What is Registered agent?
A registered agent is the licensed local representative every company must maintain in its jurisdiction of incorporation. The agent receives official mail and legal service, files statutory documents, and - in offshore centres like BVI or Panama - is the gatekeeper who runs KYC and maintains company registers.
What the agent actually does
In the US model (Delaware), the registered agent's core job is receiving service of process and state notices at a physical in-state address - a commodity service at $50–300 per year. In the offshore model (BVI, Cayman, Panama), the agent is far more central: only licensed agents can incorporate companies, they hold the registers of directors and members, file UBO information with authorities, and are legally responsible for AML compliance on your file. Choose accordingly - an offshore agent is a long-term compliance partner, not a mailbox.
Costs and what drives them
Delaware: agent fees are trivial next to franchise tax. BVI: expect $800–1,500 annually for agent plus registered office, more with nominee services or high-risk industry surcharges. Crypto and iGaming companies pay premiums because the agent bears enhanced due-diligence obligations. Switching agents is possible everywhere but involves file transfers and fresh KYC - factor that into choosing the first one.
Failure to maintain an agent
Letting agent fees lapse leads to the company being struck off the register - in BVI this can happen within months, after which restoring the company costs multiples of the unpaid fees and blocks any transaction in the meantime. Banks periodically request a certificate of good standing, which an agent for a struck-off company cannot issue. Treat the agent invoice as non-negotiable annual maintenance.
Frequently asked questions
Can I be my own registered agent?
In Delaware, yes, if you have a physical Delaware address - rarely practical for non-US founders. In offshore jurisdictions like BVI or Panama, no: only locally licensed agents can act, and every company must have one.
What happens if I stop paying my registered agent?
The agent resigns or the company falls out of good standing and is eventually struck off the register. Restoration is possible but costs significantly more than the missed fees and can take weeks.
Ready to put this into practice?
OnScale handles the full setup - formation, KYC, and documents - with one fixed price and one point of contact.