The Essentials on the Domiciliation of a Legal Entity

Domiciliation is an essential and mandatory step in creating a legal entity. A legal entity is a group of individuals designed to carry out a common project. There are 2 types of legal entities: public law (the State and its local authorities) and private law. In this article, we will focus on private legal entities, as they are the only ones concerned by direct debit.

What Does the Domiciliation of a Legal Entity Consist of?

The domiciliation consists in attributing to the legal entity a registered office. This defines its administrative and fiscal address. Consequently, this address is used as a reference for sending mail (commercial and administrative), for holding meetings and general assemblies, for receiving visitors and employees.

It is mandatory for legal entities. The domiciliation is chosen according to the type of legal entity, as it can be set up in business premises or another company address.

Who Are the Legal Entities Concerned by the Domiciliation?

It has already been stated that only legal entities under private law are concerned by domiciliation. They can be divided into two groups. On the one hand, those that are profit-making have a commercial vocation and aim to make a profit. These are self-employed entrepreneurs, companies (Limited Liability Sole Proprietorship), commercial companies (Limited Company, Limited Liability Company, Partnership, etc.). On the other hand, those who pursue a non-lucrative goal are not centered on the search for profit. These are trade unions (to defend the interests of a group of individuals) and associations (which practice several activities, such as sports, arts, etc.).

What Are the Formalities of a Domiciliation?

The formalities of a domiciliation depend on the choice of the registered office. First of all, if the selection of the registered office is at the personal residence, the first step is to declare this address to the clerk of the commercial court. The second step is the registration of the legal entity. The latter will then issue a Kbis extract.

Secondly, if the registered office is located in commercial premises purchased or rented by the legal entity, the steps are identical to the first situation. However, you must make your decision known in writing and update the status of your legal entity by indicating the new registered office. Then, you must complete the change of your registered office known to the public and declare it to the clerk of the commercial court.

Thirdly, if the choice of the registered office is made through a domiciliation company, the latter is responsible for carrying out all the necessary steps. However, the legal entity must sign a contract with the domiciliation company and pay for its services.

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What Are the Stakes of Domiciliation?

Firstly, it facilitates the identification of the legal entity, i.e., it allows determining its nationality and legal and fiscal status.

Secondly, the domiciliation allows the legal entity to be registered with the Trade and Companies Register or the Trade Register. The registration gives the legal entity a legal personality distinct from that of its members. This legal personality confers attributes (rights and obligations) to the legal entity, such as the possession of a name, the control of an inheritance, the capacity to conclude a contract, the obligation to pay taxes, and the ability to sue (as plaintiff or defendant).

Who To Call Upon to Domicile a Legal Entity?

Call upon a firm, or a company specialized in registration to register a legal entity. This will allow you to avoid the heavy procedures linked to your activity’s launching and benefit from some additional services, such as the handling and forwarding of mails, secretarial services, and office rental. However, it is also possible to carry out a domiciliation online in less than 5 minutes.

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