Every limited company in the UK must have a registered office address. Whilst it must be a physical location it doesn’t have to be the place where the business operates from.
The main reason why every company has a registered address is because that is where all correspondence from Companies House will be sent.
So that you choose the right registered office for your company, this article summarizes what the main options are, and for each what the main advantages and disadvantages.
Option 1: Home Address
Advantages
- No Cost - there's nothing to pay for.
- Convenience - all the correspondence goes to the home address so no need to spend any time going to collect or wait for post from Companies House.
Disadvantages
There are 4 main disadvantages, and they all arise simply because your home address is on the public register and therefore in the public domain.
- Risk of identity theft - criminals could look to use and exploit it.
- Risk of unwelcome visitors - customers or suppliers could unexpectedly knock on your front door.
- Perceived lack of credibility - your business could be perceived as being small, especially by much larger businesses, and for this reason they choose not to do business with you.
- Work / Home separation - Since all the company’s post to your home address, then there’s no separation between your work life and home life.
Option 2: Mailbox Company Address
Advantages
- All the disadvantages in option 1 don't exist - that’s because the home address is not in the public domain.
- Low cost - the annual cost for just using the registered address can expect to be a minimum of £100. It will be a lot more if you add post opening & forwarding services.
- Pay as you go - there’s little commitment so you can start and cancel whenever you wish – that could be a good interim solution if you’re moving address, and you want the piece of correspondence to go to the home address. So, there is no need to spend any time going to collect or wait for post from Companies House.
Disadvantages
- Waste time - as all post goes to the Registered Office, you need to spend time going to collect it on a regular basis. To avoid wasting time, this means you’ll have to pay for a forwarding service.
Option 3: Your Own Commercial Office Address
Advantages
- All the disadvantages in option 1 don't exist - that’s because the home address is not in the public domain.
- Easier access - as you have somewhere to collaborate with prospects, customers and partners as they can come in.
- Convenience - as all post goes to your address, so the disadvantage of option 2 doesn’t exist.
Disadvantages
- Cost - will depend on the size, location and quality, but the rent for even a small one room office is likely to be least £500 a month.
- Commitment - A lot of premises are rented, and that almost certainly means you are ‘locked in’ for a minimum period of years. Usually several years.
Option 4: Your Accountant's Office Address
Advantages
- All the disadvantages in option 1 don't exist - that’s because the home address is not in the public domain.
- Low cost - the annual cost is much lower than renting your own office. For just using the registered address you can expect the cost to be around £150. This avoids the disadvantage of Option 3.
- Extra Support - guarantees that the important documents and notifications are received on time, and handled by someone you trust.
- Pay as you go - there’s likely to be minimal commitment, as a good accountant will let you start and cancel whenever you wish. This avoids the second disadvantage of Option 3.
Disadvantages
- Access - you don’t have anywhere for prospects, customers and partners to collaborate in as they are unable to come in.
In Summary:
In short, every company has several options to choose from when it comes to where they have their Registered Office.
If you’d like a chat to see how we can help drop us an email to [email protected] or call one of the team on 0161 410 0020.
Disclaimer
It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate, it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, because of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavor to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken because of using any such information.
