Legal address and actual

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.

The difference between the discussed concepts is that one office is remote, there only mail and secretarial services are carried out, unscheduled inspectors are accepted. Another option is an office where the company’s administration, director, accountant constantly work.

The legal address and the actual address do not match. What consequences?

A frequently discussed issue, but really, there is nothing to discuss here. For people who are faced with the tax authorities, they know that problems can be big, namely, blocking invoices up to the cancellation of the VAT payer certificate.

Other consequences:

1. Suspension of the current account (bank employees can check the location of the client);
2. Marking the enterprise as risky (you will have to go to your inspector and solve this issue);
3. Loss of a profitable partner (a representative of the counterparty comes to the legal address in order to check the presence of employees of the future partner there).

Important! In order to avoid unpleasant consequences associated with the location, it is strongly recommended to sign only a lease or sublease agreement with backed up documents of title from the owner. Do not accept a cooperation agreement, such a paper is a fiction.

Legal address and actual address in the same building. What are the benefits?

In fact, there are only positive aspects here. But this is for wealthy people, because it is a little expensive to maintain a separate company premises. You need to hire staff for service, security, office, secretary and so on.

Negative sides:

• You may stumble upon a sudden check from the tax office;
• If criminal proceedings are initiated against the organization, then investigative actions will be carried out at the location of the business, this is a search, seizure, interrogation, and the like.
• Also, do not write off utility bills and flow repairs from the accounts.

The list goes on, but only the founders decide what to choose during the initial registration of a company, a legal address or a real one. Information about the location of the office must be indicated in the USR database.