In today's dynamic, fast-paced and fiercely competitive business landscape, entrepreneurs and companies are constantly seeking novel solutions to optimize resources, minimize expenditures and project a professional image. Operating coworking office spaces as registered workplaces is one such solution gaining popularity. As you contemplate a coworking space for your registered office, it is essential to understand the regulatory compliance requirements and how to navigate them.
Coworking Space for Company Registration
In India, the Companies Act 2013 governs the registration and operation of companies. The key requirement for incorporating a company in India is having a registered office, which is the official address of the company, where all legal communication and notices can be sent. The registered office must be a permanent address and cannot be a temporary one. The address of the registered office must be disclosed in the company's Articles of Association and other statutory filings.
Regulatory Compliance: Operating a Registered Office in a coworking space
Explore the key aspects of maintaining compliance and running a registered office smoothly in a coworking space.
1. Permanent address requirement
The registered office address of a company must be a permanent address and not a temporary one. The coworking space must own the premises and the agreement is done to use the coworking office address as your company's registered office.
2. Rental Agreement
A copy of the rental agreement is required to register a company using a coworking space as its registered office. The rental agreement is executed between the owner of the property and the owner of the company. A coworking space agreement is not the same as the required rental agreement.
3. Non-Objection Certificate
A Non-Objection Certificate (NOC) from the legal owner of the coworking space is required, permitting the use of their property as a registered office for a company. This document must be signed, dated and attached Spice Part B at the time of Incorporation and in INC-22 any time after the incorporation.
4. Utility bill
A utility bill from the past two months is required to register a company using a coworking space address as its registered office address. The names on the utility bill must match the property owner's name. This bill may also required when opening a bank account and availing of other official services. Kindly note that, MCA accepts Electricity Bill/ Mobile Bill/ Telephone Bill/ Gas Bill as the Utility Bill.
5. Memorandum of Association (MoA)
Disclose the state of the registered office address in the company's MoA, as required under the Companies Act, 2013 under the IInd Clause.
6. Form INC-22
Attach the NOC and rental agreement to Form INC-22, filed with the Registrar of Companies (RoC) for registering a company's registered office.
7. GST Registration
If applicable, register the company with the Goods and Services Tax (GST) department using the coworking space address. GST Registration is compulsory for various types of businesses.
8. Shifting to Registered Office
If you are shifting to a registered office in a coworking space, get the company's board of directors' approval and file the necessary documents with the RoC.
9. Branch/ Liaison/ Project Office Registration
If you are setting up a branch/liaison/project office in a coworking space, file the required forms and documents with the RoC.
10. Compliance with Local Regulations
Ensure that the coworking space complies with local municipal and zoning laws and building safety and occupancy requirements.
What Are the Steps to Register a Company in a Coworking Space?
A step-by-step guide is provided below to register a company in a coworking space:
Step 1. Choose your coworking space
With abundant options available, choose a coworking space that fosters creativity, collaboration and productivity and aligns with your business goals.
Step 2. Select your company Structure
Before registering your company, determine the business structure, Private Limited Company, Public Company, Limited Liability Partnership (LLP), or enterprise type you want to establish.
Step 3. Name your Startup
The company name should be unique and easy to remember. Make sure to check if the name is available before finalizing it on the MCA website https://www.mca.gov.in/mcafoportal/showCheckCompanyName.do and Trademark Registry at https://ipindiaservices.gov.in/tmrpublicsearch/frmmain.aspx
Step 4. Obtain Digital Signature Certificate (DSC)
A Class III DSC verifies the authenticity of documents filed electronically. All directors of the company must obtain a DSC.
Step 5. Compile the Incorporation documents
There are various documents required for Company Registration and thus it becomes necessary to make a checklist of the same so that the Incorporation forms are appropriate and same can be approved easily.
Step 6. Register on the MCA portal
Once you have obtained your DSC, register it as Business User on the MCA portal and then file all the necessary forms which includes Spice Part B, INC-33, INC-34, Agile Pro S and INC-9 and pay the company registration fee.
Step 7. Filing of Form INC-22
If you have shown Correspondence address in Spice Part B, it becomes essential that you execute all the Registered office proof with your co-working space within 30 days of incorporation and file the same with the Registrar of Companies (RoC).
Step 8. Open a bank account
To run your business, it is a must have a bank account with the company's name to carry out financial transactions. While going for Company Registration, Agile Pro S also asks you for your choice of selecting the bank. However, kindly note that there is no compulsion to continue with the same and you can open current account in any bank of your choice.
¶ Compliance Calendar has partnered with HSBC Bank as Beyond Banking Partner where you get Zero Balance current account with no maintenance charges and host of benefits like Free Subscription to Zoho Books (Professional Version) for one year, Free Day Passes from WeWork. What is more exciting here is that you get complete account opening process digitally with 100% online on-boarding process and there is no need to visit branch unlike other banks. Feel free to reach out to info@ccoffice.in if you need more information on this.
Step 9. File INC-20A and Obtain necessary licenses and permits
Once your current account has been opened, it is must to deposit share capital money as per MOA Subscriber Sheet by all the shareholders and file INC-20A (Declaration for Commencement of Business). Further, Depending on the nature of your business, obtain all the licenses and permits to start operations.
Step 10. Set up your workspace
Once the paperwork is done, it is time to set up your workspace in the coworking space. You can choose from diverse options based on your requirements and budget.
With myHQ, you can set-up your workspace hassle-free. Just go to their website and choose a space that suits your needs or contact their sales team and they will walk you through the process and ensure that the registration is done smoothly.
Benefits of Operating a Registered Office in a Coworking Space
Discussed below are the benefits of operating a registered office in a Coworking space.
- Cost-effective solution: Renting a coworking space as a registered office is more affordable, as it eliminates the need for a security deposit, maintenance fees and other overhead costs.
- Flexibility: Coworking spaces offer flexible rental plans, allowing companies to scale up or down as needed without incurring hefty penalties or long-term commitments.
- Professional image: A registered office in a coworking space located in a prime business district can enhance a company's reputation and credibility in the eyes of clients, investors and other stakeholders.
- Networking opportunities: Sharing a workspace with other businesses and professionals can open up opportunities for networking, collaboration and learning.
- Access to amenities: Coworking spaces usually provide access to a range of amenities such as high-speed internet, meeting rooms, printing and scanning facilities and kitchen services, which can benefit a company's operations.
- Compliance with legal requirements: Using a coworking space as a registered office helps companies meet their legal obligations under the Companies Act, 2013, as long as the necessary documentation and formalities are in place.
- Privacy and security: Coworking spaces often provide dedicated mail handling and receptionist services, ensuring that sensitive business correspondence is handled securely and privately.
- Convenience: With coworking spaces located in various cities and regions, companies can easily establish branch offices or expand their operations across the country.
Using a coworking space as a registered office can be a cost-effective, flexible and professional solution for businesses seeking to optimize resources and comply with legal requirements. By following the steps outlined in this article and considering the available choices, companies can get the most suitable registered office arrangement for their needs. As the business landscape evolves, coworking spaces and virtual offices are set to play an increasingly important role in facilitating company registration and growth. You may visit Co-working Space Partnership to learn more about our ecosystem partnership with Co-working Spaces.