• Companies incorporated in an EU state must be recognised in other EU states. Generally, such companies have most of the same rights as EU resident persons. There are common EU wide rules on companies which harmonise certain aspects of company law.
  • After 2021,  Ireland and the United Kingdom will continue to recognise companies formed in the other jurisdiction under earlier general principles. Some continental European jurisdiction have more complex rules on recognising foreign corporations and the particular position should be considered in the state concerned, where this is an issue which arises.
  • The Irish Companies Acts require that certain companies  have a EEA (EU plus Norway Iceland and Liechtenstein) resident director. The obligation applies unless there is either a €25,000 bond (to cover fines and other breaches of obligations) or a certificate from the Companies Registration Office (based on confirmation by the Revenue Commissioners) that the company has a real and continuous link with a trade in the State. The premium on the bond costs approximately €1,500- €2,200 and must be renewed periodically. There is no equivalent requirement under the UK Companies Acts
  • Where a company has sufficient presence in the host state so as to constitute a branch, it must register as a branch with the host state companies authority (e.g. Companies House in the UK or Companies Registration Office in Ireland). There are some differences in the information to be filed by an EU branch and a third country branch and there are different registers. The Irish Companies Registration Office proposes to move UK companies on the branch register to the external register. Non- UK companies with branches in the UK companies must file certain additional information with Companies House.
  • In some cases EU wide groups must produce and file group accounts and may be exempt from producing and filing individual company accounts at present. Therefore in some cases, EU and UK group companies may no longer qualify for the exemption after 2021 and may need to produce and file accounts, where they were not previously required.
  • There are EU wide rules on the qualification of auditors. In some cases, auditors are approved to conduct audit  work throughout the EU based on home state qualification. They will no longer apply for EU auditors in respect of United Kingdom and United Kingdom auditors in respect of the EU after 2021 . There are close ties between the UK and Irish accounting and audit bodies, which will afford continuity in many cases.
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