A significant number of the appointments of London Registrars as a process agent in the UK are made by airlines for aircraft leases they take on. However, this is by no means the only circumstance in which aviation businesses may seek out this service.

What is a process agent in the UK as far as airlines are concerned?

It is, of course, important to remind ourselves at this point of the broader purposes that process agents serve for organisations including, as well as excluding, airlines.

A given process agent in the UK, when appointed by an organisation such as an airline, becomes a representative of that organisation whose function it is to accept legal documents and service of process on the entity’s behalf.

Where the given legal agreement is governed by English law, it is therefore conditional upon an airline lacking a registered address in England or Wales to comply with the counterparty’s demand for a UK process agent to be appointed.

This would ensure that in the event of the counterparty needing to take legal action against the airline (the appointor) at any point during the term of the contract, and with notice and service upon the process agent having been duly effected, there are no legal obstacles for court proceedings to be started in accordance with English court procedure rules.

3 situations in which the need for a UK process agent typically arises for airlines

With cross-border transactions often making the appointment of a process agent in the UK inevitable, here are some of the scenarios in which this is likely to be a contractual obligation for the airline in such an agreement:

• Aircraft leasing agreements

A classic example situation here would be an airline based outside of the UK – such as in Dubai – leasing an aircraft from a UK-based lessor, under a contract governed by English law.

However, it is worth pointing out at this stage that the counterparty, or the lessor, in this situation doesn’t necessarily need to be in the UK, in order for them to demand that a UK-based process agent is put in place. It could be that the lessor in this scenario is not based in either the UK or Dubai, but the contract between them is based on English jurisdiction, with any legal notices or court documents related to the lease to be served efficiently within the UK.

• Financing or loan agreements

Another common scenario is that of a non-UK airline looking to obtain financing from a lender based in the UK, such as a City of London bank.

If the airline ultimately commits to a syndicated loan governed by English law, the lender will invariably demand the appointment of a process agent in the UK.

In the world of aviation finance, loans may well involve multiple jurisdictions. This underscores the importance of having arrangements in place to simplify any legal proceedings that may need to take place at a later date, while minimising delays or costs.

• ISDA agreements (derivatives and hedging)

It is common for airlines to utilise International Swaps and Derivatives Association (ISDA) agreements as a means of hedging fuel costs and currency risks.

After all, jet fuel represents one of the major expenses faced by airlines, with prices that can fluctuate significantly. Airlines are vulnerable to ups and downs in currency exchange rates, too, as a consequence of their operations across multiple countries.

Unsurprisingly, then, this is another example of a situation in which a process agent in the UK may need to be appointed, so that if disputes or contractual enforcement issues occur later, the relevant legal processes can be quick and smooth.

To discover in greater detail the nature of London Registrars’ work as a process agent in the UK before you enquire to us directly, please feel free to download and peruse our brochure for our process agency services.

A UK-based process agent service is typically sought in situations where an organisation based outside of the UK needs to have an authorised representative based in the UK to accept legal documents, notices, and proceedings on the overseas client’s behalf. 

A classic example of such a situation would be if the foreign organisation is looking to enter into a contract with a UK-based counterparty, which has insisted on a process agent being put in place as part of the arrangement. 

This contractual condition being fulfilled with the non-UK party’s appointment of a process agent, would make it easier for the counterparty to take legal action against the non-UK party later, in the (hopefully unlikely) event of such action being needed. 

For what types of overseas organisations might a UK process agent service be essential? 

Not only the distinctive structure of the UK energy market, but also the regulatory obligations imposed on gas and electricity companies involved in the country, can influence the circumstances in which a process agent in the UK may be needed. 

Here, then, are a few examples of organisations that may need to put in place a process agent: 

• Energy suppliers based outside the UK 

If a company is supplying energy or gas to consumers in the UK but is incorporated outside of the UK, it may be necessary for such an organisation to appoint a UK-based process agent to comply with the licensing conditions of the regulator, the Office of Gas and Electricity Markets (Ofgem). 

• Non-UK generators of gas and electricity 

A foreign company operating power plants or renewable energy facilities such as offshore wind farms, may need to seek out a UK process agent service for contracts in relation to energy connection, grid connection agreements, or environmental projects that Ofgem oversees. 

• Transmission and distribution operators 

If an entity from outside of the UK is involved in the ownership or operation of gas or electricity networks in the UK and holds UK assets or licences, this is a further example of the kind of organisation that may be obliged to reach out to a process agent in the UK. 

• Participants in the UK wholesale energy market 

There are various parties involved in the wholesale energy market that sees electricity and gas bought and sold in huge quantities between energy generators and suppliers. A non-UK company that trades in this market may need a UK process agent service for contractual reasons, or in relation to Ofgem’s efforts to prevent abuse in the energy market. 

• Metering and asset management firms from outside the UK 

A given organisation may be based in another country, but it may nonetheless be involved in gas and electricity metering in the UK – for example, as a meter installer or in asset management. Such an entity subject to Ofgem’s codes of practice may require a UK-based process agent for the handling of contractual issues or regulatory disputes. 

To learn more about the various ways in which our own UK-based process agent service at London Registrars can provide you with a cost-effective entity that represents your interests in the country, please feel free to download our process agency brochure or to contact us directly.

If you have landed on this page having searched online for information about what a process agent is and how this type of service works, you are in the right place.
Our team at London Registrars is ready to give your organisation outside the UK the benefit of a UK-based process agent, who will be able to receive formal notices on your behalf.

However, at this stage, there may also be various things you don’t know about what a process agent does and doesn’t do. So, we thought we would outline a few things that mark out process agency services, to guide you in your choices.

Process agents are known by various terms. A process agent isn’t always referred to as a ‘process agent’; sometimes, you might have come across references to terms like ‘agent for service of process’, ‘registered agent’, or ‘resident agent’. Regardless, these all describe the same service.

Whilst it is not a legal requirement to appoint a process agent, you may find that in the event of your organisation wanting to enter into a contract under English law, the counterparty may require you to appoint a UK process agent as part of the contract terms. This would facilitate the counterparty achieving “service” of legal documents on you should it be necessary for them to take court action to enforce the contract at any point in case of you defaulting on it.

A process agent can fulfil various important functions. Another classic example of a situation, where the appointment of a UK process agent may become relevant, is when a business outside the UK wants to raise a loan from a City institution, or even from the European Bank for Reconstruction and Development, such a loan is unlikely to be granted unless a process agent who is acceptable to the counterparty (the lendor) has been appointed to ensure service is achieved for action in the UK courts to be taken, should you later default on that loan agreement.

However, as a non-UK entity looking to appoint a process agent in the UK, it is worth you bearing in mind the various capacities in which your process agency can act. They might act as a process agent for court actions, receive documents in relation to arbitration proceedings, and receive notices under contracts where there is a need for an independent party.

A process agent isn’t a role that can be filled by just anyone. When you are comparing your options for an agent for service of process, it is crucial to ensure the process agent instils confidence in both the appointing company and the counter- party in any given contract. In other words, a process agent fulfils the role of a trusted professional, which helps to explain why so many organisations and individuals place the utmost faith in London Registrars’ own well-regarded process agency service.

Finally, a process agent is different from a process server. It is important not to get these two distinctly different services confused. One could say that it is almost the opposite of each other in that the purpose of a process agent is to receive service of process on behalf of their client (often called ‘the appointor’) whereas a process server’s role is to serve proceedings on the counterparty.

Would you appreciate further advice and guidance in relation to our professional and cost-effective process agent service, and its relevance to your organisation? If so, you are welcome to enquire to our team here at London Registrars today via email or phone.

November 2022

For a business based outside the UK, a process agent can play a vital role. That’s because if such a company is raising a loan from a City institution or dealing with UK tenders or suppliers, contractual obligations can make it impossible for them to be served notices, proceedings or documents in their own country. A UK process agent is a business that accepts service of these notices, proceedings and documents on behalf of its overseas clients, and London Registrars (https://www.london-registrars.co.uk) is a long established player in this business. Continue reading

London Registrars (https://www.london-registrars.co.uk/) is a corporate and legal support firm offering a range of services, including process agency services. Here, London Registrars looks at exactly what process agency services are and how they may be able to help your company. Continue reading