Registered office

Is a Registered Office Address a Residential Address?

PUBLISHED ON: Aug 24 2023
PUBLISHED IN: Legal Guides

Where to register the business address is one of the first things to think about when starting a business. A frequently asked question is whether a registered office address can also be a residential address. The answer is that a residential address can be used as a registered office address. Before making this choice, there are certain crucial aspects to consider.

What is a Registered Office Address?

The official address of a registered business with the government is called the registered office address. All official mail from the government and other legal entities should be sent to this address. Anyone who is interested in knowing more about the company may contact them at this address, which is also open to the public.

Is it Possible to Use a Residential Address as a Registered Office Address?

The answer is that a residence may serve as the registered office address. In actuality, many small business proprietors decide to use their residence as their registered office address. It is because it is an affordable choice and could be practical for people who work from home.

Before using a home address as your registered office address, there are a few crucial things to consider. These include: 

Privacy issues:

It will be made public if a residential address is used as the registered office address. It implies everyone has access to it, including clients, partners, and rival businesses. For those who respect their privacy and do not want their home address to be made public, this may be a cause for concern.

Professionalism:

Using a residential rather than a commercial address can be viewed as less professional. Those who want to provide a professional image to their clients and suppliers may find this an issue.

Legal requirements:

A company must have a physical location in the same state as it was created if registered as a company or limited liability company (LLC). It is mandatory that the address should be a street address; not a Post Office Box.

Can the registered office address for an LLP or Company Registration in India be the resident address?

The registered office address may be a residential address for the LLP or company registration in India: 

The registered office address does not have to be a business address for LLP registration. It can be the residential address of one of the partners or stockholders. 

The promoters must give the registered office address with documentation, such as an electricity bill that is no older than two months and an NOC from the property owner when applying for business or limited liability partnership registration in India. As long as the infrastructure needs are considered, any address can serve as the registered office. 

Note: The NOC or leasing agreement may permit promoters to use the location for GST registration or Shop and establishment registration.

Incorporating a company or forming an LLC using a residential address is legal, and many business owners consider doing this. It is crucial to keep personal and commercial assets separate to prevent legal issues or the firm from incurring debt. A physical address is necessary for corporations or LLCs since it needs to be where legal processes may be sent. 

Along with other necessary documents, the incorporation application contains address verification for the business location. The most current utility bill is submitted with the owner's NOC and, if applicable, the rental agreement. 

Corporations or LLCs are required to have a registered agent address, which might be the location of their business. The registered agent's address is subject to public record; thus, when an LLC is run out of a house, this may not be the best scenario. No registered agent may use a P.O. Box as their address. 

Requirement for Registered Office During Company Registration in India

It is crucial to state the company's registered office at the time of incorporation and to provide supporting documentation. Normally, the following documents are required when declaring a company's registered office during incorporation:

(No-Objection Certificate) from the Landlord of Registered Office Rental or Lease Agreement between the Company and the Landlord, Water Bill, Electricity Bill, and Property Tax Receipt.

The name and address listed on the electricity bill, water bill, property tax receipt, and NOC certificate from the landlord must exactly match those listed on the rental agreement. Additionally, a company's registered office cannot be an undeveloped lot or a structure still under development. However, the registered office does not have to be a commercial or industrial facility. A company's registered office can be a home.

The Companies Act of 2013 gives the firm the option to declare a temporary location if the company's registered office was not chosen at the time of incorporation. Within 15 days of the incorporation of the company, the registered office must subsequently be stated by filing INC 22.

 

 

Can a person register for GST using their home address?

A factory or industry cannot get GST registration on a residential property. In accordance with the GST Rules, one must submit a GST Registration application from the primary place of business.

Alternatives to the Registered Office Address of a Residence

There are other options if having a home address as the registered office address is not the best choice. These consist of the following:

Remote office address: 

A remote office address is a service that gives a physical address for a business. For people who don't want to use their home address, using this address as a registered office address may be a cost-effective choice.

Commercial office space:

Another choice for those who want to use a business address as their registered office address is to rent commercial office space. Although it might be more expensive, this alternative could give the company a more polished appearance.

Conclusion

Lastly, a home address is acceptable as a registered office address. Before making this choice, there are certain crucial aspects to consider. The use of a residential address as a registered office address should be considered in light of privacy issues, professionalism, and statutory requirements. Alternatives, such as a virtual office address or a business office space, are available if a residential address is not ideal. For more information, contact Lawgical India's experts.

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