When it comes to the start-up and registration of a business, the location of the firm is always a factor. The purchase of commercial premises through the government's Business Registration process is always an extra cost for small firms. Funding is frequently a restriction for start-ups when it comes to starting a firm. As a result, in order to save money, entrepreneurs want to avoid the high expense of acquiring a commercial location.
Any unincorporated business, such as a sole proprietorship, can readily start doing business at the residential address. However, the issue arises with the formation and registration of a company and a limited liability partnership (LLP). Learn why you should use your home address as your registered office address, as well as the benefits and drawbacks.
An incorporated business, Limited Liability Partnership, organisation, or any other legal entity’s registered office is its official address. The is part of the public record and is visible on the Ministry of Corporate Affairs’ Master Data of Company/LLP site.
For making an application for LLP or company registration in India, the promoters are required to provide the address of the Registered Office along with the address proof including the utility bill not being older than 2 months along with NOC from the owner of the place.
What is a Registered Office?
A registered office is a pivotal component of a company’s legal structure. It serves as the official address where all official communications, notices, and legal documents are sent by government authorities, regulatory bodies, and other entities. The registered office plays a crucial role in establishing a company’s identity and legal presence in a specific jurisdiction.
Documents Required to Register Home Address as Business Address
To register a home address as a business address in India, you will typically need the following documents:
Latest Utility Bills: Provide copies of recent utility bills such as electricity, water, telephone, or gas bills that clearly show your name and the residential address you intend to use as the business address. These bills serve as proof of residence at the specified address.
Rent Agreement (if applicable): If you are renting the property where your business will be located, include a copy of the rent agreement. The rent agreement should outline the terms and conditions of the lease, including the duration and rent amount.
No Objection Certificate (NOC) from the Owner (if applicable): If you do not own the property but have permission from the property owner or landlord to use it as a business address, you should obtain a No Objection Certificate (NOC). This document confirms the owner’s consent for business use.
Other Documents Required for Company Registration in India: Depending on the legal structure of your business and the specific requirements of the Registrar of Companies (RoC) in India, you may need to submit additional documents for company registration.
These documents may include:
- PAN Card: Permanent Account Number (PAN) card of the company and its directors/partners.
- Aadhaar Card: Aadhaar cards of the company’s directors/partners for identity verification.
- Digital Signature Certificate (DSC): DSCs for signing electronic documents during the registration process.
- Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the company’s objectives, rules, and regulations.
- Director Identification Number (DIN): DIN for the directors of the company.
- Identity and Address Proof: Copies of identity and address proofs of directors/partners.
It’s important to consult with a legal advisor from Vakilsearch who specializes in company registration to ensure that you have all the necessary documents and meet the requirements of the Registrar of Companies in India.
Can a Company or LLP Be Based at a Residential Address
Yes, any address might be used as the office address. If the home location is a handy alternative for you and meets your infrastructural demands, it might serve as your registered address. However, as previously indicated, the owner’s permission is required before the property may be used for business purposes.
The ministry, like any other location, allows the registration of a residential address as a office address. The registered office can be change in address whenever it is necessary.
The promoters can get registration at their residence for incorporation purposes, and then create other branch offices as needed. The company/LLP can do business from a location other than its registered office.
The majority of promoters pick their home as the registered office location in order to give a permanent address and avoid the time-consuming process of changing the office address after incorporation. The temporary shift of business location is managed carefully here till a suitable location is found.
The proof of address for the business location, as well as other needed papers, are submitted with the incorporation application. In regards to the address office, the most recent utility bill, NOC from the owner, and, if applicable, a rent agreement are all presented.
Permission to use the address for registrations such as GST or Shop & Establishment registration might be offered in the NOC or leasing agreement for promoters’ convenience.
Positives
- This will not be expensive for the promoters and will decrease overhead during business operations.
- Any letter sent to the firm will be received immediately by the authorised individual, making work easier. Nowadays, however, contact is limited to mail.
- You may alter the location of your business as needed without having to modify your office address or go through the time-consuming process of changing offices within the same city or outside the state.
- Registration for GST or any other taxation can be acquired at the same location if it is considered a place of business. Furthermore, any branch office can be provided for taxation policy registration.
Negatives
- The address will be accessible to the general public. This may intrude on the privacy of the directors, promoters, or partners, depending on the situation.
- When necessary, registration under the Shop and Establishment Act, as well as any other compulsory registration, can be acquired at the place of residency.
- Once a location is registered for business purposes under the Shop and Establishment Act of the relevant state, it is recognised as a commercial location, and the appropriate rate of taxes is collected on the address.
- Providing a domestic address may not have the same impact as a commercial address, and it may be less trustworthy to clients and creditors.
What is proof of the registered office address of a company?
Proof of the registered office address typically includes documents such as utility bills, rental agreements, property ownership documents, or a No Objection Certificate (NOC) from the property owner or landlord.
How Can we get the GST number on Residential Addresses?
To obtain a Goods and Services Tax (GST) number using a residential address, you need to apply for GST registration and provide the residential address as your principal place of business. The application process varies by jurisdiction, and you may need to provide additional documentation to support your registration. For assistance, reach out to our GST experts right away!
How can the principal place of business and the registered office be different?
The principal place of business and the registered office can be different if allowed by local regulations and the legal structure of the business. In some cases, businesses may choose a separate location for their primary operations while maintaining a registered office for legal and administrative purposes.
What is the difference between a registered office and a corporate office?
A registered office is a legal requirement and serves as the official address for receiving legal and administrative correspondence. In contrast, a corporate office is a physical location where a company conducts its day-to-day operations, management, and business activities.
Conclusion
Today’s scenario benefits entrepreneurs and businesspeople by allowing them to use their home as their registered office when forming a company or forming an LLP by supplying the needed documentation with the assistance and counsel of specialists.
Choosing a residential address as the registered office is a total abandonment of the co-founders and is dependent on the nature of the business and operations. It is, however, always a cost-effective choice to consider when starting a business.
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