The registration of a company requires the completion of several steps and formalities. These procedures and formalities are not the same for companies and sole proprietorships. To create a company, the drafting of the statutes is mandatory, which is not the case for the creation of a sole proprietorship. Nevertheless, the domiciliation is an obligation whatever the form of the company to be created.
With regard to the fulfillment of this obligation, the entrepreneur can freely choose the address of domiciliation of his company. In addition, he has the possibility to choose how his business will be domiciled, since there are many alternatives regarding business domiciliation. In this article, even if there are several possibilities in relation to business domiciliation, we will focus on everything there is to know about commercial domiciliation.
What is direct debit?
Before talking about the commercial domiciliation itself, it is important to know what the domiciliation of a company consists of and why it is a legal obligation for each company?
Business domiciliation is for the entrepreneur to provide an address to his business. This address must be a physical and real address. It is for this reason that the address of a post office box cannot be used as a business address. In addition, the domiciliation address is the administrative and tax address and may also be the business address thereof.
In addition, it is very important to know that the domiciliation address is a legal tool to know certain points concerning the company. The nationality of a company is identified by its place of domiciliation. For example, a company domiciled in one of the cities of France will have French nationality and the applicable laws or rules concerning this company will be French laws.
In addition, the domiciliation address of a company makes it possible to know the competent court for class actions against the latter as well as the business formalities center in charge of the company. Finally, the place of production of legal publications concerning a company depends on its domiciliation address.
Because of these various reasons, even if the entrepreneur is free with regard to the choice of the domicile address of his company, he must be very careful in choosing the address so that his company can derive the maximum advantages from this domicile.
Commercial domiciliation definition
Commercial domiciliation is a solution that the business creator can choose to domicile or assign an address to his business. This domiciliation alternative can be used by all companies regardless of their legal form (SARL/EURL, SCI, SAS/SASU, SA, etc.) and even an associative structure can be domiciled by commercial domiciliation. Commercial domiciliation is a form of business domiciliation with a third party, as it is a service offered by agencies specialized in this field. For the latter, it consists of providing a domiciliation address in return for payment of rent by the domiciled company. A domiciliation agency must have prefectural approval allowing it to carry out its activity and it must hold its k-bis extract, which implies its registration in the trade and companies register.
Commercial domiciliation requires the signing of a domiciliation contract by the domiciliation agency as the domiciliation agent and the company as the domiciliary. This contract must contain information about the parties to the contract. The domiciliation contract will serve as proof when registering the company.
Please note that the duration of the contract must be specified in this document. The minimum duration of a commercial direct debit is at least 3 months renewable by tacit agreement.
Commercial domiciliation: the advantages
First of all, the commercial domiciliation allows a company to have an administrative and tax address. But since this solution is a service offered by a specialized agency, it allows the company to be domiciled at a prestigious address. Having a prestigious address is an advantage, because this address will allow the company to have a brand image. As an example, she can easily have an address in Paris, Bordeaux, etc.
Often speaking of a prestigious address, think directly of the domiciliation costs which can be quite expensive. However, with commercial domiciliation, it is possible to benefit from one of these prestigious addresses at a cost accessible to all companies.
In addition, in parallel with the domiciliation service, specialized agencies offer additional services that the company can benefit from. Indeed, domiciliation agencies offer, in most cases, a mail management service. This service allows the manager to avoid wasting time in carrying out tasks related to the company’s mail (reception, sorting, etc.). In addition, depending on the domiciliation agency, it is possible that the mail management service is accompanied by a mail forwarding and/or scanning service. In addition, other services such as the rental of meeting rooms, the hotline (secretarial service) as well as support services for the development of the company’s activity or for the completion of formalities in order to obtain an administrative document.
Moreover, in addition to the savings that the company can make with the commercial domiciliation, this solution also allows the entrepreneur to save time in relation to the fulfillment of the obligation of his company. This is possible, because the entrepreneur will only have to choose a domiciliation company (possible on the internet) to domicile his business. In addition, the address of the leader of the company will not be published which allows him to have protection in relation to his private life.
How to domicile a company by commercial domiciliation?
As mentioned above, the entrepreneur must choose an agency which holds prefectural approval and which is registered in the trade and companies register.
The entrepreneur can choose the agency by comparing the addresses as well as the different services offered by them. It is possible to make these comparisons on the website of each domiciliation company. In addition, it is also possible to check the rates offered by these domiciliation companies.
In addition, after having identified the agency that will be responsible for domiciling the company, the entrepreneur must choose an address from among those offered by the agency as well as the ancillary services that the company will need. Then, the entrepreneur will communicate to the agency the information as well as the documents necessary for the latter to draw up the domiciliation contract. Finally, the entrepreneur must sign this contract to finalize the commercial domiciliation.
