In many of our articles and posts, we often comment how each jurisdiction presents its own quirks, and how important it is to have a local partner that can guide a company through the specific aspects of the regulations of a specific country. One of the most unique aspects of the Swedish regulatory framework is what is called a “person authorised to receive service of process”, or Process Agent for short.
What is a Process Agent?
In Sweden, all limited liability companies (LLC) are required to have a Board of Directors. Of the members of said Board, at least half need to be resident within the European Economic Area. These are the very basic requirements imposed on an LLC, and they are fairly similar to those in most jurisdictions.
What sets Sweden apart from its Nordic neighbours is the requirement that the Board appoint a person who is authorized to receive service of process should their company not have an authorized representative domiciled in Sweden.
Said individual may be required when first starting your company formation in Sweden, or at a later date, like in the case of a board member moving outside Sweden, or being replaced by an individual residing abroad.
What does a Process Agent do?
The nature of the services provided by a process agent is rather simple, although essential for the compliance of your company in Sweden: Whenever a legal notice needs to be served to a company, said notice will be served to the process agent.
From this very basic task, in many cases often arise additional responsibility, usually attached to rather strict deadlines. As part of their role, then, process agents need to swiftly execute and/or forward service of notice, proceedings and other documents, on behalf of the company they are representing.
Something of great relevance to note is that, despite its important function of representation, a process agent cannot act on behalf of a company or its Board. Consequently, while a process agent can sign the receipt of a notification from an authority, like the Swedish Tax Agency, they, however, cannot sign a contract or the annual report on behalf of a company.
Who should be your Process Agent?
While a relatively simple and straightforward role to assume, it is nevertheless vital to a compliant company. Delays of any nature can have significant repercussions. A failure in responding to an imposed deadline can result in fines, revocation of a license, or even be a criminal offence. Consequently, a prompt, accurate, and effective process agent is essential to avoid finding oneself in dire straits.
We at Nordic GEM recognise the importance of this role and do not underestimate its values, in spite of its apparent straightforwardness. We offer our service as process agents by virtue of our strong local knowledge, experience, and dedication. Feel free to explore our offer where we guarantee an expeditious and reliable service, ensuring the compliance and security of your activities in Sweden.
