Domiciliation of a company in your home: what are the conditions as a tenant?

Company domiciliation, definition :

This refers to your company's tax and administrative address, to which all your correspondence will be sent. It determines your company's registered office.

It also acts as a real "showcase" for your company, playing a strategic role as well as a practical one.

There are many different ways to domicile your company. For many, domiciliation at home seems the most practical solution. But what if you're just a tenant?

Legitimate doubts, which we'll try to answer as best we can in this article!

Regulations (what the law says)

According to articles L123-10 and L123-11-1 of the French Commercial Code: "Any legal entity is authorized to establish its registered office at the domicile of its legal representative and to carry on business there, unless otherwise provided by law or contract.

A few more details are required

In fact, the rented accommodation in question must be the principal residence of the company's legal representative, and the activity must be carried out solely by the occupants of the accommodation.

Then there are two distinct cases:

• Sole proprietorships or self-employed entrepreneurs: In the first case, domiciling your business in your own home does not, in principle, pose any problems, since domiciling a business in a "residential" rental property does not change the purpose of the property. The tenant can do so without notifying the landlord, provided there is no contractual or legislative clause to the contrary. Further still, if the company's activity is carried out solely outside the home, domiciliation is even possible where there is a provision prohibiting any company domiciliation in the home.
• Company: In the case of a company, the same provisions as above apply, with one proviso. If there is a contractual or legislative clause, the lessee may still domicile his company, but only for a maximum of 5 years. Should this be the case, the company representative must inform the lessor or the managing agent in writing of his or her intention prior to any registration or change of registration .

Conditions (the owner)

As mentioned above, a company wishing to register at the domicile of its legal representative, contrary to a contractual or legislative clause, must notify the owner in writing prior to any registration.

To this end, a letter must be drawn up and signed by the owner.

It should be noted that domiciling your business in your own home is a right, and requires only that you inform the landlord.

Even so, at the end of the 5-year period, the company will have to move, not forgetting to notify the Greffe du Tribunal de Commerce 3 months beforehand to avoid being struck off the Register of Commerce or the Trade Register. The next step will therefore be to consider a different type of domiciliation.

Alternatives (3 ways to domicile your business)

Finally, whether you have been domiciled in your own home for 5 years or you no longer wish to domicile your company in your own home, there are alternatives available to you:

• Commercial premises : you can rent commercial premises dedicated exclusively to your business. In this way, your private and professional lives are completely separate. However, commercial premises are a real investment, and a strategic choice that can be a bad one if you don't have a prestigious address.
• A business incubator: once again, a business incubator can help you separate your private and professional life, offering real support and the opportunity to create a network that could be useful to your business. However, sharing premises and not having a choice of address can still impact on your corporate image.
• Company domiciliation: this last solution appears to be an alternative worth exploring. In fact, this option saves you the cost of investing in premises, lets you choose your registered address from a number of locations and positions you strategically, while allowing you to work from wherever you like.

There are a number of alternative options available to you, so think again!

In conclusion, you need to pay close attention to the legislative and contractual conditions of your lease to avoid unpleasant surprises.

But you also need to keep on top of the imperative administrative procedures so that you can quickly focus on the real challenge: growing your business!