Wednesday, 10 July 2013

Questions (36, 50)

Brian Stanley

Question:

36. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation the number of Irish registered non-resident companies in the State. [33506/13]

View answer

Brian Stanley

Question:

50. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation his plans to monitor the actions of Irish registered non-resident companies in the State. [33507/13]

View answer

Written answers (Question to Jobs)

I propose to take Questions Nos. 36 and 50 together.

I refer the Deputy to my response to Question 115 of 30 May 2013 in which I indicated that I understood from my colleague, the Minister for Finance, that he has been advised by the Revenue Commissioners that the number of companies that are incorporated here but non-resident for tax purposes is not available as they are not separately compiled. Therefore, it is not possible to provide the information requested.

As indicated in my reply to Questions Nos. 116 to 118, inclusive, of 30 May 2013, significant measures were taken in response to concerns in the 1990s regarding Irish Registered Non-resident companies. These can be found at sections 42-51 of the Companies (Amendment) (No. 2) Act, 1999 as amended.

The relevant measures placed the following obligations on companies wishing to incorporate in Ireland:

Firstly, 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 Act requires that every company registered in the State is required to have and maintain at least one director that is resident in the European Economic Area or the company must hold a bond to the value of €25,394.76.

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 can 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 Companies Registration Office where directors have resigned. The Companies Bill 2012 contains similar provisions to sections 42-51 of the Companies (Amendment) (No. 2) Act, 1999 as amended.