LLPTaxation

Can I register the LLP Myself at My Home Address?

You can register your LLP at your residential address. However, you must be aware that there are certain risks associated with registering your LLP at your residence.

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Entrepreneurship is all about starting a new business, and you think about registering your business. You always wonder what the location of your business is. You should look for a commercial space for business commencement. Will the small set-up and service provided with incorporation costs will cost you a fortune?

Finance plays a crucial role in starting up a business, and usually, you face constraints during the start. In order to save money, founders of the businesses always look for a cheat escape of unburdening the cost of commercial space and plan to start their business registry from home.

Artists and digital marketers, for example, do not require a large commercial space for operations and can run their businesses from a small, decent location with basic infrastructure. Thus, the necessity to procure any office is only overhead for such entrepreneurs and service providers.

A sole proprietorship business can quickly begin operations at the residential address. However, the issue arises during the incorporation and registration of the Company and LLP. Learn about the benefits and drawbacks of using a residential address as your registered office address.

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What Is a Registered Office?

A registered address is the official address of a corporation, a limited liability partnership, an association, or any other legal entity. The address provided as the registered office is a public record. It is showcased on the Ministry of Corporate Affairs portal for master data of the company or LLP.

When applying for an LLP or business registration in India, the promoters must provide the address of the registered office and address proof such as a utility bill that is no more than two months old and a NOC from the owner of the property.

Can a company or an LLP be registered at a residential address?

For this purpose, any address can be used as the registered office. Keeping in mind the infrastructure requirements, if the residential location is a suitable option for you, it can serve as your registered address. However, as previously stated, the owner’s permission is required before using the property for commercial purposes. Like any other place, the ministry allows the registration of a residential address as a registered office address. The registered office can be changed as needed.

The organizers can obtain registration at their residence for incorporation applications and then establish other branch offices as needed. The company/LLP may conduct business from a location other than the business address.

Most promoters choose their residence as the office address in order to provide a permanent address and avoid the time-consuming process of changing the registered office address after incorporation. The momentary change of place of business is managed wisely in this case until the business finds a suitable location.

The incorporation application includes address proof for the business location and other required documents. Regarding the office’s address, the most recent utility bill, NOC from the owner, and, if applicable, the rent agreement are submitted. For the convenience of the promoters, permission to use the address for registrations such as GST or shop & establishment registration can be provided in the NOC or rent agreement.

The Following Are Some Considerations to Make When Selecting a Residence as a Place of Business:

Positives

  • This will not cost the business owner much money and will minimise the expense during company operations
  • Any communications addressed to the business will be received directly by the authorised personnel, making the job easier
  • Nowadays, however, all communication is done via mail
  • You may change the location of your business as needed, without changing your registered office address or going through the time-consuming process of changing offices in the same city or outside of the state
  • Registration under GST or any other taxes can be obtained in the same location as the place of business. Similarly, one can provide any branch for taxation policy registration.

Negatives

  • The address will be available to the public. This may result in an invasion of the privacy of the directors, promoters, or partners, as the case may be
  • When necessary, registration under the Shops and Establishments Act can be acquired at the place of residence, in addition to any other required registration
  • Once a location is registered for business purposes under the Shop and Establishment Act of the relevant state, it is considered a commercial location, and the appropriate rate of taxes is levied on the address
  • Providing a domicile may not have the same impact as a commercial address and may be less trustworthy to the organisation’s clients and creditors.

Conclusion:

Today’s scenario benefits entrepreneurs and business owners by allowing a residential address to be used as the registered office. It is submitting the necessary documents with the assistance and consultation of experts. Choosing a residential address as the registered office is a complete abandonment of co-founders and depends on the nature of the business and its activities. It is, however, always a cost-effective option to consider when starting a business.

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