintain an Irish resident director or a bond to the value of €25,394.76. The Irish resident director requirement was subsequently changed under the Companies (Amendment) Act 2009 to a requirement for a director resident in the European Economic Area. The requirement for either a bond or an EEA resident director does not apply if the company obtains from the Registrar of Companies a certificate that the company has a real and continuous link with one or more economic activities in the state. The company concerned must provide proof of such a link.

A statement from the Revenue Commissioners that it has reasonable grounds to believe that the company has such a link is deemed proof of a link under the Act. Additionally the number of directorships which could be held by one person was limited to 25 (subject to certain exemptions). Finally the Act contained enhanced strike-off provisions and enhanced notification to the CRO where directors have resigned.

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