Choosing a registered office for your limited company may seem inconsequential, but it does require some consideration. You can use any address that you want, including your home address, on the condition that it’s located in the same country where you set up your company. However, using your private residential registered office is not advisable.
The benefits of a non-residential registered office address
The UK has a micro-business population of approximately 5.3 million, with the vast majority of these enterprises being home-based. But running your business from home has no bearing on the location of your company’s registered office.
Your registered office is simply the HQ of your business – an official contact address where statutory correspondence can be delivered from HMRC and Companies House. You don’t have to base your business at your registered office.
It’s generally accepted that a non-residential (commercial) registered office is the best choice, so let’s take a look at the reasons why this is the case
Registered office addresses are recorded at Companies House and published on the official companies register. This information is available to the general public, including those pesky cold-callers and direct mail marketers.
Moreover, if anything goes wrong and your business becomes insolvent, clients and creditors can access your home address on the companies register. Company insolvency could also impact your personal credit history due to the link to your residential address.
Therefore, the best way to protect yourself and your privacy is to avoid using your home address as a registered office.
2. Professional image
Thinking about the professional image you want to present, a commercial registered office is far more likely to impress potential clients and investors than a residential one.
Your business may be small, but that shouldn’t limit your ability to make a big impression and establish a corporate image.
Regardless of your residential postcode, a non-residential registered office will legitimise your company and boost your professional credibility to a far greater extent.
It’s a great way to build trust because prospective clients and investors place greater confidence in a business if it has a commercial registered address in a prominent location.
And just imagine how impressive it would look on your letterheads and marketing materials!
4. Mail handling
Using a residential address as your registered office would lead to an increase in mail being delivered to your home. Whilst official government mail wouldn’t be an issue, you could end up receiving a significant amount of junk mail.
To avoid this potential nuisance, you can set up a commercial registered office service. This type of address service is available from company formation agents, like 1st Formations, and other third-party address providers.
As part of this service, junk mail is intercepted and discarded. Only statutory mail addressed to your company is forwarded to you by email and/or to your nominated contact address anywhere in the world.
The mail that is delivered to your registered office is very important. If you travel or move around a lot, you run the risk of missing this mail. Setting up a registered office service with mail forwarding offers greater flexibility in these circumstances.
No matter where you are in the world at any given time, your statutory company mail will be delivered to your registered office and forwarded to you by email or post. This is much easier than using your home address as a registered office and having to go through the hassle of notifying Companies House whenever you travel or move.