Legal Address – What is It
A legal address is an important concept in business and law. It designates the actual location of a company for conducting official business. This address serves as a means of providing legal identification and plays an important role in legal relations related to state registration, reporting, and interaction with government agencies.
In this article, we will examine in detail the concept of a legal address and the requirements that apply to its definition. We will also analyze how to choose it and how it affects the company’s activities. The expression “legal address” must be understood correctly since the correct definition of this concept can significantly affect a business’s success and legality.
What is Called the Company’s Legal Address
The regulations on company registration in Belarus do not define “legal address,” but this expression is firmly entrenched in speech and some documents.
The company’s legal address is where the permanent management body or the head of the company is located. The official legal address is the company’s location, which is listed in the Unified State Register of Legal Entities and Individual Entrepreneurs.
In practice, the legal address often coincides with the location of the company’s office or production facility if the company does not have a separate office and the company’s management works in a production room. At the same time, production sites, warehouses and other company divisions may be located at other addresses. Residential premises cannot be used as a legal address except in cases with private unitary enterprises or peasant (farming) farms.
The legal address must be indicated in the company’s articles of association, which are submitted to the registration authority when the company is registered. The charter must specify in detail the territorial unit (region, district), locality (city, town, village), street name, house number, apartment or other premises, and office, if applicable.
The Legal Address of a Private Unitary Enterprise
A private unitary enterprise is a company that one owner opened.
An individual who opens a private unitary enterprise can register it at his residence. This is possible when the living space belongs to an individual by right of ownership. In this case, it is necessary to obtain the consent of other homeowners (if any) and all adult family members of the owner and family members of other owners of the premises. It is important that the owner of the residential premises permanently resides at this address.
If the owner’s place of residence is used as the legal address of the enterprise, utility bills are usually charged at the rates set for organizations, not individuals. In addition, residential premises must be transferred to the category of non-residential for carrying out economic activities (production, performance of works, or provision of services).
How to Choose a Company’s Legal Address
Choosing a legal address for a company is an important step, as it affects not only the registration of a business but also its future activities. Here are the main points to pay attention to:
When to Choose a Legal Address
1. At the stage of company registration
The constituent documents indicate the legal address; therefore, it is determined before submitting an application for registration to the registration authority at the company’s location.
2. When changing the place of business or business structure
If the company’s management body moves to another office or city, officially changing the legal address will be necessary.
How to Choose a Legal Address
Only the place where the company’s management body is located is suitable as a legal address. What kind of place it could be:
1. The actual location of the office
It is usually the place where the company operates. It is convenient: all correspondence and inspection authorities will be sent to the specified address.
2. Own or rent office
If a company owns a building, it is easiest to register an address for it. In the case of a rent, it is important to ensure that the landlord agrees to provide the premises as a legal address.
3. Special legal addresses
Sometimes, companies rent an address without a real office (for example, when registering in another region). However, the tax authorities may request confirmation that the company’s management body is at the specified address. Therefore, even when a company uses a virtual office, there must be a physical, real-world location—a legal address.
4. Verification of compliance with requirements
You need to make sure that there is no ban on using office space.
5. Location for customers
When the company’s address is published for customers, it is better to choose a convenient location, such as the city center or with good transport accessibility.
6. Tax benefits
In some regions or zones, you can receive tax benefits upon registration. For example, special economic zones or offshore zones.
For all questions about choosing a legal address, we recommend contacting our experienced lawyer.
What to Consider when Choosing a Legal Address
Here are some factors that are recommended to be considered when choosing a legal address:
1. The cost of renting or owning
The budget for an office or space may be a limiting factor.
2. The reputation of the area
A legal address in a prestigious area can increase the trust of partners.
3. The possibility of changing the room
Make sure that the lease agreement specifies the possibility of using the premises as a legal address, check the term of the lease agreement.
4. Checks and correspondence
Please keep in mind that letters from government agencies and regulatory authorities may be sent to the premises at the legal address.
The legal address is important for registration and the company’s normal operation. Making the wrong choice can lead to problems with the tax authorities or the loss of correspondence, so approach this issue with attention.
What Information about the Legal Address is Needed for the State Registration of the Company
Information about the company’s location is prescribed in the application for state registration. The application is submitted to the registration authority, depending on the territorial location of the premises in which the legal address was determined. When a company is not yet registered, it cannot conclude a rental agreement or purchase the premises in which it will be located. Therefore, for state registration, a letter of guarantee from the owner of the premises in which the legal address is assumed is required. This address is included in the company’s articles of association.
The following information about the company’s address is specified in the application for state registration of the company:
- Postal code.
- Country region, district, village council (if available).
- The name of the locality.
- The street’s name (lane, avenue, or other urban unit).
- House number and building (if available).
- The room type (office, apartment, room) and its number.
- Purpose of the premises (residential or non-residential).
After the company is registered, the registering authority transfers information about the legal address to the Unified State Register of Legal Entities and Individual Entrepreneurs, the tax authorities, the Social Protection Fund, and Belgosstrakh. This address becomes the official address where the organization receives all legally relevant documents.
Why is it Important to Choose the Right Premises for a Legal Address
Choosing the right premises for a legal address is of great importance for a business for several reasons:
1. Legal liability
The company’s legal address must comply with legal requirements. If the address is invalid or not used, this can lead to fines, problems with tax authorities, or even the suspension of the company’s activities.
2. Receiving official correspondence
All official letters, notifications, and demands from government agencies, banks, and counterparties are sent to the legal address. Incorrect address may lead to omitting important information, negatively affecting the company’s activities.
3. The company’s reputation
The company’s address often indicates its reliability and status. For example, an address in a business centre or a prestigious area can increase the trust of partners and customers. At the same time, registering a company at a “massive” or suspicious address may scare off potential partners.
4. Tax risks
Some tax authorities may check the correspondence of the legal address to the actual place of business. If a discrepancy is found, it may lead to tax audits or suspicion of violating the law.
5. Convenience for employees and customers
If the legal address matches the company’s actual location, it simplifies logistics for employees, customers, and partners. It is especially important for organizations that receive clients in the office.
6. Compliance with legislation
In some countries, there are restrictions or requirements for legal addresses (for example, the need to have a rental agreement or proof of ownership). Making the wrong choice can lead to difficulties in registering or changing company documents.
7. Mass registration
Some addresses are used for mass company registration. This may attract increased attention from the tax authorities and reduce the trust of counterparties.
Choosing a legal address is not just a formality but a strategic decision that directly affects the company’s work and reputation. It is important to carefully study all aspects and, if necessary, consult with lawyers or specialists.
Does It Need to Change the Articles of association when Changing the Company’s Legal Address
When the company’s management body is relocated, the articles of association do not need to be amended to reflect the change in location.
When a company’s legal address (office) changes, the registration authority must be informed within 10 working days. After receiving such a message, the registration authority changes the Unified State Register of Legal Entities.
Attention must be paid to the fact that the company’s legal address can be indicated on its website, in contracts with business partners, in job advertisements, in advertising, and in employment and civil law contracts. In case of a change in the legal address, we recommend making changes to such agreements and notifying business partners of the changes.
For all questions related to changing the company’s legal address, we recommend contacting our experienced lawyers. We can advise you on issues related to your legal address, arrange the necessary documents, and represent your interests to government agencies.
