Legal Implications Of Having Registered Office In Coworking Spaces
One of the important steps in registering a company is having a registered office, which will be the place of operation of such business. Sometimes, entrepreneurs and founder work out of their homes, while others usually work out of offices. In the last few years, we have seen a bridge in the gap between homes and offices with the evolution of coworking spaces.
Coworking space is a single work environment shared by different people, startups and/or companies. These spaces are generally cheaper than renting out an entire office and thus new companies, small companies, freelancers, independent contractors, etc. opt for coworking spaces. The problem of real estate is solved while resources are shared for a fair cost. These advantages in coworking spaces over other office types has seen the industry grow multifold in the past few years.
It is essential to note that acquiring a DIN and DSC is compulsory for incorporating a company. To acquire a DIN and DSC, an individual is required to produce address proof documents.
Registered Office At Coworking Space
It is possible to have a registered office at your home address, at an office or at a coworking space. Basically, a company’s registered office address must be a permanent address and not a temporary one. For a company’s postal address, any address can be used.
The address of the registered office must be permanent, which means that the coworking space must own the said premises, which is usually rare because they are leased. If the coworking space owns the property, then by executing an agreement you can use the coworking office address as your company office address. If you decide to use your coworking space as your registered office, then the following documents also need to be produced:
- The Rental Agreement
A copy of the rental agreement is required, and the rental agreement must be executed between the owner of the property and the owner of the company. A coworking space agreement is not the same as a rental agreement required for registration. - A Non-Objection Certificate from the owner
A Non-Objection Certificate (NOC) is required from the legal owner of the property/coworking space, permitting the use of such property as a registered office of a company. The said document must be signed, dated and attached in Form 18. - A utility bill from the past two months
Utility bills are usually in the name of the owner of the building and it is difficult to obtain a utility bill in your name when you register with a coworking space as your registered office. Basically, the names on the utility bill must match the name of the owner. These bills are also required in opening a bank account and availing other official services.
Alternatives For Registered Office
Under the Companies Act, 2013, the registered office of a Chartered Accountant/Company Secretary (CA/CS) can be used as the official address of the registered office of a company. Although, it is advisable to talk to your CA/CS first.
Any founder’s permanent address can be used as the address of the registered office. The address of any family member with a permanent address can also be used by executing a NOC with the owner permitting the use of premise for office purposes.
Virtual Address
A virtual address can be used as the address of the registered office of a company. A virtual office is used when a company does not have the need for a physical office or cannot bear the cost of setting up an entire office. Virtual offices are provided by third-party service providers that enable services such as virtual receptionist, office phone number, address at a prime business location, etc. for a price.
How Can We Help?
LegalDesk.com provides legal documentation, registration, stamp duty and legal services for startups, companies and individuals alike. The legal implications of having your registered office in a coworking space are still relatively new in India. To equip you with all you need to know, LegalDesk.com provides you with pre-drafted affidavits, non-objection certificate (NOC), rental agreement, getting agreements printed on stamp papers online, etc. so that you may use your coworking office as your registered office address.
