In today’s world in which transactions between entities routinely take place across national borders, certain complexities and challenges can arise when a dispute occurs between such contracting parties. 

The appointment of an outsourced process agent for contracts can provide much-needed certainty in such scenarios. 

But what exactly is a process agent, and what difference can it make to have a process agent in place for a contract between two parties in different jurisdictions? 

Introducing the ‘process agent’, and why it can be so important 

A process agent – sometimes referred to as an “agent for service of process” – is an independent third party that receives documents, notices, and arbitration or court proceedings on a client’s behalf. They are, in effect, a local representative for a client that doesn’t have a registered office in the jurisdiction where the transaction takes place. 

Here at London Registrars, for instance, we have long acted as an outsourced process agent for contracts in the UK, in situations where our client is based abroad and lacks a UK registered office. 

As a process agent, then, we can accept service of notices, proceedings, or documents on behalf of our clients outside the UK. In situations where there isn’t a UK process agent in place for a contract between a UK party and a non-UK entity, any such court papers or documents would need to be served to the transaction party in the jurisdiction where it does have a presence.

While the aforementioned requirement to sometimes serve papers abroad is in accordance with English court procedure rules, it can be a very lengthy and cumbersome process. Unsurprisingly, then, in the case of contracts that are subject to English law, it is commonly required for a transaction party that does not have a physical presence in England to agree to a UK process agent’s appointment. 

What is arbitration, and what is its relevance to process agents? 

Arbitration is a form of dispute resolution whereby the parties to a contract agree to have a dispute between them resolved by a third-party decision-maker, instead of through litigation. Crucially, the contracting parties also agree that the third party’s ruling will be legally binding on them. 

Although the appointment of a process agent is not a strict necessity in order for arbitration proceedings to take place, it can help with aspects of this process. The process agent being in place as part of a contract means that if a dispute occurs, the process agent can receive documents related to arbitration proceedings on their client’s behalf. 

So, when it comes to the notification process for arbitration proceedings, and clearing up any ambiguity in terms of how disputes will be dealt with, a process agent can play a critical role. This will help to ensure that any disputes are resolved properly and quickly, so that both parties can then move forward. 

Enquire to our team to find out more about our UK process agency service 

If your organisation does not have a registered UK address, and you are therefore on the lookout for an outsourced process agent for contracts that are subject to English law, please don’t hesitate to contact London Registrars. 

You are also welcome to download our process agency brochure to learn more about the peace of mind and assurance that this vitally important service can bring.