When you start a business and register it as a limited company, you have several responsibilities you have to take care of. Among many other things there is the need to have a registered office for your company. The first question you will have is, “what is a registered office address?” Many people are not aware of this requirement but if you are to start a limited company or limited liability partnership, you can’t do that unless you have a registered office. Of course, most people would think that having their residential address registered as a registered office address would be fine, but they are unaware of the many disadvantages of doing that.
First thing, when you have a company you have to do a lot of correspondence. Running a company is not like sitting at your computer desk at home and providing freelance work. You are constantly being sent various documents by the government offices, tax collection offices, partners etc. It is not to say that you cannot use your residential address as registered office address but you would not want to do that because all your necessary documents will start landing in your house. In short, your work and business life will start to meddle into your personal life.
It is not that difficult to have a registered office if that’s what you are thinking. Your registered office can be in a completely different location than your company. There is no requirement for you to visit your registered office and so where it is located should not matter to you. However, it has to be within the same jurisdiction as your main workplace. All your public records have to contain your registered office address. Every document that comes in your name and leaves your business in the name of another entity will need to have your registered office address on it.
This should already give you a clear idea of why you would not want to have your residential address as your registered office address. Other than keeping your residential address private, there are reasons for keeping your registered office different. When you have your registered office registered it is best that you choose a well-known location for that purpose. It is because investors and other entities that could be of benefit to you would be impressed with an address that is located at a place that is considered a good place for business.
Some people would confuse registered office address with directors’ service address. However, the most important piece of information here is that you cannot have your registered office located globally whereas you can do that with directors’ service address. If within the same jurisdiction, a company can use both the address as one address. The main distinction here is that your directors’ service address is more personal to the director of the company whereas the registered office is more of a company address. Now, if you are interested in starting a limited company or a limited liability partnership company, make sure to invest some time and energy into getting a registered office address wisely.