Dáil Éireann Debate, Tuesday - 11 June 2013
358. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the impact of the Companies Bill 2012 on companies that are currently Irish registered non-resident companies. [26887/13]
View answer359. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the impact of the Companies Bill 2012 with regard to the number and residency requirements of directors in Irish registered non-residential companies. [26888/13]
View answer360. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the impact of the Companies Bill 2012 with regard to the requirement to carry out activity in the State on Irish registered non-residential companies. [26889/13]
View answer361. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will outline the residency requirements for companies under the proposed Companies Bill 2012. [26890/13]
View answerI propose to take Questions Nos. 358 to 361, inclusive, together.
As set out in my reply to the Deputy on 30 May 2013, measures were taken in response to concerns in the 1990s regarding Irish Registered Non-resident companies. These measures are contained at sections 42 to 51, inclusive, of the Companies (Amendment) (No. 2) Act, 1999 as amended. 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. 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. The number of directorships which could be held by one person was limited to 25 (subject to certain exemptions). The 1999 Act contained enhanced strike-off provisions and enhanced notification to the CRO where directors have resigned.
With regard to residency requirements, all companies incorporated in the State are regarded as resident in the State for tax purposes, unless they fall under specific exemptions in tax law. Policy responsibility for tax issues rests with my colleague the Minister for Finance. I have no direct function for such matters. In relation to residency requirements for directors, specific residency rules are prescribed by section 44 of the Companies (Amendment) (No.2) Act, 1999 as amended. These residency rules largely mirror the residency provisions of section 819 of the Taxes Consolidation Act 1997. A person is considered resident if he or she has been present for an aggregate of at least 183 days or more in any 12 month period. The Act also provides that he or she can be resident for an aggregate of 280 days over two 12 month periods, subject to certain qualifications. The Companies Bill 2012 contains similar provisions to sections 42 to 51, inclusive, of the Companies (Amendment) (No. 2) Act, 1999 as amended.
