What is a Legal Address

In the process of establishing and operating a company, one of the crucial points is to determine its legal address. This address is not only prescribed in the constituent documents, it is indicated in correspondence; representatives of government agencies, business partners, and other interested persons come to this address in case of inspections. Understanding the meaning of a legal address, its requirements, and the procedures associated with changing it is essential to ensure the legality and effectiveness of the company’s activities.

The Сoncept of a Legal address

Belarus does not have a term for “legal address” in its legal norms. However, this concept is widely used in business practice and some official documents.  

The legal address is usually the location of the company’s permanent executive body or its head. The official legal address is the location of an organization registered in the Unified State Register of Legal Entities and Individual Entrepreneurs.  

Most often, the legal address coincides with the company’s office or, if there is none, with the location of the production facility where the organization’s management bodies are. However, the company’s production facilities, warehouses, and other divisions may be at different addresses. Using residential premises as a legal address is prohibited, except in cases provided for by private unitary enterprises and peasant (farm) farms.  

The legal address must be indicated in the company’s charter, which is submitted to the registration authority when starting a business. This document must detail the administrative unit (region, district), locality, street name, house and room number, and office, if relevant.  

The Difference Between a Legal Address and a Postal Address  

The legal address is the registered location of the company, indicated in the Unified State Register of Legal Entities and constituent documents.  

The address is the company’s actual place of business, which may differ from the legal one (for example, if the company is registered in one place but the office and production are located in another).  

The postal address is where the organization receives correspondence. It may match the legal or actual address, but if necessary, companies can use other addresses for mail, for example, by renting a mailbox.

What Address Can a Private Unitary Enterprise be Located At

A private unitary enterprise is an organization established by one owner.  

An individual who opens a  private unitary enterprise may indicate his residence as a legal address if he owns the premises. However, this requires the consent of all other homeowners (if any), all adult family members of the owner, and other co-owners of the property. An additional condition is the owner’s permanent residence at the specified address.  

When using a place of residence as the legal address of an enterprise, utilities are usually charged at rates set for organizations, not individuals. Also, if economic activities related to production, work performance, or service provision are planned for this room, it must be transferred to a non-residential fund.

Features of Registration of a Legal Address

When registering a company, the legal address is essential since this is the official location of the organization, and it is entered into the Unified State Register of Legal Entities. You can confirm the legal address of a company that has not yet been established using some documents.  

Documents for Confirming the Address during State Registration  

To confirm the legal address when registering a company, you must provide several documents proving the right to use the appropriate address.  

1. A document confirming ownership or lease rights

This may be a copy of the lease agreement, a certificate of ownership, or another document that confirms the legality of the organization’s location at this address. If the premises have several owners, they must sign this document.  

2. Letter of guarantee

If the premises are provided in the future for a legal address under a lease agreement, the owner may provide a letter of guarantee. In it, he confirms that the organization that will be registered can use this place as a legal address and guarantees that there will be no claims in the future. This document also confirms that the premises comply with the standards and requirements required for legal entity registration.  

3. Lease agreement 

This method of confirmation is suitable for established organizations. If the organization rents premises, you must provide a copy of the lease agreement indicating the exact address, lease term, and other conditions to confirm the legal address. The lease agreement must be valid at the time of submission of the documents to the registration authority. The lease terms must allow the use of the premises for the organization’s legal address.

The Role of the Letter of Guarantee and the Lease Agreement 

1. A letter of guarantee serves as an additional guarantee from the premises owner that the organization has the right to use it as a legal address. This letter is essential to prevent future legal disputes, as it confirms the owner’s consent to use his property.  

2. The lease agreement significantly confirms the organization has legitimate grounds for using the premises. It considers all the details related to the tenant’s rights to use the premises, which also helps avoid legal problems and ensures transparency in the relationship between the owner and the tenant.

Possible Consequences of an Unreliable Legal Address

Using an unreliable legal address when registering a company may have legal consequences for the organization. The legal norms of the Republic of Belarus regulate the requirements for the location of a legal entity, and the discrepancy between the actual location and the one declared in the Unified State Register can lead to negative consequences.

For example, fines and administrative liability may be one of the consequences. If, during the audit of the tax authorities or other regulatory authorities, it turns out that the company’s legal address is not valid or is fictitious, the organization may be fined. This is especially true in cases where the organization cannot communicate at the specified address or it does not exist.

What to Pay Attention to when Choosing a Legal Address

1. Thorough verification of the legal address

Before registering a company or changing its legal address, ensuring that the chosen location exists and meets all regulatory requirements is necessary. This includes checking the ownership rights and the lease agreement and obtaining the owners’ consent if required.

2. Using addresses verified by government agencies

You should choose legal addresses that have already been verified and do not raise questions from regulatory authorities. For example, these may be rented offices with a proven reputation.

3. Regular checking of the relevance of the data

After registration, it is essential to promptly update the information about the legal address in case of a change to avoid possible legal problems. Notifying the tax service, business partners, and other organizations of any changes is also essential.

Changing the Company’s Legal Address

The articles of association regarding the company’s location do not need to be amended when the location of the company’s management body is changed.  

However, if the legal address changes (for example, the office where the company’s head is located has moved), the registration authority must be notified within 10 working days. After receiving the notification, the registration authority makes appropriate changes to the Unified State Register of Legal Entities.  

Remember that the company’s legal address can be indicated on its official website, in contracts with partners, job advertisements, and labor and civil law contracts. In case of a change of address, it is recommended that appropriate changes be made to such documents and information and that business partners be notified.  

If you have any questions about changing the company’s legal address, our qualified lawyers are ready to help. We will advise, prepare all the necessary documents, and represent your interests to the government authorities.

Practical Recommendations on How to Choose a Reliable Legal Address

Choosing a legal address is crucial when registering a company, and many future business aspects depend on its correctness. Here are some recommendations to help you select a reliable legal address:

1. Verification of ownership or lease rights

The main requirement for a legal address is the availability of documentary evidence of the right to use the premises. This may be a certificate of ownership or a lease agreement. It is vital to ensure the premises are registered in the registry and have no legal restrictions, such as encumbrances or liens.  

2. Availability of infrastructure

Choose a legal address with well-developed infrastructure and good transport links. This will provide convenience for employees and create a positive impression among partners and customers.

3. The reputation of the area

The address is usually chosen in a business, economically active area. This can affect the company’s image and attract customers and partners. For example, the presence of office space in a business center in the city center is often perceived as a sign of the company’s stability and success.

4. Verification of compliance with legal requirements

The address must be valid and allow official communications. It is also worth considering whether the premises can accommodate a legal address, especially if it is a private residential building that cannot always be used legally.

Features of Using Mass Registration Addresses

Mass registration addresses are used to register several companies at once officially. They are usually provided by law firms or specialized agencies that offer company registration services. They are often located in office buildings that provide rental services for registration facilities.

The Use of Mass Registration Addresses has its Characteristics:

1. The risks of verification by regulatory authorities

When using mass addresses, it is essential to understand that tax and other regulatory authorities may pay attention to such companies. If organizations are registered at one address in mass, questions may arise about the reality of doing business there, leading to additional checks and fines.

2. Restrictions on activities

In some cases, if a company is registered at a mass address, there may be restrictions on using this address for commercial activities, such as obtaining licenses or rights to conduct specific types of business.

3. Lack of connection with actual activities

Many companies registered at such addresses do not operate at this location and do not have company management bodies there, which can create problems regarding inspections related to the company’s activities.

To Minimize the Risks when Using Mass Addresses, it is Recommended:

• Regularly check the relevance of the information about the legal address in the registration documents.
• Ensure that there is a real office for the location of the company’s management body and conducting business operations if the company plans to interact actively with counterparties, government agencies, or clients.
• Use the services of verified addresses when landlords can provide guarantees about the legality and legality of using this address for business registration.

Thus, when choosing a legal address, it is essential to consider all possible risks associated with using mass addresses and choose reliable and legitimate options to ensure the company’s stability and security.

Conclusion

A legal address is essential to a company’s registration and operation. The correct choice and registration of a legal address are necessary for a business’s successful operation, as they directly affect its image and interaction with government agencies and counterparties.

When registering a company, it is important to carefully choose a legal address and make sure that all the necessary documents are available, such as a lease agreement or proof of ownership of the premises. It is also worth remembering that using mass registration addresses can lead to risks and possible legal consequences if they do not correspond to the organization’s actual activities.

We recommend that you carefully approach the issue of choosing a legal address and ensure that the information in the registration documents is up-to-date. If you have any questions or need consultations, our experts are always ready to provide assistance in registering a legal address and accompany your company in matters related to changing or confirming the address with the registration authorities.