The legal address of a company is not just an abstract concept but an important element of business activity — the legal and commercial sides of the work. The legal address is the official location of the company for receiving correspondence, notifications from government agencies and other official documents. Choosing the correct legal address can significantly impact the company’s reputation, registration, and interaction with business partners and government agencies. In this article, we will look at a legal address, its main functions, and how to choose it correctly for your organization.
What is the Company’s Legal address?
The legal address of a company is where the permanent management body of the company or its head is located. The legal address is the company’s location, indicated in the Unified State Register of Legal Entities and Individual Entrepreneurs (USR). In practice, the company’s office or production is usually located at the legal address if the company does not have a separate office and the management is in the production room. Except for the management body, production sites, warehouses, and other company divisions may be located at other addresses. The company’s legal address cannot be residential premises (except for a private unitary enterprise, which we describe below and a peasant farm).
The legal address is included in the articles of association, which are submitted to the registration authority when registering the company. As part of the legal address in the charter, specify the territorial unit (region, district of the country), locality (city, village, village), street name, house number, apartment, other premises, and office number.
Choosing a Legal Address and State Registration of the Company
The choice of legal address depends on which territorial registration authority you must apply to for state company registration. To include a legal address in the company’s charter, you will need a letter of guarantee from the premises owner in which the company, which has not yet been registered, plans to be located.
In the application for state registration of the company, which is submitted to the registration authority, about the legal address, they write:
- Postal code.
- The region of the country, the district, the village council (if any).
- The name of the locality.
- The name of the street (lane, avenue, other unit of urban space)
- House number, building (if any).
- Type of room (office, apartment, room) and room number.
- Type of room (residential or non-residential).
After the company’s state registration, the registering authority transmits information about the legal address to the tax inspectorate, the Social Protection Fund, and Belgosstrakh for inclusion in the Unified State Register of Legal Entities and Individual Entrepreneurs (USR). This way, the legal address becomes the main address companies send official documents to.
How to Choose a Room for the Сompany’s Legal Address
When selecting a room for the company’s legal address, we recommend following the following steps:
Step 1. Determine the Requirements for the Room
Make sure that the room meets the legal requirements.
Ensure you have access to the necessary services (electricity, water, Internet, air conditioning, cleaning, subway, parking, elevators and others).
Step 2. Select a Location
Consider areas with good infrastructure and transport accessibility.
Make sure that the area matches your company’s profile.
Find the owners of the premises you are interested in in the area and negotiate with them about renting or buying an office.
Step 3. Checking the Documentation
Ensure the premises owner is ready to provide documents confirming the right to rent or ownership.
Step 4. Estimate the Rental Price
Compare rental prices in different areas and choose the best option regarding the price-quality ratio.
Step 5. Consult with a Lawyer
Discuss the legal address registration issues with a lawyer to avoid possible legal problems.
Step 6. Sign the Contract or Receive a Letter of Guarantee If the Company is Not Registered Yet
After selecting a room and checking all the documents, prepare and sign the necessary documents.
Step 7. Register a Legal Address
After obtaining the rights to the premises, register it with the relevant authorities as your company’s legal address.
Recommendations
- Think about sharing offices (some coworking sites provide a legal address).
- The legal address must be the address of a real place, even if the company uses a virtual office.
- Check the reviews about the owners or managers of the premises where you plan to register a legal address.
- You can use the services of companies that rent a legal address and receipt of correspondence.
Why is it important to choose the correct legal address
Choosing a company’s legal address is important for several reasons:
1. Registration and Legitimacy
The legal address is a mandatory attribute when registering a company. It must comply with legal requirements. Otherwise, problems may arise with the legitimacy of the business, which may lead to refusal of registration or sanctions from the tax authorities. The inspection authorities should have easy access to the premises at the legal address.
2. Receiving Correspondence
All official documents, notifications and requests from government agencies, including tax inspections and judicial authorities, are sent to the legal address. An incorrect address may result in the company not receiving important documents, which may entail financial and legal consequences.
3. Reputation and Trust
An address in a prestigious area that coincides with the actual location of the company’s office can enhance the company’s image and create a positive impression among customers and partners. It can also affect a company’s perception of itself in the market and its competitiveness.
4. Tax and Legal Aspects
Tax rates and legal requirements may vary depending on the chosen address. For example, some regions may offer tax breaks for new companies or startups, which may be important for business. Companies registered in rural areas of Belarus have tax benefits.
5. Court Proceedings
The legal address is where court documents are sent in lawsuits. An incorrect address or lack of an address can lead to fines and difficulties in conducting business in court.
6. Accessibility and Convenience
Choosing an address should also consider the convenience for employees and customers. Having an office in an affordable and convenient location can improve the internal organization of work and increase customer satisfaction.
Thus, choosing the correct legal address is a strategically important decision that requires careful analysis and consideration of many factors.
The Legal Address of a Private Unitary Enterprise
A private unitary enterprise, which an individual owner opens, may be located at the place of residence of this individual when the person is the owner of the residential premises. It will also be necessary to obtain the consent of the other owners of this housing (if any) and all adult family members of the owner (and family members of other owners). The owner of the apartment, who wants to register a private company at the address of the apartment, must permanently reside in this room.
When the owner’s residence becomes the legal address of a private company, he usually pays utility bills at the rates for companies and not for individuals. For a private firm to carry out its operations (production of goods, completion of works, and supply of services) at the owner’s residence, residential premises must be converted to non-residential space.
What to Pay Attention to When You Need to Change the Legal Address of a Company
When changing the legal address of a company, it is important to take into account several key aspects:
1. Compliance with Legislation
Make sure that the new address meets the legal requirements. Familiarize yourself with the rules for registering legal entities in your region.
2. Availability of Necessary Documents
You should make sure that you have all the necessary documents for changing the address, including the founders’ decision.
3. Correct Address Indication
Please ensure that the new legal address is specified in full and correctly, including the index, street, building number, and other information.
4. Changing the Registry Information
Notifying the registration authority, the tax inspectorate, and other government agencies about the change of address is necessary. The registration authority will make changes to the Unified State Register.
5. Correspondence
Ensure that the new address will be convenient for receiving all correspondence and that you can organize postal communication at the new location.
6. Rental Conditions
If you rent a room, carefully study the lease agreement’s terms to ensure that it is legal and that the necessary amenities are available.
7. The Company’s Image
Pay attention to the location of the new address. A good location can enhance a company’s reputation and attract more customers.
8. Consultation with a Lawyer
It is recommended that you seek advice from a qualified lawyer who will help you properly prepare all documents and consider all legal nuances.
9. Informing Clients and Partners
Ensure you notify all your clients and partners of the change of legal address to avoid misunderstandings.
10. The Transition Period
Consider setting a transition period during which both addresses will be valid so that the switch to the new one can be smooth.
Each of these aspects should be carefully analyzed so that the change of legal address takes place without problems and does not negatively affect the company’s activities.
What to Do if the Company’s Location Changes
When the company’s legal address, which is prescribed in the articles of association, changes, the articles of association do not need to be amended.
The registration authority must be notified of a change in the legal address within ten working days of the change in the company’s management body (office) address.
The registering authority changes the Unified State Register of Legal Entities when changing the legal address.
Often, the company’s legal address is indicated in its contracts, which are concluded with business partners, service organizations, employees, contractors, and customers. If you change your legal address, we recommend changing such agreements and notifying all partners of the changes.
Contact us
If you have any questions or disputes regarding the legal address of a company in Belarus, we will be happy to help! Our long-term experience in divident payment will help you resolve any disputes in this area.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
