Can a private limited company be registered with a home address? Yes, there is good news! As long as the location is appropriate for the specific firm, it can be registered. The Companies Act of 2013 does not mention that a person’s home address cannot also be their place of business. In light of those mentioned above, we review the procedures for registering a private limited company with a residential address in this blog post to benefit interested readers.
Legal Considerations for Registering a Pvt Ltd Company
Legal requirements for registered office addressÂ
When claiming a company’s registered office during incorporation, the following paperwork is typically required:
- Electricity, water, and property tax bills;
- A landlord’s no-objection certificate (NOC) for the registered office and
- Lease or rental contract between the landlord and the business
Permissibility of using a residential addressÂ
The main point of the rulings on the use of residential apartments is that even if a professional uses the entire apartment to carry out their profession, there is still no change in use to a commercial one, and the same cannot be prohibited. There is no infringement of the regulations relating to the change of use if the flat is partially utilized as a business office and residential is also the dominant user.
Factors to Consider
There are two ways to record the registered office address when registering a new business:
1. Temporary address
Use a location as your temporary registered office when registering a company and when filing the paperwork for your permanent address within 30 days of your firm’s registration.
2. Permanent address
Use a permanent location for the company at the time of registration; in this scenario, no filing is necessary after the company has been registered.
In both situations, the address listed on the registration forms must be included in the registration certificate. Any address changes made following the firm’s registration won’t be recorded on the certificate of incorporation.
To register a pvt ltd company, the registered office address does not have to be a business address. Any shareholder, director, or other person’s home address could be listed.
Advantages and disadvantages of using a residential address
AdvantagesÂ
- The promoters won’t incur significant financial outlays because of this, which will save on operating expenses.
- The authorized individual will get all correspondence addressed to the company, making the job easier. However, letters are the only form of communication used nowadays.
- You can relocate your business as needed without updating your registered office address or going through the laborious process of moving your office within the same city or outside of the state.
- If the location is used as a place of business, you can obtain a GST registration there or any other tax registration. Additionally, the person might offer any branch office for registration under tax laws.
Disadvantages
- The location will be accessible to the general public. The privacy of the directors, promoters, or partners, as the case may be, may be violated as a result.
- The Shop & Establishment Act registration and any additional registrations needed can be obtained even at the residence.
- The location will be treated as a commercial location and subject to the relevant rate of taxes once registered for business purposes under the Shop & Establishment Act of the concerned state.
- Giving a residential address might not have the same impact as a business address and might give the wrong impression to the organization’s customers and creditors.
Alternatives to using a residential address
- Virtual office servicesÂ
- Renting an office spaceÂ
Benefits of renting office space
The advantages of renting office space include the following:
- Free-floating working capital
- Financial adaptability
- Practical shared workspace
- Geographic advantage
- Lessening of tax paperwork
- Geographical Context and Networking Possibilities
- Reasonable prices
Steps to register a private limited company with a residential address
Step 1: Name Approval
There are two things to take into account while deciding on a name for a private company:
- Principal activity’s name
- Private Limited’s name
Your chosen name must be registered when forming a company. You must first file a request for name approval with the Ministry of Corporate Affairs (MCA) to reserve a name for your business. Your application for name approval may contain one or two prospective names and an explanation of your company’s goals. You can suggest one or two other names if your first pick is rejected. The MCA typically grants name requests in five business days.
Step 2: Directors’ digital signature certificate
Traditional signatures are not recognized by the MCA in India. Instead, a digital signature verified by an Indian certification authority must be included in all filings with the MCA. Therefore, digital signatures are required for directors before the firm is incorporated.
Directors must submit a copy of their identification documents and complete a video KYC process to receive a digital signature. If a director is a foreign national, their passport and other necessary documents for company registration should be endorsed at the closest embassy.
Step 3: Address of the registered office
The business should provide the company registrar with the official address of the registered office after the registration process is complete. The registered office is where business is conducted, and all company-related paperwork is kept.
The registered office of an incorporated company is essentially the location where the company conducts its business. In other words, the company’s registered address is incorporated, such as a private company or LLP.
The company’s official address to be registered must be stated on the application for private limited company registration and supported by the necessary documents as address proof.
Step 4: Submitting the company incorporation application
After getting the required digital signatures, submit the incorporation application to the MCA in the SPICe form with all pertinent attachments. The company’s Memorandum of Association (MOA) and Articles of Association (AOA) are attached to the application for incorporation. The company can obtain the incorporation certificate and PAN if the MCA finds the application complete and acceptable. The MCA typically approves all applications for incorporation in five working days.
Obtaining necessary permits and licenses
The following is a list of licenses and permits needed to form a Private Limited Company in India:
- Business registration
- PAN card
- GST registration
- Professional tax registration
- MSME registration
- Trademark registration
All business types must obtain specific licenses and permits from government organizations to register their businesses. Everything depends on the kind of business you intend to run. Before starting a business, consult an expert to assess and comprehend the legal prerequisites of obtaining a business license and authorization in India.
Conclusion
Entrepreneurs frequently want to designate their permanent home address as the registered office address. By doing this, the unneeded inconvenience of switching between different addresses after the company’s incorporation would be avoided. These precautions are always useful until the business is stabilized and the company is allocated permanent office space, given the initial volatility and uncertainty in the early stages of a startup.
The current business environment also benefits entrepreneurs and businesspeople by allowing the use of a residential address as the registered office for a company or a limited liability partnership when the necessary paperwork is provided with the aid of specialists. Depending on the nature of the firm and its operations, deciding to use a residential address as the registered office constitutes complete desertion of the co-founders. However, it is always a viable alternative to consider when starting a firm.
For the following three reasons, one can also contact Govche India Pvt. Ltd.’s web portal, Kanakkupillai.com, which is situated in Chennai, to register a private company with a residential address:
- Kanakkupillai has a staff of devoted and highly skilled business analysts, company secretaries, corporate attorneys, chartered accountants, and financial specialists and provides multidisciplinary legal, financial, and business advising services.
- Their major goal is to assist the entrepreneur with the legal and regulatory requirements, providing assistance and legal counsel at every stage, from business creation to establishment. They collaborate with some of the most reputable, long-standing companies and entrepreneurial innovators.
- To safeguard their customers’ corporate interests and general well-being, their specialized team envisions helping and advising them on various legal and regulatory challenges.
Related Services
FAQs
1. Can I register a private limited company with my home address?Â
In India, using a home address for business purposes is, to start with, acceptable.
2. Are there any restrictions on using a residential address to register a private limited company?Â
It must be a complete postal address in the same state as the company’s registered office. Although commercial addresses are frequently used for registration, residential and non-residential addresses are accepted.
3. What are the legal requirements for a registered office address for a private company?Â
- An electricity bill, a water bill, or a receipt for property taxes
- A letter of approval from the owner of the registered office
- Lease or rental contract between the landlord and the business
4. Will using a residential address for my private company affect my privacy and security?Â
A third-party registered agent can help ease business owners’ privacy and security worries about using their home address as their company address. A registered agent must be chosen when a business registers as an LLC or a C corporation. A registered agent is a person who has been permitted to accept the service of process notifications and official letters on the company’s behalf (within the state of business registration).
5. Can I change the registered office address of my Pvt Ltd company in the future?Â
Any changes to a company’s registered office must be reported to the ROC after the registered office has been declared by filing the INC 22. If the registered office address changes within the same city, town, or village, the change must be reported within 15 days by filing the necessary papers.
The registered office must approve a specific resolution adopted by the firm if the new registered office address is outside the city, town, or village boundaries. If the firm’s registered office is to be moved from one ROC jurisdiction to another, then the Regional Director of the ROC must approve the change.
6. What are the advantages of using a residential address to register a private company?
The following are the advantages in this regard:
- The promoters won’t incur significant financial outlays because of this, which will save on operating expenses.
- The authorized individual will get all correspondence addressed to the company, making the job easier. However, letters are the only form of communication used nowadays.
- You can relocate your business as needed without updating your registered office address or going through the laborious process of moving your office within the same city or outside of the state.
- If the location is used as a place of business, you can obtain a GST registration there or any other tax registration. Additionally, the person might offer any branch office for registration under tax laws.
7. Are there any disadvantages to using a residential address to register a private limited?Â
Unfortunately, yes, as listed hereunder:
- The location will be accessible to the general public. The privacy of the directors, promoters, or partners, as the case may be, may be violated as a result.
- The Shop & Establishment Act registration and any additional registrations needed can be obtained even at the residence.
- The location will be treated as a commercial location and subject to the relevant rate of taxes once registered for business purposes under the Shop & Establishment Act of the concerned state.
- Giving a residential address might not have the same impact as a business address and might give the wrong impression to the organization’s customers and creditors.
8. How can I rent an office space for my private ltd company?Â
You can rent office space for your private company with a lease agreement. To avoid conflicts with the authorities, ensure your rental property has commercial electricity connected and commercial taxes paid.
9. Are there any alternatives to using a residential address for registration?
Yes, there are at least four options as listed hereunder:
- Utilizing registered agent services
- Using mailbox service
- Using a virtual office
- Utilizing co-working space
