A company's headquarters functions as the central hub for official business management. It also serves as the primary point of contact for interactions with authorities. This requirement applies not only to corporate entities but also to sole proprietors. Details about the headquarters are officially recorded in trade registry.
Beyond the headquarters, many enterprises establish branch offices where actual business operations take place. These branches often include retail stores or workshops. It's important to note that the formal headquarters can be situated at a different address than the physical branch.
Requirements for establishing a headquarters
Your business's headquarters must be established at a property for which you possess a valid legal basis. This legitimacy can be verified through written and duly authorized consent from the property owner, permitting the establishment of the headquarters. This authorization can also come from another authorized party associated with the property, such as a tenant or agent. If your business operates from your permanent residential address, explicit consent is not mandatory.
The headquarters must also be visibly identified with the company's unique identification number ("IČ") and its name. For individual entrepreneurs, the name and surname suffice. An exception applies to individual entrepreneurs who operate from their own residential address.
While the company's headquarters may not necessarily be the site of actual business operations, it remains crucial for receiving official correspondence. Thus, if legal documents are delivered to the headquarters' address, the responsibility falls on you.
Available options for your company's headquarters
The headquarters can be established in both residential and non-residential spaces, as long as the previously mentioned conditions are met. You can set up the headquarters:
· within a leased office space,
· at a virtual address (legal address),
· on your personal property,
· at your residence (apartment or house).
Renting office space is a popular choice as well. In this scenario, acquiring written authorization to establish your business's headquarters is mandatory. Regular rental expenses will also apply.
Virtual address (legal address)
If you don't require a physical office on a regular basis, you can save on unnecessary costs by obtaining a prestigious virtual headquarters address. Virtual headquarters packages often include the property owner's consent, mail handling services, and the option to display your company's name on the building.
Another possibility is to use another property you own, such as an office space. This approach eliminates rental costs and the need for consent to establish the headquarters.
Headquarters based on your permanent residence
Numerous entrepreneurs opt to use their permanent residential address as their company's headquarters, whether this residence is owned or rented. While this offers a straightforward solution without the need for additional property search or expenses, it comes with certain disadvantages. Your home address becomes publicly accessible in official records. Additionally, business-related correspondence will be directed to your home address, and in more extreme cases, tax authorities might conduct inspections.
Are you choosing a registered office for your business? Feel free to contact our specialists. We have various options available, ranging from leased offices to virtual addresses.