Who is a Company Registration Agent?
Serious entrepreneurs would rather spend time on marketing-related chores rather than assume the role of a leg man doing queries, canvassing, hopping from one government agency to another, securing permits, clearances, and registration, or even receiving legal papers just like secretaries do.
The bottom line is that an entrepreneur can make more money by delegating ministerial workloads to a company registration agent.
As such, companies embarking on an economic plan geared towards sustainable growth need to have a company registration agent. Of course, with a mandate to receive legal papers on its behalf.
Need for Company Registration Agents
Forming or incorporating a business classified as a corporation or limited liability company (LLC), seasoned investors find it practical to tap a company registration agent.
In fact, governments in countries hosting foreign investments have adopted a policy. This policy is requiring foreign corporations and LLCs to have a company registration agent holding office. indeed, this needs to be in a company registered office in the state where it was incorporated.
The Job of Company Registration Agent
The company registration agent is basically the conduit between the company and the government of the state where the company registered office is situated.
The job entails errands insofar as compliance and legal matters are concerned.
As it is, the company registered agent is the designated company representative. This agent may receive important legal and tax documents on its behalf.
Among the documents landing on the desk of a company registration agent include:
- Legal documents coming from the government prosecution office or the local court. Falling under these legal documents are summons, duly-filed complaints notifying the company a lawsuit has been filed against it. India refers to documents of this nature as “process.”
- Official government correspondences in form of a mail sent by the state. Among these documents are annual reports and statements.
- Wage garnishment orders from the court. It is a court order requiring the company to set aside a portion of the company revenue as payment to an obligation, a debt most probably. The court further directs the company to directly send the segregated amount to the creditor or person to whom the court ruled to collect from the company. The company registration agent shall regularly receive garnishment orders until the obligation has been fully complied with.
- Tax documents sent by the government agency in charge of tax assessment and collection of taxes.
- Lien is defined as a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.
- Court summons and subpoenas for other litigation aspects involving the company. It could be in violation of the local laws on investments, trade, finance, etc.
No Use for Leased Drop Boxes
As a matter of government policy, a company registration agent must be at the place declared by the company when it was applying for registration.
A physical address is a must, rendering Post Office boxes and private mailboxes useless. As it is, even the UPS Store would not qualify to be a company registration agent.
Moreover, a company registration agent should be accessible during normal business hours.
It is important to take note that a company registration agent’s address is in public records. Thus, they would be accessible to the public.
Interestingly, the state gives the company an option not to declare an actual business office. But not the company registration agent’s address.
Legal Background for Registered Agent
While there is no restriction for the investors or an individual to be a company registration agent for a corporation or LLC, it is strongly advised to tap a company registration agent which has the capability to properly handle legal papers and other important documents which may adversely affect the business if mishandled or taken lightly. Each and every document that falls on the desk of the company registered agent is deemed as urgently important.
Crowdsourcing for Company Registration Agent
Admittedly, legal papers entail businessmen so much time to comprehend. In fact, it may even cause stress and derail focus on the business, where they should be spending more time.
Smart businessmen should consider weighing options. Specifically, to multi-task by being the investor and company registration agent or tap an incorporation service provider in India, with a proven track record of excellence even in effectively handling the company’s legal documents, allowing businessmen to concentrate on what they do best – rack up profits through their business.
3E Accounting takes pride in having effectively helped a long list of businesses in India.
For more information, please feel free to contact us.