Registration of a business is very tough indeed worth putting in time for choosing a correct address as the Company’s registered office. The entire procedure of company’s registration, as well as fulfilling governmental requirements, involves a huge amount of finance and procurement of a commercial space is an add-on to the cost.
For sole proprietorship firm or small-scale artisans, craftsman, online-service providers, dealers, a small office with basic infrastructure is sufficient. They may also easily use their residential areas. However, the question arises, in case of a start-up or an incorporation, where the fund is already a constraint.
What is a registered office?
A registered office is an official address of any legal entity i.e. an address for correspondence for an incorporated company, an LPP, an association, a sole proprietorship firm etc.
Why do we need a registered office?
A registered office address is very necessary for the course of business. Once the business is commenced, all communications are made through the registered office. Apart from this, the address provided is the part of public record and is displayed on the portal of the Ministry of Corporate Affairs for the master data of the company.
Whether the residential address can be provided as the Company’s registered office address?
Like any other country, The Ministry of Corporate Affairs in India allows the residential address to be used as the company’s registered address. Thus, any address can be provided as the registered address for the purposes of incorporation.
What are the required documents in case one uses his residential address as the company’s registered office?
While making an application, the promoters are required to provide an address of the registered office along with the address proof including the utility bill not being older than two months. A NOC is also required from the owner if the place is on rent.
Where the residential address is used, the promoters have to give valid documents to prove the ownership of their house.
What are the advantages of having your home address as the registered address for your company?
Often promoters choose their residential address as their company’s office address as it is generally permanent in nature. This also helps to avoid long procedures and documentation which are required soon after incorporation.
While choosing the residential address as the place of business, one can rely upon the following benefits:
- It reduces the overhead costs of maintenance in the course of business,
- It is more viable and reachable,
- Any correspondence by the customers or otherwise can reach your doorstep,
- It helps in providing a 24X7 available workspace,
- One can expand his business along with giving time to family,
- The option of changing the place of business is always possible without changing the registered office.
What are the drawbacks of choosing residential address as the company’s registered office?
An office at a reputed place often boosts the company’s cooperate image and help to make an enduring impact on prospective clients and business partners.
Thus, a home address can have the following drawbacks:
- It does not give the best impression,
- It can lead to infringement of privacy as the address is put on public access,
- Having your office at home can lead to overlapping of corporate life and private life,
- In case of any dispute, the creditors may end up coming to your doorstep,
- Your address can often be reviewed by company archives.