2023-05-03 06:17:53
The domiciliation of a company is a mandatory step to take when an entrepreneur launches his self-employed activity. It also intervenes from the creation phase of the business. It is then a question of opting for the postal, tax, administrative and legal address of the company created, at which the entrepreneur will receive all his official documentation. It is also the address that he will communicate to third parties on his quotes, invoices, flyers, website, contracts, etc. This step is self-evident for some self-employed professionals, while it requires more thought for others, depending on the activity carried out. Here are some mistakes to avoid when choosing the right business address.
Error n°1: confusing address of domiciliation and place of exercise of the activity
It is imperative to make the distinction between the address of domiciliation of your company and the place of exercise of the activity.
The law is formal, there is no obligation for these two addresses to coincide. Your domiciliation therefore corresponds to the address at which you will receive all your official mail, surrounding the life of your company. This is the headquarters of your business.
The place of exercise of your activity is the place chosen to carry out your professional projects. You can therefore practice from the place of your choice, whether it is the same department or not, from abroad. This is particularly the case for freelancers, or activities that do not require a stock of goods, regulated workshops, etc.
Mistake #2: Choosing your default home
Self-employed workers, micro-entrepreneurs, freelancers can opt for their personal address when they register their business. All legal forms of companies can choose to domicile their activity there, especially in the creation phase.
This option is interesting when the entrepreneur wishes to receive all his official documentation at home, for convenience and savings. On the other hand, by choosing this alternative, you must be aware that you are communicating your personal address to the third party, which tends to weaken the balance between your private life and your professional life.
In addition, depending on your situation (rental, condominium, big city), you must obtain some authorizations to establish the headquarters of your activity at home. You therefore risk a refusal that must be considered.
Mistake n°3: not studying the geographical sector
Before domiciling your company, if you do not want to choose your personal address as your registered office, you must absolutely study the geographical area you are considering.
Indeed, this analysis will allow you to choose a place:
- Dynamic;
- Easily accessible for you, your employees, your customers;
- Adapted to your core business;
- Supported by public and private grants to foster opportunities and boost your network;
- Financially accessible.
Reputable places, with strong influence, such as capitals or metropolises, are interesting for domiciliating your company. Indeed, you benefit from the popularity of a city, but also from its dynamism to develop your business, extend your network, easily participate in many events. A domicile in Lyon or Paris, for example, allows you to receive your customers easily thanks to the means of transport made available to them. You can also attract more customers if you locate in a tourist area, etc.
Mistake #4: Not inquiring regarding direct debit options
As an entrepreneur running a business, you have several options for domiciliating your business:
- Choose your home as the registered office;
- Opt for a domiciliation company: you benefit from a mailbox within a company that serves as the head office for many other companies. Several options are available: mail management, administrative support from the start of the business, rental of meeting rooms, etc. You can simply collect your mail here without having to rent offices. So, you can gain credibility by choosing a domiciliation company in a big city;
- Rent/buy an office or professional premises: there, you must invest a substantial budget. A financing plan is probably necessary if your activity requires a suitable workplace (shop, business, etc.).
Mistake #5: Forgetting to Compare Offers
Finally, when you do not opt for a home office, it is necessary to compare the offers that come your way and choose the one that seems the most suitable for your needs. Nowadays, services are more and more personalized to impose themselves as “à la carte” services. Companies adapt their offers to the needs of other companies, depending on their size and activity. So choose the most profitable, economical and practical solution for your activity and your needs as an entrepreneur.
This comparison will also allow you to know precisely what you need, what is essential or not, but also to negotiate the prices. Domiciliation companies offer services that are quite similar to each other, but perhaps they have differentiating services that are totally adapted to your needs? At what cost? If you choose a metropolis to settle in, which one to choose according to your budget?
Choosing the headquarters of your company requires taking into account a few criteria to make the best possible choice. Although some options seem the most obvious, the most economical, they are not always the most suitable in the long term.
(Photo credit: iStock)
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