Here's a common misconception: that «business domiciliation » and « domiciliation for individuals » are similar concepts. Think again! In reality, many differences separate them.
Domiciliation for individuals is for those wanting to outsource the management of their personal mail. This is usually referred to as a "domiciliation box".
Business domiciliation, like obtaining a registered office, is the first step in setting up your business. It designates the official business address where all your mail is sent. It's commonly used by entrepreneurs who want to keep their personal and professional addresses separate, while also taking advantage of many additional services such as mail management.
There are many other differences, and we will detail them more fully throughout this article. Follow the guide!
Business domiciliation is a service designed to separate your registered office address from your actual place of business. It is offered by a domiciliation company. In short, it's the shop window for your company. It is the first formality to be completed when setting up a business and concerns entrepreneurs, associations and the self-employed alike.
Paying special attention to the choice of your registered office is one of the keys to your success, as this address will appear on all your official documents (invoices, quotes, purchase orders, etc.).
It also determines the company's nationality, its country of taxation, and the competent jurisdictions in the event of a dispute.
Business address providers offer entrepreneurs the chance to benefit from a range of additional services. They're way more than just a mailbox; you can enjoy a wide range of services to outsource time-consuming, low-value tasks.
In some situations, domiciling in a ZFU or ZFU-TE can reduce your tax. Some areas are partially or fully exempt from paying the CFE (Contribution Foncière des Entreprises - Business Property Contribution). Also, did you know that it is lower in Paris compared to the national average?
You'll get immediately visible results, with real productivity gains and an improvement in your corporate image.
Business address providers don't just offer their services to companies.
Individuals are also concerned, but do not benefit from exactly the same offers
For many people, a domiciliation address allows them to meet an administrative obligation that every resident must have a receiving address to receive administrative, legal and tax documents, etc.
What's the difference compared to a personal address? For example, you can't use your registered address as proof of address. It also meets a requirement for confidentiality and discretion for some people.
The registered address provided by a domiciliation company has little in common with a simple PO box.
First of all, because it is managed directly by a domiciliation center and not by La Poste, but also because a domiciliation box offers many more services than a simple mail forwarding service.
Thus, with a domiciliation box, it will be possible for you to have your mail forwarded without time limit (except for the one mentioned in your contract) and you can choose your address from a wide range of prestigious and valuable locations.
You can also sign up for extra services, like a telephone answering service to forward your calls or take messages when you're not available.
The most common alternative to business domiciliation is choosing the entrepreneur's home address as the registered office. But, this is actually a restrictive solution because it forces you to publicly disclose your home address on all your official documents, online directories, your website, etc.
Many business owners see this as a threat to their privacy.
Setting up your company's address lets you enjoy the perks of working from home while using a different address for your registered office.
Finally, renting commercial premises comes with many financial constraints, including paying a deposit, monthly rent, and providing numerous guarantees. Many growing companies prefer to use their resources differently and maintain greater flexibility.
Business domiciliation and domiciliation for individuals are two different services that meet two different needs. They don't target the same people, and they don't offer the same products.
However, they still provide valuable services and attract the interest of many individuals and business leaders! So, what are you waiting for to take the plunge?
Written by our expert Paul LASBARRERES-CANDAU
June 17, 2019
