FOR IMMEDIATE RELEASE
Contact: Catherine Lu, Public Information Officer
(702) 486-6982 / 334-7953
(Carson City, NV; March 12, 2014) – Nearly 850 registered agents (RA) are noncompliant and may have to sacrifice their ability to serve in such a capacity, or face fines and penalties if they do not take the corrective steps to become compliant with the law, according to Nevada Secretary of State Ross Miller.
Nevada has been scrutinized by national media outlets in recent years and gained a reputation for tolerating suspicious RA practices and for serving as a haven illegal shell companies. Changes to the law coupled with compliance efforts assist the Secretary of State’s office in cracking down on registered agents performing their duties illegally.
“My office’s aggressive pursuit of noncompliant registered agents will protect Nevada entities from engaging in business with individuals who fail to follow the law,” said Miller. “While noncompliant RAs face stiff fines and penalties, entities that use improperly licensed RAs may also suffer consequences under the law.”
SOS compliance officers have contacted 396 RAs who represent 10 or more entities and must register as commercial registered agents (CRA), as set forth by Senate Bill 60 passed during the 2013 Legislature. Effective October 1, 2013, SB 60 revises the Registered Agent Listing provisions to ensure that RAs representing Nevada entities have not been convicted of or otherwise disciplined for activities containing an element of fraud or deception.
The SOS office is also tracking 452 RAs in violation of NRS 14.020, which requires RAs to maintain a physical Nevada address staffed with one or more natural persons authorized to receive service of legal process, as a result of audits performed under NRS 77.443. The noncompliant RAs were informed that they must secure a proper physical address in Nevada, or lose their ability to serve as RAs and face fines and penalties.
A person who violates the requirements of the model registered agent act is subject to a civil penalty of not more than $500. Entities without a proper RA are subject to a fine of not less than $100, nor more than $500 for each day of such a violation.
In addition to the information that is already required, CRAs must include the following in their Commercial Registered Agent Registration Statement:
- The name, address, and telephone number of the individual who has the authority to act on behalf of the CRA.
- A statement from the individual registering as a CRA, or that each director, officer or managing agent of a commercial registered agent has not been convicted of a felony. If the individual has been convicted of a felony, a statement that the individual has had his or her civil rights restored.
- A statement that the CRA has not had his or her ability to serve as a CRA, or a director, officer or managing agent of a CRA denied or revoked by appropriate authority of this state or another state, or enjoined by a court of competent jurisdiction from serving as a registered agent because the individual engaged in conduct as a registered agent that was intended to or likely to deceive or defraud the public.
- The Secretary of State’s office may require additional information deemed appropriate in the registration statement, but no additional information has been determined at this time.
- The Commercial Registered Agent Registration Statement must be signed under penalty of perjury by the individual, or by an individual authorized to sign the statement on behalf of the entity.
These changes to the law bring Nevada up to par with states whose business advantages are competitive with the Silver State’s. The filing forms to register as a CRA can be found in the “Business Center” of the Secretary of State’s website, www.nvsos.gov, or by clicking here.
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