There are several types of domiciliation :
- at your address,
- in rented or sublet commercial or professional premises,
- in an innovation centre or business incubator,
- in a business centre,
- or via a domiciliation company that acts as a letterbox.
Domiciliation does not mean that it is the company’s place of business. While they may be the same, this is not necessarily always the case, particularly in the case of choosing a domiciliation company.
Domiciliation of your company: at your address?
Benefits
Domiciling the company in your own home can be worthwhile. In addition to the speed of this solution and the ease with which you can manage your day-to-day organisation, it will help you minimise the cost of setting up your business.
Before you can set up your business in your own home and carry out professional activities there, you may need to obtain prior authorisation, particularly from the landlord or condominium association, where applicable. What’s more, in principle, a home is intended for residential use and you cannot normally carry on a professional activity in it (to do so, you would have to apply for a change of use). In most cases, however, prior authorisation is not required. Contact your local town hall to find out what rules apply in your area.
Drawbacks
While domiciling your business at home has its advantages, particularly in terms of flexibility and organisation, you should not lose sight of the fact that it also entails some constraints: think of the implications in terms of the division between private and professional life which can be difficult to respect, especially if you have to take on new staff, receive customers, store goods and so on.
Of course, if you change your place of residence (moving your main residence as a result of a divorce in which your former spouse is given the home in which your company is domiciled, etc.), remember to complete all the necessary formalities to transfer your company’s registered office.
Company domiciliation: through a domiciliation contract
A domiciliation company will provide you with a letterbox. If you opt for this type of domiciliation, verify that it has been approved by the Prefecture and registered with the Trade and Companies Register.
When you apply to register your company, you must present the domiciliation contract you have signed.
Under the domiciliation contract, you are called the domiciled party and the domiciliation company is called the domiciliation agent. The contract must be in writing and comply with a number of conditions, in particular:
- a period of 3 months, renewable by tacit agreement;
- an obligation to provide premises with a room capable of ensuring the confidentiality necessary for the operation of the management bodies and allowing these bodies to meet regularly (the premises must also allow the books, registers and documents required by law and the regulations to be kept, preserved and consulted);
- an obligation from your end to use the premises exclusively as the company’s registered office;
- an obligation to inform the domiciliation agent of any changes concerning your company’s activity or legal form;
- an obligation to authorise the domiciliation agent to receive all notices on your behalf;
- an obligation on the company to inform the Registrar of the Court of the termination of the domiciliation on expiry of the contract or on termination.
If the company that domiciles you is not the owner, it must have the written agreement of the lessor.
Domiciliation offers the benefit of being able to set up at a lower cost, ideal for reducing fixed costs and for companies looking for flexibility without having to sign a commercial lease.
Would you like to enter the French market through domiciliation? As part of our support services, we offer domiciliation in our dedicated structure.