When you start a new business, you need to choose a location to operate from and inform the relevant government bodies. Depending on the type of business you’re setting up, for example, if you’re a sole trader or limited company, you’ll need a trading address, a registered office address, or possibly both.

In this article, we’re going to take a look at the rules you need to be aware of and the considerations you need to make when choosing between a trading address vs a registered address.

What Is a Trading (Business) Address?

A trading address is the location where a business actually carries out its day-to-day operations. Unlike a registered office address, which is the official address recorded at Companies House for limited companies, the trading address is where the business is physically based for work, sales or customer contact. To some companies, the registered office and trading address may be the same, but they’re often different.

For example, a company might have its registered office at an accountant’s address or a virtual office in London. In contrast, its trading address is the warehouse, shop or studio where it serves customers. Sole traders and partnerships also use a trading address to show where their business activities take place and to register for self-assessment with HMRC.
While residential addresses are legally permitted, they come with drawbacks that many business owners overlook. Our article on correspondence address vs residential address outlines these considerations in detail.

Is a trading address public?

Businesses often make their trading address public so customers, banks and suppliers can get in touch with them. Still, they’re not legally required to be publicly available information, unlike a registered office address.

Can you have more than one trading address?

If your business operates from multiple locations, for example, if you have a chain of shops, then you can have numerous trading addresses.

However, if your business is based out of a single location, you will only have one trading address.

What is a registered address?

A registered company address is the official address of a limited company that must be registered with Companies House.

It is the official point of contact for all statutory correspondence from government bodies such as HMRC and Companies House, and every UK limited company must have one from the moment it is incorporated. The registered address must also be a real physical address in the same jurisdiction where the company is registered, for example, England and Wales, Scotland or Northern Ireland.
We cover this subject in more depth in our article, ‘What is a registered office address?’

Trading address vs registered address: Legal distinctions

So, what’s the difference between a registered address and a trading address from a legal perspective?

The key legal distinction between a trading address and a registered address is in their purpose and the types of business that are required to have them.

A registered address is a legal requirement for all UK limited companies and must be a real, physical address in the jurisdiction where the company is incorporated. It’s used for all official correspondence from Companies House and HMRC, while this address is also placed on the public register and must be kept up to date to avoid fines and other legal repercussions.

By contrast, a trading address is not a statutory requirement, but simply the location where a business operates from on a day-to-day basis. Sole traders and partnerships do not need a registered address with Companies House, but they will use a trading address for correspondence with customers, suppliers and HMRC.

Note that, for limited companies, the registered and trading addresses can be the same.

Registered vs trading address

Registered office

Required by Companies House during company formation
Where the company is set up
For statutory correspondence (mainly letters or notices from HMRC and Companies House)
Considered the official company address

Trading address

Required by HMRC (VAT registration, self-assessment tax return)
Where the activities of the business are performed
For general business contacts (banks, clients, lenders, suppliers, etc.)
Can be the same as a registered office or an alternative address you work from

Situations where you’ll need a trading address as well as a registered address

There are a few different situations where a business might need both a trading address and a registered address.

For example, if a limited company uses a virtual office or accountant’s office as its registered address, it may still want to provide a trading address to suppliers and customers to show where day-to-day activities take place—although this will put your privacy at risk if your trading address is your private residence.

Businesses that operate from warehouses, retail units or studios will also often want to keep their registered address for legal correspondence separate from their trading address when that location isn’t suitable for receiving important mail. Having both ensures you meet statutory obligations with Companies House while also giving clients and partners an appropriate and practical point of contact for your operations.

Business address privacy considerations

There’s no legal requirement for a business to publicise its registered office address or trading address (although the former will be publicly available on the Companies House website). Still, it’s worth considering whether not doing so could damage trust with your customers.

If you don’t have a public-facing address, this could damage your credibility as a business in the eyes of some people, while also giving the impression that you’ll be hard to get in touch with if something goes wrong with a product, delivery or service.

On the other hand, if you don’t have a dedicated office space or virtual office, then you’d need to make your home address public, which carries implications in terms of the privacy of you and your family.

Consider The Hoxton Mix Your Trusted Partner

If you want to secure an address in a prestigious location that you can use for both your registered office address and trading address, do it through Hoxton Mix. You’ll be up and running with your new company address within minutes, allowing you to register your new company with Companies House or start publishing it on your website, email signature, letterheads and more.

Check out our company blog for expert business material on a variety of different topics that you’ll find useful as a new business owner.
You can see just how great value our packages are by reading our in-depth guide on the average virtual office costs, which breaks down everything involved.

Final Thoughts

To conclude, a registered office address is needed for Companies House and HMRC at the company formation stage, while a trading address is needed for clients, banks, agents and suppliers that wish to send you correspondence.

On a final note, remember that you don’t have to place your private residential address on any public registry. Not only is it not safe, but it can also have a detrimental effect on your company’s credibility, and there are convenient and affordable options from address providers like Hoxton Mix.

Ready to explore address alternatives for your business? Discover our virtual address solutions starting from £0.63 a day.

Have questions? Contact us via live chat, call 020 3475 3374 or email help@hoxtonmix.com

FAQ

Is a trading address the same as a registered address?

The main differences between a business registered address vs a trading address lie in their official purposes. A registered address is required by Companies House during company formation, while a trading address is where business activities are principally carried out.

Do I need a registered business address?

Yes, a registered business address is any company’s legal obligation. Every company registered in the UK must have one.

Can I use my home as a registered or trading address?

Yes, you’re legally allowed to use your home address. However, there are many drawbacks. Corporate information is publicly disclosed, which may result in unwanted visitors and unsolicited mail arriving at your home. It also may diminish the credibility of your company, especially if you don’t live in a prestigious area.

In what cases should I have both?

A registered company needs both a registered address and a trading address to operate, but they can be the same address (i.e., the same physical location).

Can I change my registered or trading address?

Yes, you can do it at any time and as often as necessary. The only two requirements are that the new address must be in the country that you operate in, and you must notify Companies House of the change. The procedure itself is simple, and it should take about 24 hours for the registry to be updated.

Is a trading address the same as a business address?

Yes, a trading and business address can be used interchangeably. Basically, it’s an office address from where you primarily conduct business operations. If a client or supplier sends you mail, it will arrive at the trading address.

How important is a trading address?

Your trading address is crucial if you want to be able to receive non-statutory physical correspondence from customers, clients, suppliers or any other stakeholders. However, if you’re a sole trader or operating as a partnership, you will need to register a trading address with HMRC for self-assessment purposes.