Aside Project blog The Risks of Not Having Process Agents in Place

The Risks of Not Having Process Agents in Place

Process agents

Most companies in global commerce have heard the term ‘Process Agent’ and know it’s a requirement for certain cross-border financing contracts. But few realise the precise role that Process agents play and the risks of not having one in place.

Process agents are local representatives appointed to accept service of legal proceedings or notices on behalf of overseas clients in situations where the client does not have a registered office or physical presence in the jurisdiction. The appointment can be required in many types of finance transactions and a number of different industries including industrial manufacturing, shipping/aviation, investment and commercial banking, communications, energy and pharmaceuticals.

Process Agents vs. Registered Agents: Understanding the Difference

A professional Process Agent knows the exact legal processes and documents they are required to receive on your company’s behalf so you can be confident that any legal proceedings will not be missed or mishandled. This instills confidence in all parties to the financing deal and helps ensure that your transaction will be finalized on schedule.

Using a professional Process Agent also provides privacy benefits. Unlike home-based businesses that list their personal address as the Process Agent’s office, using an outsourced Process Agent service means that your business contact information is not made public and you are not exposed to junk mail and sales calls.

Motor carriers and logistics companies must have a Process Agent in every state in which they haul goods or passengers to comply with FMCSA regulations. Designating BizFilings as your Process Agent in all 50 states can help you meet this requirement and avoid fines and penalties.

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