Theregistered address is a key element in the identity of self-employed entrepreneurs. It determines the company's nationality, its country of taxation, and the competent courts in the event of a dispute. This question should not be taken lightly.
The law also allows any auto-entrepreneur to change their registered address at any time during their existence.
Here's an overview of the solutions available to help you make the best possible choice for your company's domicile
French law allows auto-entrepreneurs to use their personal home as their registered office, unless their residential lease forbids it. The co-ownership regulations of your building may also object.
If this is not the case, you mustinform the owner, lessor or syndic of your decision to domicile your company at your home. In this case, no address other than that of the managing director may be used as the business address.
In towns with more than 200,000 inhabitants, as well as in the Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne regions, there are a number of constraints governing the domiciliation of a business in a residential building: if the activity is carried out on the first floor, it must not cause any disorder or danger within the building; if it is carried out on the first floor, you may not receive customers or merchandise.
This option is often preferred by auto-entrepreneurs, as it limits the costs incurred, especially during the start-up phase, especially as part of the expenses generated in your home as a result of running your business can be covered by your company.
In reality, the many disadvantages of this solution are often overlooked.
In fact, the law imposes a 5-year time limit on using your personal home as your registered office. You will also be liable for the CFE, in the same way as companies owning commercial premises, from your second year in business.
Finally, this solution exposes your private life to the eyes of all your customers and partners, as well as on the web, because your registered address must be mentioned on all your official documents, such as your invoices!
All auto-entrepreneurs have the option ofbuying or renting commercial premises to house their business. This solution is particularly useful when the company needs specific premises to house its employees, or a production activity such as a workshop.
However, an unattractive address is likely to damage your image, despite the savings you make. Fortunately, there is a solution: the domiciliation company!
Domiciliation companies provide self-employed entrepreneurs with a prestigious address to enhance their credibility with customers and other business partners.
Using a domiciliation company does not prevent you from carrying on your business in another location, such as commercial premises in a less prestigious geographical area, or from your home!
In order to make the right choice, check that the domiciliation company is approved by the Préfet of the département or the Préfet de Police and registered with the RCS.
All auto-entrepreneurs must inform their Centre des Formalités des Entreprises if they use this solution.
The extra credibility provided by the prestige of the address offered directly encourages the confidence of investors and prospects in the growth of your business. What's more, it's a low-cost solution, starting with a simple address with mail forwarding for €20 a month.
Existing offers have developed "à la carte" services to suit all budgets, including secretarial services, telephone hotlines, legal assistance and meeting facilities.
Keeping accounting and administrative documents is one of the legal obligations that all domiciliation companies must provide to their customers.
The more prestigious the address and the more services, the higher the price.
The domiciliation contract must be registered with the RCS of the domiciled party
Business incubators are becoming increasingly popular, especially for start-ups. They are large-scale premises housing the activities of several companies, whether self-employed or not, in order to pool services and means of production.
It also breaks the solitude of the entrepreneur.
Many business incubators offer shared training and support services provided by experts to advise self-entrepreneurs. By pooling infrastructure and running costs, incubators offer an attractive, low-cost alternative.
Each has meeting rooms and a secretariat. Created to accommodate start-ups, costs are moderate, at around €25 per square meter per month, or €250 for a 10-square-meter space.
As with domiciliation companies, rates vary according to the premises and services required.
However, contracts are never long-term, often lasting between two and three years.
Choosing the rightaddress for your company is no small matter, especially as its image and credibility with investors depend on it. A prestigious domiciliation address offers so many assets to encourage the development of your business.
Above all, it protects your privacy by avoiding public disclosure of your personal address.
Written by our expert Paul LASBARRERES-CANDAU
February 21, 2018
