Why the Registered Address of a Company Matters – and What It Means for Us as Entrepreneurs and Freelancers
If you're building your business honestly – from your apartment, a coworking space, a studio, or a small office – this topic concerns you too.
Lately, there has been an increasing number of companies registered at addresses where they don't actually operate. These are known as "virtual addresses" – typically registered at notary offices, accounting services, law firms, or even private residences – often without the knowledge or consent of the actual property owner.
At first glance, it might not seem like your problem. But when you dig a little deeper, you'll see why it should concern you.
What Are Virtual Addresses – and Why Are They a Problem?
Virtual addresses are used to avoid obligations that the rest of us pay:
📌 No rent tax is paid.
📌 No actual business activity is conducted.
📌 No equal conditions for everyone.
Meanwhile, we’re the ones who regularly sign contracts, report activities, pay rent, taxes, and utility bills. And while we do all this, other companies – often competitors – are officially operating from addresses that exist only "on paper." Oversight is difficult, and budgets and market balance suffer.
Why Should It Concern Us, Who Are Building Our Businesses with Integrity?
Because we’re not playing the same game.
The law, as it currently stands, allows practices that undermine trust and fairness.
Imagine you’re looking for a new business space, but your potential client or partner is already "operating from a lawyer’s apartment" and isn’t paying rent. Or you’ve registered your business at your home, reporting everything properly, while another company operates virtually, yet is treated as if they have the same obligations as you. They don’t.
What Do We Propose?
It’s time to clearly define what constitutes a company’s registered address – and introduce measures to prevent abuse. Here are specific suggestions:
-
Registered Address = Actual Business Location
Not just an empty address, but your actual place of business. -
Proof of Space Usage
When registering, a document (e.g., lease agreement or owner consent) should be provided. -
Alignment of Address with Activity
If you're a creative entrepreneur, you won't register a warehouse in your garage if you're not working there – this should apply to everyone. -
Increased Oversight in Areas with Frequent Virtual Registrations
In cities or locations where 50+ companies are registered, but no one actually shows up. -
Obligation to Report Address Changes
The tax authorities and local institutions must know where businesses are actually operating.
What Would We Gain from This?
✅ A fairer market
✅ Greater legal security
✅ Transparency among those of us who are playing by the rules
✅ A real opportunity for competition – without hiding behind fake addresses
Conclusion
This initiative is not an attack on small businesses – on the contrary, it’s a defense for all of us who work with trust, responsibility, and transparency.
Because if you're already paying for your space, investing in growth, and communicating transparently, you deserve for others to play by the same rules.
It’s time to stop the practice of virtual addresses. And to make honest work pay off again.