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Legal address and actual. What is the difference?

First you need to find out what these concepts are. In the Ukrainian economic legislation, such phrases have been absent since 2011. But businessmen and legal scholars still use them. The fact is that when registering a new company or individual entrepreneur, you need to indicate the location of the business entity for official correspondence with state authorities. There is an opinion that a law will soon be passed stating that it is enough to provide the Ministry of Justice with your phone number, e-mail, fax and that will be enough. From the point of view of logic, such an approach is impossible in the near future, because in this case the LLC will turn out to be virtual.

How to change the legal address and what is needed for this?

To resolve this issue, you first need to determine what a legal address is. There is no such concept in the official legislation of Ukraine, there is the actual location of the enterprise. This is the place where the company mainly carries out financial and economic activities. You can also often find the concept of a tax address. In fact, they are all the same.

Change of legal address of IE. What kind of service is this?

Recently, there have been changes in Ukrainian legislation that have allowed the registration of an individual entrepreneur not only at the place of residence, but also at the place of rental office. This means that a person can be registered in one city, and open a small business in any other. Therefore, this service has recently begun to gain great popularity. Now it’s enough to rent a virtual office and register in it.

Not so long ago, a loophole appeared in the tax legislation of Ukraine, according to which it is possible to register an individual entrepreneur, or rather IE not at the address of registration. From June 1, 2020 – this has become evident in the card, which is submitted to the state registrar. The point where it was necessary to indicate the location of the individual changed to the location and added the line: “Type of premises”, that is, you can write an office, an office. But we draw your attention to the fact that it is advisable to bring a lease of premises or an ACT on confirmation of ownership to the center for the provision of administrative services. Such a change in regulatory documents provides more opportunities for people who are registered in one city and carry out business activities in another, for example, in Kyiv.

How to get a legal address, this is a frequently asked question from beginning entrepreneurs. Most people think that this service is simple as there are a lot of offers on the market. Indeed, creating a remote office is not difficult. But to make it quality, that is, faster, cheaper, it’s better not for everyone. First you need to rent or buy a room, purchase office equipment, arrange with the mail for the quick delivery of letters, hire an experienced secretary and preferably with a higher education. If after such expenses of money, time and effort it is possible to reach a level better, faster, then such an offer will not become cheaper. It all depends on what kind of service is needed by the entrepreneur himself, who opens a new company or re-registers an existing one.

A sample lease of a legal address for each company looks different. Moreover, it is not always compiled on the same principles. If the cap is the same with the names of the parties, leaders or signatories, then the subject of the contract can radically differ. For example, some write that they provide the buyer with some kind of virtual location on which the businessman can register the company, others draw up a full agreement for the use of the premises with square meters and a list of additional services (information services, use of office equipment, parking, and so on).

Registration of the legal address of an LLC is a fairly common question, but everyone puts his personal understanding or opinion of other, poorly versed people, who often call themselves corporate lawyers, into it. Some imply opening a company, others, renting a virtual office, and others in general, all on a turn-key basis. This discrepancy arose because service sellers cannot really explain to businessmen what they provide, to whom and on what terms. In fact, this concept is divided into two positions: Registration of LLC and lease of legal address. But it always takes place in the district administration and at the notary under one action. They are divided because each position is paid separately. If the first on the Ukrainian market costs almost the same for everyone, then the price of the second can vary depending on the service and location, for example, the cost of such a service in the Pechersky district of Kyiv is significantly different from Shevchenkovsky, although both are in the same city.

The location of the legal entity is the office from which the financial and economic activities of the enterprise are primarily carried out. That is, the administration, director, chief accountant directly works. So the civil code of Ukraine answers the question under consideration. There is a similar definition under the name, tax address, which means the same, but adjusted for reporting to the fiscal service, which also includes customs. Information about the location of the company is entered in the official, publicly accessible base of the Ministry of Justice. This was done to facilitate the search for a company by various authorities with the aim of serving requests, summons, other notifications, and conducting scheduled, unscheduled inspections. Accordingly, if law enforcement agencies did not find the enterprise according to the data indicated in the mentioned service, then the official has the legal right to block the business. Most often through the non-acceptance of invoices in electronic form.

Do I need to make a change in the charter of the legal address or not? If you are not interested in reading this article, we will immediately answer that “Yes” (if the location of your company is indicated in this document) and “No” (if not indicated). But, it is worthwhile to understand in more detail this issue in order not to make mistakes when registering, buying, selling a company. When a person decides to set up his business, he thinks that he will have to dig in a pile of waste paper, which is difficult to dig out and all the more, submit it to the district state administration, fiscal service, licensing authorities and so on. In fact, everything is quite simple. Documents are drawn up by a lawyer and a notary, and if they say that you yourself must organize it, look for other specialists, fortunately, there are enough of them on the market. But, company registration is another topic that we will not touch on today. Let’s take a closer look at the main agenda.

Due to confusion in Ukrainian legislation, entrepreneurs often began to ask: “What is the actual address”. Naturally, we now mean the location of the company. The answer seems simple: “The office where the administration works,” that is, the director, accountant, and other responsible employees. But the civil and tax codes say that in such an office should be the leadership of the company and it is here to carry out financial and economic activities. This means concluding agreements, preparing accounting documents, sending reports to the fiscal service.