As every individual must have a principal residence, the company must also have a registered office. but what is it ? How to declare the head office of the company? And where to declare it? We answer your questions in this article.
What is the head office of a company?
The head office of a company is its legal address, without which it cannot exist. Also, for companies, the head office is mentioned directly in the articles of association. It also appears on all documents of the company like Kbis, Invoices, Contracts etc.
But be careful, it is not because a company determines its head office at a point A that it necessarily carries out its activity there. In some cases, it is actually a simple letterbox or a home for residential use.
at the time of registration
Defining the head office in the articles of association of the company is not sufficient to give it existence and legal value. It is still necessary to proceed with registration in the Register of Businesses and Companies. During this process you will be asked for the address of the head office of the company. So you should know this address before registering.
Otherwise, depending on the legal form chosen, the process of changing the head office can be complicated.
The Clerk of the Commercial Court can approve or deny your registration request. To avoid any denial, don’t hesitate to bring some proof of domicile, such as EDF challan in the name of manager or certificate of domicile.
Transfer of Registered Office
Depending on the needs of the activity, relocation of the registered office may be necessary.
For self-employed entrepreneurs who are not yet in a company, the formality is quite simple. Then you can do it online at URSSAF website.
On the other hand, if the company is a company, transfer of registered office also means change in the articles of association. In principle, any change of position requires an extraordinary general assembly meeting.
But, depending on the legal form of the company, the steps to be taken vary. For example, in an LLC, the manager may have the power to change the social status of the company. This power must be attributed to it upstream. In addition, the transfer of registered office is subject to approval by the General Assembly, which will validate the decision at the next meeting.
Various possibilities of domicile of head office of a company
on a leader
The manager of the company has every right to define his head office within his domicile. This is the case, for example, with all freelancers who do not have enough resources to use a domicile company or rent premises.
But beware, if you are a tenant, we would advise you to read your lease agreement carefully before setting up your head office. Indeed, some contracts prohibit the practice of professional activity. However, the law provides for the possibility of establishing the legal address of his company at his place of residence for a period of 5 years. In this case, you will have to send a letter to your lessee or inform them that you want to set up your registered office at your place of residence, but for a temporary period.
in company premises
The registered office of the company may be different from the place of conduct of its activity. But for practical reasons it is better to fix these two places in one place.
And if the company operates on multiple premises, then it has to choose the most profitable site.
Use a Domicile Company
Entrepreneurs without proper premises can also use domicile company for their head office.
Very often, these companies offer prestigious addresses (Avenue des Champs Elysées, Georges V, Foch, etc.). This has a significant cost, but such addresses also contribute to a company’s brand image.
Effect of choosing the head office of the company
As seen earlier, companies have an obligation to determine their head office for legal existence. But beyond the legal value, the choice of head office has other implications for the company:
- Nationality: You can set up your head office in France, Spain, Germany or the Cayman Islands. But depending on your choice, you will have to comply with the applicable law in the country in which you are registered. This is especially true at the level of taxation or labor law.
- Formalities: As with applicable law, registration formalities also depend on your administrative address.
- Disputes: If you have a dispute with a client, partner or employee, the court of competent jurisdiction will be at your Head Office.
So all these elements should be kept in mind before registration.
general question
Can a company have more than one head office?
No, the company has only one head office, but it can have many secondary establishments.
Is it possible to move my head office abroad?
Yes, it is possible, but it is a complex process involving the dissolution of the French company and the creation of a new foreign company.