Can I use my Residential place as Registered Office Address?
When we talk about commencement and registration of the Business, the place of business is always an associated question. The procurement of commercial space during Business Registration with Government is always an add-on cost for small businesses and service providers apart from Incorporation cost.
While commencing the business, fund is usually a constraint for the start-ups. Therefore, to save money, founders always look forward to avoid the burdensome cost of procuring commercial place of business. The service providers, artists, craftsmen and dealers on online platform do not require such place of Business as their business operations can be handled easily within a little space or only through basic infrastructure. Therefore, the requirement to procure any office is only an overhead for such businessmen and service providers.
A sole proprietorship firm or any unincorporated business can easily commence business at the residential address. However, the question arises while incorporation and registration of Company and LLP. Know here the reason and pros and cons of using Residential Address as Registered Office Address.
What is Registered Office?
A registered office is the official address of an incorporated company, Limited Liability Partnership, association or any other legal entity. The address provided as Registered Office is the part of the public record and is displayed on the portal of Ministry of Corporate Affairs for Master Data of Company/ LLP.
For making an application for LLP or company registration in India, the promoters are required to provide the address of 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.
Can a company or an LLP be registered at a residential address?
Yes, any address can be provided as the registered office address for this purpose. Keeping the infrastructural needs in mind, if the residential place is a convenient option for you, it can work as registered address. However, as stated above, the consent of the owner is must for the using the property for business purpose. Alike any other place, ministry permits to take registration of residential address as registered office address. The registered office can be changed as and when required.
For incorporation application, the promoters can obtain registration at the residential place and subsequently establish other branch office as and when required. The company/LLP can operate from the place/office other than the registered office.
Most promoters choose the residence as registered office address in order to provide an address which is permanent in nature and to avoid the tedious procedure of change of registered office address after incorporation. Here, the temporary change of place of business is handled wisely until finding the suitable place of the business.
The address proof for business place and other required documents are furnished with incorporation application. With respect to address office latest utility bill, NOC from owner and rent agreement, if any, are submitted. In the NOC or rent agreement, the permission to use the address for registrations like GST or Shop & Establishment registration can be provided for convenience on part of promoters.
Following are the pointer to be kept in mind for choosing residence as place of business:
- This will not cost the promoters a lot of money and will reduce the overhead during the operations of Business.
- Any correspondence addressed to the company will be directly received by the authorised person, which will make the work easier. However, these days, communication happens only through mail.
- You may change the place of Business as and when required without change of registered office address and getting into such tedious procedure of change of office within the same city or outside the State.
- The registration under GST or any other taxation registration can be obtained in the same place considering it as place of business. Further, the one can also provide any branch office for registration under taxation policy.
- The address will be open for public access. This may lead to infringement of privacy of the directors or promoters or partners as the case may be.
- Registration under Shop & Establishment Act can be obtained even at the place of residence when required along with any other registration required.
- Once the place is registered for business purpose under Shop & Establishment Act of concerned State, the place will be treated as commercial place and appropriate rate of taxes will be levied on concerned address.
- Providing a residential address may not act as impactful as commercial place of business and be less trust worthy for the clients and creditors of the organisation.
Today’s scenario favours entrepreneurs and businessmen by permitting the residential place as Registered Office while incorporation of company or incorporation of LLP by providing required documents with the help and consultation of professionals. Whether to choose residential address as registered office is complete desertion of co-founders and depends on the nature of business as well as activities. However, it is always an cost-effective option to be considered while establishment of Business.
CS Prachi Prajapati
Company Secretary with a forte in content writing! Started as a trainee, she is now leading as a Content Writer and a Product Developer on technical hand of LegalWiz.in. The author finds her prospect to carve out a valuable position in Legal and Secretarial field.
thats good information to us if started new business
Can we put the company board as well in residential address? Can it be removed or it is mandatory requirement as some apts doesn’t allow the same.
It is mandatory to have a board containing the name and address of registered office of the company outside every office from where the business is carried on.
1)It was a great information. I just need one small clarity. If a residential place has to be the registered office and i am a tenant, my owner has given me NOC as i treat this as a office and i am only 2 member managed trader. Is it mandatory to have a commercial meter and such things done or only NOC is enough?
2)Place of Business vs Registered office. Meaning can I have a registered office and operate ie do business at different place. If i am a small trader that would be covenant for me to register a office at a place and do business in other area.
Kindly help me with this query
Thanks for your support Ajith. Please review below provided notes on your queries.
1) If the place is registered for business purpose under Shop & Establishment Act of concerned State, the place will be treated as commercial place and appropriate rate of taxes will be levied on concerned address.
2) Yes, you can have your residentail property as registered office for all compliace registration and have different place of business. The promoters can obtain registration at the residential place and subsequently establish other branch office as and when required. The company/LLP can operate from the place/office other than the registered office.
Hope this helps.
Can we use residential address to register trademark?
And can we amend address of registered trademark after some time?
Kindly help me with thus queries.
If you have a residential address as your business address then, you can register a trademark with the same address. The address can be amended as and when you needed.
In case of recoveries does the registered office address also in danger if we provide house address as office
In case of recoveries you will receive all the comminication on your registered office, however only assets of company will be taken into account. And if registered office is not an asset of company then the same will not be in any danger. Hope this helps.
Hi, could elaborate more on the taxation mentioned in the third point of the negatives.
As per the Shop and Establishment Act of the concerned state, residential property has fewer tax rates than a commercial place.
I am a tenant offering professional services (consultancy) and planning to use the residential rented place place as registered office. Will the nature of business be treated as commercial and attract taxes accordingly as for commercial establishments.
Yes definitely, you can use a residential address to register the company. The place then will be considered as a commercial place and will attract the taxes as applies to commercial establishments.
Hi, I would like to get the below things clarified.
I am going to start a online clothing store and to create a website also.
My question is, i have my own house which is in my wife’s name. Do i need any NOC to register my company name in my home address.
If i register my company with my home address, what are the taxes that i need pay.
Will my electric bill be charged as per commercial standard??
As you are planning to start a business in your name and the house is in your wife’s name, you need a NOC.
As your business would be online, if you are only selling your own products online and if turnover is more than INR. 40 lakhs or you want to claim ITC you need to register under GST.
But if you will also be selling other vendors’ products online through your site then you have to apply for GST registration.
Moreover, you will be charged as per the commercial standards only.
For further assistance, you can directly contact us on 1800 313 4151 or email us at email@example.com
Excellent article but I’m still not clear on few things. Can you help me out
1. Do we need to register under shop & establishment act if I want to start an e-commerce business as a sole proprietor & sell products with product packaging under my own brand.
2. I’m planning to use my relatives address in other state as a registered office place and do operations from other state where I’m currently staying. Is that okay? Also, as I don’t want to register under shop & establishment act, I belive it will not be treated as commercial place.
3. As my products will be shipping to any state on eCommerce. What license do I need or GST should be just fine.
Much appreciated mam, if you could help me out.
1. Firstly, Yes, you need a shop and establishment certificate to carry out your business operations legally in the particular state.
2. Even, if you are planning to operate your business from a different state, your registered office that is your relative place must be considered a commercial place. Legally it is not allowed to start your business and not registered under shop and establishment act.
3. You must go for GST, MSME and Shop and establishment registration.
For further assistance, you can contact us on 1800 313 4151 or email us at firstname.lastname@example.org
I am making traditional paintings and selling them. Can I give my residential address for registration purposes and register my firm under a brand name initially. And in future can I change my office address in case I start an art firm in future.?
Yes, you can use a residential address and later on, you can change your office address
I have just incorporated a private limited company at my residensial address (registered addrss) in bangalore but have not started any work.
Still my home address shall be considered as commercial space? I have not taken the GST No. also and do not have any plan to start operation/business at least for another 1-2 years.
In such case, you must fulfil the mandatory compliances even if you don’t start the business operations. Also, your residential address will be considered as a commercial place.
If I register company on a residential address will whole building will be treated as commerical place or just the part I am renting.
As our building is a single owner, and there are 2 tenants other me and I want to register my company. Will whole building will be commercial or only place rented out to me will be commercial.
Hi Abhinav, in case you are talking about one residential flat or house, then the entire house will be treated as commercial place post company registration.
While Incorporation of an entity, you will require to provide the Utility Bill and MCA will be considering the address given in the utility bill for Registered Office Address details.
Hence, the address available on utility bill will be considered by government departments for their records.
I request for following clarification.
A. Can we have multiple companies registered at the same commercial address.
B. In case the registered office is on tenancy basis, would it be required to have an exclusive contract for use of place and which can not be shared..
Can i use Electricity bill of my fathers name for registering of of private limited co
Hello, I am from Jodhpur, Rajasthan.
I am incorporating PVT LTD and showing my house as the official address to avoid further expenditure on papers for a temporary basis, so the question is after taking the shops & establishment certificate will the status of my house change, I mean Residential to Commercial?
Will the electricity bill & water bill be charged at the commercial price rate?
However, I have made the rent deed & NOC, and in those papers, we showed clearly one room as my office only, until we raise any funds.
Please let me know of any suggestions from your side earliest.
Hi Neeraj, yes that is indeed how it works. Once you use your property as a commercial property, the rates of commercial properties will apply, be it for electricity, water bill or taxation purposes. Please reach out to us at legalwiz.in for any further help
Very good article , i need your help to understand that if i am owner of residence flat and i have given my flat address as Registered office address to my one of friend and he has obtained GST and PAN on this address for his private limited company.
now i want to know whether can i have right to cancel GST and PAN registration which my friend has obtained on my residence address? and what is process ?
Please guide me
Hi Mithun, no you cannot cancel their GST and PAN registration, however, you can send a notice to the GST and PAN authorities stating that your residence is not associated with your friend, and tney will take the necessary action. Thanks!
I am incorporating PVT LTD and showing my house as the official address to avoid further expenditure on papers for a temporary basis.Will the electricity bill & water bill be charged at the commercial price rate? or Do we need to register under shop & establishment .pl suggest
Hi, yes, if you use your house as your official address for your company, your water and electricity bill will be charged at the commercial price rate. No need to register under Shop and Establishment act
I would like to register my online educational institution as pvt company. I have one cofounder. Would like to know if I can use my home address for registration, we are in Tamilnadu so what would be the act we would come under. will it be commercial eb bill? We dont need physical space right now to operate. Kindly guide
Hi, yes, You can use your home address for registration. If you use your house as your official address for your company, your water and electricity bills will be charged at the commercial price rate. Additionally, all companies in India come under the Companies Act, 2013 irrespective of the state.