Business

Business Trading Address: How Does it Work?

If you are thinking about registering a company in the UK, then you need to make sure that the future company has a legal address. UK companies are required to have a local registered office address. In this article, we will talk about one of the mandatory requirements for setting up a business in the UK – a business trading address.

What is a Business Trading Address?

Many entrepreneurs, wish to improve the image of their business, acquire new partners, optimize the tax burden, and register companies in the UK. One of the mandatory details of British companies is a business trading address. It is necessary not only for receiving letters and other business correspondence but also for storing documentation. Territorial binding of a legal entity is necessary from a practical point of view: so that government agencies, counterparties, and partners can contact company leaders.

All UK firms must provide legal addresses during the registration process and maintain them for the entire period of their existence. The address of the registered office must be located in the jurisdiction where the company itself is established (Great Britain, Scotland, Northern Ireland). Both residential and non-residential addresses are suitable for these purposes. But in order to protect the privacy of individuals, many business owners prefer to use a commercial address.

Can a Private House be Used as an Office for a UK Company?

Theoretically, there is such a possibility. But lawyers do not recommend using a personal address for commercial purposes. It is better to give preference to commercial real estate in this case, and here’s why.

All information about the British company is in the public domain. Accordingly, the legal address of the company is also indicated there. This can lead to the fact that unwanted visitors will come to the residential building, and the post will be overflowing with business correspondence, which, you see, brings certain inconveniences.

Potential investors are more likely to work with a company whose office is located in a prestigious business center than with one based in a residential building.

A business trading address on non-residential premises enhances the status of the company in the eyes of potential partners and customers and strengthens the credibility of the company.

The separation between work and personal life also plays a big role in this case. After all, it is difficult to focus on corporate affairs at home. And this factor will definitely have a negative impact on the further development of the business.

How to Get Permission to Use a Residential Property as an Office for a UK Company?

A homeowner who plans to register their personal address as an official address of a UK company must first obtain permission from the Housing Authority. It is necessary to contact the local council with a request addressed to the head of the housing department and provide the following information:

  • What will the future enterprise do (business line, business plan, etc)?
  • Does the owner want to change the layout of the premises?
  • What vehicles will be used in the course of commercial activities?
  • Opening hours of the future company, noise level.

It is not worth starting any business at this address without official permission from the head of the housing association. Each appeal is considered on an individual basis. If part of the residential premises is transferred to the status of commercial, then these changes will lead to the need to make additional payments.

Is it Possible to Change the Registered Address of a UK Company?

This possibility is provided. However, the new address can only be within the UK. All such changes must be reported to the registration chamber without fail. The registry is updated within 24 hours, so the new address of the British company will be publicly available in a short time. It is also necessary to ensure that all corporate documents are promptly moved to the new office.

The Importance of the Cleanliness of the Legal Address

At the stage of creating a company, registration of a business trading address is one of the key issues. Its cleanliness is also important because this aspect affects the further work of the company, ease of customs clearance, registration of consignment notes, etc. Many entrepreneurs prefer to rent a business trading address from reliable landlords. Usually, a number of reasons lead to such a decision: the lack of own premises, a change in the direction of activity, the reorganization of the company, the invalidity of the previous address.

The cost of renting a business trading address in the UK depends on such factors: 

  • exclusivity of the offer (how many companies are already registered at this address);
  • duration of the lease;
  • possibility of extending the contract;
  • speed of preparing documents. 

Also, sometimes tenants order additional services – postal services, and secretarial services, which affects the final cost of services.

In any case, the presence of a registered address is necessary when initiating the process of registering a company in the UK. Hoxton Mix experts provide a full range of relevant services related to the establishment of English companies. This list also includes the provision of a business trading address. Specialists practice an individual approach to each customer, solve issues of any complexity, develop unique tax optimization strategies, and provide professional assistance in servicing the company.

Conclusion

Every company must have a business trading address. All sorts of official letters and notifications, as well as business correspondence, are sent to it. The company can change the address at any time. The office located at the business trading address must contain the register of shareholders, directors, and the statutory documents must also be stored there. In addition, it should be possible to personally deliver documents and other correspondence to the address. A business trading address cannot be outside the region that was specified at the conclusion of the Memorandum of Association. If the company is registered in Scotland, the registered office must be within Scotland, if the company is registered in England and Wales – either England or Wales.

With the help of Hoxton Mix, you can quickly prepare all the documents and open your own business in the United Kingdom, as well as receive a lot of services for its control and financial optimization.

Tirupati Gumpula

Hi, I'm a Tech Enthusiastic and founder of Popular technology blogsWay to Hunt. & Elite Tricks. Want to promote your brand? Email: [email protected]

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