Virtual office services overcome the disadvantages of using a home address for business

Sometimes business leaders decide to register a company at a home address, unless there is a statutory or contractual provision which prevents this. If a sole trader does not have an institution to carry out his business (for example, a service provider working exclusively with his clients), he can locate his business in his place of residence. However, first, you need to familiarise yourself with the disadvantages of using home address for business. In this article, we will consider all the risks and benefits of registering the main office of a company at an owner’s place of residence.

To register an office at home, you need to provide a document confirming the ownership of the declared premises. The document may, for example, correspond to a lease agreement, an electricity bill or a telephone bill.

It is not essential to be the owner of the declared place of residence, a tenant can use his or her personal address to register their individual property.

The company can be based at home at all times, unless this is prevented by any statutory or contractual provision eg is not permitted by the landlord or co-owners.

There are many options for the location of the company. For example, it can be set up at the home of a manager or the head of a company. This solution is the least expensive but it has certain disadvantages. It could, for instance, violate the privacy of the manager who is running the company.

Business owners should also be aware that their personal address will be known to all their partners and clients. This means that they can come to your home at any time. Most likely, you will not feel comfortable with an unexpected visit from customers or an inspector.

What are the pitfalls of using home addresses for business?

An entrepreneur can simply set up his office address at his personal address. However, it is extremely important for the company that this address be the address of a legal representative and not an employee or partner.

To run a business from your home, you may need permission from your:

  • mortgage provider or landlord
  • local planning office – eg if you’re planning on making major alterations to your home
  • local council – eg if you’re going to get lots of customers or deliveries, you want to advertise outside your home or if you need a licence to run your business

What is the best and most economical solution for business?

Virtual office services overcome the pitfalls of using home addresses for businesses and provide access to business centres where you can work in well-equipped offices and a stimulating business atmosphere.

Hoxton Mix is one such provider of virtual office services. To use its services, you need to sign a co-operation agreement, which is far more flexible than a commercial rental agreement. It requires a minimum three month commitment but can be extended by mutual agreement.

Moreover, when using such services, you can subscribe only to the services that you need, but this does not prevent you from using them on an ad hoc basis. You have options such as:

  • rent a conference room;
  • office for an hour/half day/week and more;
  • receive emails that will be forwarded to you;
  • use a prestigious address.

Choosing a virtual office for a company allows you to have access to a fairly extensive address book. Indeed, companies like Hoxton Mix offer addresses in prestigious locations in cities and metropolitan areas.

Placing your business in such locations allows you to gain the trust of your partners and therefore, it is easier for you to win customers.

This solution is particularly suitable for companies that need to have a prestigious address but don’t have the financial means to invest in traditional premises.

What’s more, services like Hoxton Mix usually have a front desk. Thus, they “filter” visits at the entrance to the premises. It reduces the time spent on unexpected and unwanted visits (for example, associated with an advertising campaign).

They can also provide other services. They can take care of your company’s call answering service and even organize your schedule (agenda, meetings, etc).

By choosing a commercial residence, the manager ensures that his personal residence remains separate from the company’s headquarters.

Well-known office locations and business centres are increasingly becoming the ‘head offices’ of choice for many small and medium sized businesses.