Company registered office: a virtual registered office and its advantages

A company’s registered office is one of the basic details that every company must state when it is set up. It is not just an address on paper – the registered office has legal as well as practical consequences. An increasingly popular option is a virtual registered office, which brings flexibility and savings. In this article, we explain clearly what a registered office means and why it is worth considering the virtual version.

What a company’s registered office is

The registered office is the address entered in the Commercial Register (ORSR) at which the company officially operates. The company’s official mail is delivered to this address, and the address also determines which local authorities have jurisdiction over the company. A company’s registered office is therefore not merely a formality but an important identifying detail of the entire company.

Requirements for establishing a registered office

To be able to use an address as your registered office, you need the right to use it – for example as the owner of the property or on the basis of the owner’s consent. This consent is attached to the application for entry in the register.

• The property owner’s consent to the registered office being located there.
• An address suitable for the delivery of official mail.
• Entry of the address in the Commercial Register.
• Signage on the premises, if required by regulations.

What a virtual registered office is

A virtual registered office is a service in which a company uses a provider’s prestigious address without physically being based there. The provider of this service usually takes care of receiving, recording and forwarding the company’s mail. It is a completely legal and increasingly widespread solution, used above all by small companies and start-up entrepreneurs.

Advantages of a virtual registered office

A virtual registered office brings several practical advantages, which companies working online or from home in particular will appreciate.

1. Cost savings compared with renting your own premises.
2. A prestigious address in a good location.
3. Handling and forwarding of company mail.
4. Separating your private address from your business address.

What to watch out for

When choosing a virtual registered office provider, its reliability and trustworthiness are important. Check how it handles mail delivery, whether it will give you the consent needed for the entry in the register and how long it has been on the market. A poor-quality or cheap service can cause problems with the delivery of official correspondence, which, in the worst case, leads to important deadlines being missed. Also check references and whether too many companies are registered at the address, which can look untrustworthy to both the authorities and business partners.

Who a virtual registered office is ideal for

A virtual registered office is most appreciated by entrepreneurs who do not need physical business premises – consultants, online services, tradespeople working at their clients’ premises or start-up companies that want to keep their costs low. On the other hand, if a company needs prestigious premises for personal contact with customers or a warehouse, a virtual registered office on its own is not enough. The decision therefore needs to be tailored to how the company actually operates.

• Suitable for online businesses and services.
• Ideal for companies working from home.
• A saving for start-up entrepreneurs.
• Less suitable if you need business premises or a warehouse.

How we can help

Choosing the right company registered office affects the day-to-day running of the company. Bilvao’s accountants will advise you on which option is advantageous for you and help you prepare the documents for the entry. Always check the current fees and terms of the service with the provider and with us.

Related articles: Changes to Commercial Register details: what must be reported, Memorandum of association vs. deed of incorporation, Selling and buying an s.r.o.: what to watch out for.

Frequently asked questions

Is a virtual registered office legal?

Yes, a virtual registered office is a legal and commonly used solution. The company uses the address of a provider that takes care of receiving and forwarding its mail. It is important to choose a reputable provider that will give you the consent needed for the entry in the Commercial Register.

Do I need the property owner’s consent to establish a registered office?

Yes, to use an address as your company’s registered office, you need the right to use it, which as a rule means the property owner’s consent. This consent is attached to the application for entry in the Commercial Register. Check the specific requirements against the current regulations.