Company registered office on the cheapest address? Beginning of problems and damage to reputation

Date: 21.06.2016

The popular service of providing a company registered office, former “virtual registered office”, has certain snags. Services of high-quality will save your time, while the insufficient ones will damage you, beginning with damage to image and ending with problems with the authorities. The tax offices have concentrated on what they consider a proper (real) registered office of a firm versus the virtual one (which they have been pursuing). That is why you have to consider properly where you will locate your company registered office.

As the basic requirement for choice of a registered office provider, you should not look for the lowest price, but you should consider whether the registered office meets requirements of all legal regulations, whether it is located on a good address and, the most importantly, whether the provider is really able to provide all of the services it offers.

Where will you meet your customers and partners?

Company registered office for CZK 99 – 299 per month is at least suspicious. By the way, as everything what is too cheap. It has a real price; a litre of milk is not sold for CZK 5, or it would have nothing to do with milk. So it is possible that for a very low price your company registered office will be in inappropriate spaces, basement, etc. You can easily get among the so-called “letter-box” firms – for the entrepreneurs locate fraudulent or problem and non-communicating firms on very cheap addresses. You can be safe what the company of such firms will affect your image.

There must always be possible to use the offices and the conference room for negotiations with authorities and the clients or for the management meetings in the real registered office. If you wish to make an impression, the spaces should be clean and neat, fitted and furnished up to the appropriate extent. There should be the employees at hand who will prepare refreshments and who are available if you need them to make copies of documents or other office works.

Will the provider take care of your mail and bookkeeping?

You should also consider where your mail will be delivered, who will receive it, keep it and inform you about it and how you will get the mail. Is there sufficient number of employees who may scan the important letter for you immediately, send by e-mail or forward it to you? Before you agree the cheap registered office, remember to ask whether you will be able to receive your mail free of charge or for some additional fees, whether the employees will inform you of the mail or they will shred the uncollected mail in a few days.

A good provider should offer bookkeeping and reporting, including storage of the documents in the place of the registered office as a part of its services. It is efficient, saves your time and no one would think that you have just a virtual registered office on the address. It may serve as evidence for authorities that your business is trustworthy and you aren’t one of the suspicious “letter-box” firms.

Personal visit will save you from troubles

In reality the registered office may look different from the photos in the Internet. Before you click rashly on the cheapest offer, visit the place and make sure that the head office meets your requirements. Check right on the spot that the spaces, services and staff meet your requirements for a registered office where you can invite your business partners, customers and the appropriate authorities. After all – your firm registered office does you credit.