Refusal of a direct debit by the landlord: what are the alternatives?

Can an entrepreneur domicile his business in his own home?

Legislation allows entrepreneurs to to domicile his business in his own homeunder certain conditions.

The case of the sole trader (EI)

Article L123-10 of the French Commercial Code authorizes a sole trader or micro-entrepreneur to domicile his business in his own home.

No legislative provision or contractual information should stand in the way.

The case of a company's legal representative

Article L123-11-1 of the French Commercial Code authorizes a legal entity legally representing a company to domicile its registered office on its premises. It may carry on business there in the absence of legal provisions or contractual prohibitions.

The tenant can domicile his business in a rented dwelling for a maximum period of five years. The rented apartment or house must be the entrepreneur's principal residence.

Inform the landlord of the property

The sole trader or the legal representative of a company must inform the landlord of his intention to domicile his business in the rented property. If the property is located in a condominium, the syndic must be contacted.

When can a landlord refuse a tenant's business address?

If you are a tenant and wish to domicile your company's head office in your own home, it is essential to obtain your landlord's permission.

Information in the lease

Renting a house or apartment involves signing a lease. This may include a prohibition on carrying out professional activities in the principal residence.

However, this clause in the lease is not inevitable. The tenant is entitled to domicile his business for a period not exceeding five years. The entrepreneur may not carry on business in the premises, nor receive customers there.

Provisions of the condominium by-laws

The condominium by-laws may prohibit you from carrying on a commercial activity.

In the event of violation, the syndicat de copropriété is entitled to take administrative action to enforce the regulations.

It's essential to inform the condominium manager of your intention to domicile your business in your home. We recommend that you do this by registered letter with acknowledgement of receipt (LRAR). If you own your principal residence in a condominium, you must take the same steps to inform your syndic.

What are the other restrictions on domiciling your business at home?

Domiciliating a company in your own home may involve other restrictions. SeDomicilier would like to draw your attention to town-planning regulations and the "habitation bourgeoise" clause.

Town planning rules

Local planning regulations may restrict the domiciliation of a business in the entrepreneur's home. When starting up your business, it is important to consult your local council to obtain a town planning certificate.

A residential dwelling can be converted into business premises on the basis of two steps:

• Applying for a change of use: this is governed by the provisions of the Building and Housing Code.
• Applying for a change of use: this involves consulting the town planning regulations and the local urban development plan (PLU).

The bourgeois dwelling clause

The "habitation bourgeoise" clause can be included in a rental lease or condominium by-law. It prohibits tenants from exercising a professional activity within their principal residence.

It is possible to obtain an exemption if your activity does not disturb the peace and quiet of the neighborhood. You must not receive customers or store goods in your home.

What are the disadvantages of domiciliation?

Choosing your home as your registered office has its drawbacks. Your home address is made public. Legal business information websites broadcast your company's address to Internet users.

Customers and service providers are likely to visit you to make enquiries or express their dissatisfaction.

By law, your company's registered office must be mentioned on the following documents:

• Social documents: employee employment contracts, collective bargaining agreements, internal regulations, pay slips, etc.
• Accounting documents: quotes, invoices, delivery notes, balance sheets, etc.
• Legal documents: articles of association, general meeting minutes, etc.

The public has many opportunities to find out the address of your registered office. If this is associated with your place of residence, the privacy of your loved ones may suffer.

What are the alternatives to domiciling your business in your own home?

Other domiciliation solutions exist for business creators. SeDomicilier invites you to discover them, with their advantages and disadvantages.

Choosing commercial premises

Sole traders and legal entities can opt to have their registered office located in a commercial building. This is an advantageous solution if you need a place to conduct your business and/or receive your customers. Make sure you select premises in an area where your business is likely to grow.

While commercial premises can be a real asset for your brand image, they do have one notable drawback: the cost of running them.

Costs are to be expected:

• monthly rents ;
• purchase of a business ;
• energy bills: electricity, gas, water ;
• layout and maintenance of premises, etc.

A domiciliation contract with a specialized company

A domiciliation company offers P.O. boxes to micro-enterprises and companies. It offers personalized support solutions. SeDomicilier offers its services to help you complete your business start-up and registration formalities.

You can choose between several options in your direct debit contract:

• receiving, scanning and forwarding mail ;
• telephone switchboard and physical reception ;
• legal advice ;
• assistance with administrative formalities, etc.

The manager of a micro-business or company can take advantage of a coworking space to work in synergy with other entrepreneurs. They can opt for a private office. Meeting rooms are available for receiving customers or colleagues.

A business domiciliation company like SeDomicilier offers lease contracts in business centers all over France. This is a powerful lever for your brand image. Choosing to domicile your business in a prestigious area is an asset. Your customers and service providers pay close attention to the location of your company's head office.

Domiciliating your business in your own home has economic advantages. A landlord or condominium manager may refuse to allow you to domicile your business in your own home. Choosing a domiciliation company allows you to take advantage of tailor-made services to improve your day-to-day life while developing your brand image.