Own Offices or c/o Address: Which is the Best Choice for Your Business Domicile?
When choosing a business domicile in Switzerland, entrepreneurs often face a crucial decision: Own offices or c/o address? Each option has its own set of pros and cons, and it’s essential to understand which one is the best fit for your company. In this blog post, we’ll explain the differences between these two options, their legal foundations, and what you should consider to make the right decision.
What Are “Own Offices”?
“Own offices” refer to a physical office space that a company occupies under a legal title, such as ownership, lease, or sublease. This office serves as the center of the company’s administrative activities and must be capable of receiving all types of communications. A typical example of such an address would be:
Muster AG, Bahnhofstrasse 555, CH-6300 Zug
This type of address is considered a standard business address that provides the company with a solid and trustworthy public image. A company with its own offices is often perceived as established and reliable, which can enhance its creditworthiness and the trust others place in it.
What is a c/o Address?
A c/o address is used when a company does not have its own office premises to serve as its registered address. The term “c/o” stands for “care of,” meaning that the company is under the care of a domicile holder. The address would then be listed as follows:
Muster AG, c/o Businesscenter XYZ AG, Bahnhofstrasse 555, CH-6300 Zug
In this case, the name of the domicile holder—whether a person or a company providing the address—is inserted between the company name and the address. A c/o address can be practical for companies that don’t require their own offices or that need to remain flexible due to cost considerations. However, companies with a c/o address are often viewed as less creditworthy, which can affect how they are perceived by business partners and customers.
Legal Basis for Address Choice
Choosing between an own office address and a c/o address is not just a matter of prestige; it’s also about legal compliance. According to the Swiss Commercial Register Ordinance (HRegV) Article 117 Paragraph 3, a company that does not have its own legal domicile at its registered location must provide a c/o address. A statement from the domicile holder is required, confirming that the company is granted a legal domicile at that location.
The Commercial Register Office may also request proof of the existence of a legal domicile. False information in the Commercial Register, such as listing own offices when only a c/o address exists, can be considered deceptive and may be prosecuted. Such violations can result in imprisonment for up to five years or fines.
P.O. Box: Not a Substitute for a Business Domicile
It’s important to note that a P.O. Box address does not qualify as a domicile under the Commercial Register Ordinance. Companies that only provide a P.O. Box address do not meet the requirements for an official legal domicile and risk legal consequences.
Conclusion: Which Option is Right for You?
The choice between owning offices and using a c/o address depends on your company’s specific needs and situation. Own offices offer higher creditworthiness and a stronger market presence, while a c/o address provides flexibility and cost efficiency. However, it is crucial to understand and comply with the legal requirements to avoid potential risks.
If you’re unsure which option is best for your company, or if you need assistance in choosing the right business domicile, our team at deindomizil.ch is here to help. We offer comprehensive services for business domiciles in Switzerland and can assist you in making the best decision for your company.
When choosing a business domicile in Switzerland, entrepreneurs often face a crucial decision: Own offices or c/o address? Each option has its own set of pros and cons, and it’s essential to understand which one is the best fit for your company. In this blog post, we’ll explain the differences between these two options, their legal foundations, and what you should consider to make the right decision.
What Are “Own Offices”?
“Own offices” refer to a physical office space that a company occupies under a legal title, such as ownership, lease, or sublease. This office serves as the center of the company’s administrative activities and must be capable of receiving all types of communications. A typical example of such an address would be:
Muster AG, Bahnhofstrasse 555, CH-6300 Zug
This type of address is considered a standard business address that provides the company with a solid and trustworthy public image. A company with its own offices is often perceived as established and reliable, which can enhance its creditworthiness and the trust others place in it.
What is a c/o Address?
A c/o address is used when a company does not have its own office premises to serve as its registered address. The term “c/o” stands for “care of,” meaning that the company is under the care of a domicile holder. The address would then be listed as follows:
Muster AG, c/o Businesscenter XYZ AG, Bahnhofstrasse 555, CH-6300 Zug
In this case, the name of the domicile holder—whether a person or a company providing the address—is inserted between the company name and the address. A c/o address can be practical for companies that don’t require their own offices or that need to remain flexible due to cost considerations. However, companies with a c/o address are often viewed as less creditworthy, which can affect how they are perceived by business partners and customers.
Legal Basis for Address Choice
Choosing between an own office address and a c/o address is not just a matter of prestige; it’s also about legal compliance. According to the Swiss Commercial Register Ordinance (HRegV) Article 117 Paragraph 3, a company that does not have its own legal domicile at its registered location must provide a c/o address. A statement from the domicile holder is required, confirming that the company is granted a legal domicile at that location.
The Commercial Register Office may also request proof of the existence of a legal domicile. False information in the Commercial Register, such as listing own offices when only a c/o address exists, can be considered deceptive and may be prosecuted. Such violations can result in imprisonment for up to five years or fines.
P.O. Box: Not a Substitute for a Business Domicile
It’s important to note that a P.O. Box address does not qualify as a domicile under the Commercial Register Ordinance. Companies that only provide a P.O. Box address do not meet the requirements for an official legal domicile and risk legal consequences.
Conclusion: Which Option is Right for You?
The choice between owning offices and using a c/o address depends on your company’s specific needs and situation. Own offices offer higher creditworthiness and a stronger market presence, while a c/o address provides flexibility and cost efficiency. However, it is crucial to understand and comply with the legal requirements to avoid potential risks.
If you’re unsure which option is best for your company, or if you need assistance in choosing the right business domicile, our team at deindomizil.ch is here to help. We offer comprehensive services for business domiciles in Switzerland and can assist you in making the best decision for your company.
Contact Us:
- Website: deindomizil.ch
- Phone: +41 (0)41 123 45 67
- Email: info@deindomizil.ch
- Address: Blegistrasse 7, 6340 Baar, Switzerland
We look forward to helping you position your business successfully in Switzerland.