Two companies in the same premises: what the law requires

Updated March 2026 - Having two companies at the same address is often possible, but the answer depends entirely on the nature of the arrangement. There is a significant legal difference between a shared registered address (domiciliation), a genuine shared occupation of workspace, a subletting arrangement, and a cost-sharing agreement with re-invoicing. The practical question is not just the address — it is the framework governing how the space is actually used.

See also postal proxies and correspondence management, characterising a business correctly and tax and social compliance questions.

Companies and their advisors regularly conflate four distinct arrangements that carry different legal, fiscal and contractual implications:

• ▸shared registered address only: both companies use the same postal address as their legal registered office, but operate from different physical locations. This is the simplest case, but it must still be authorised by the lease or by the building management rules;
• ▸genuine shared occupation of workspace: both companies physically share offices, meeting rooms or facilities. This requires a clear framework — who occupies what, when, and on what terms;
• ▸subletting: one company subleases part of the space it occupies to the other. This requires an explicit authorisation from the landlord and a written sublease agreement — subletting without landlord consent is a serious lease breach;
• ▸cost-sharing with re-invoicing: one company bears the lease and occupancy costs and re-invoices a share to the other. This is a legitimate arrangement but requires proper documentation, a re-invoicing agreement and consistent VAT treatment.

The legal and fiscal risk arises most often when the arrangement is organised informally — by habit, verbal agreement or assumption. Specifically, the framework must be coherent with:

• ▸the lease agreement: does it permit sharing, subletting or making the space available to third parties? Most commercial leases contain restrictions that must be explicitly checked;
• ▸the landlord's authorisation: even where the lease permits shared use, the landlord must formally authorise any subletting or third-party occupation;
• ▸billing and re-invoicing logic: if costs are shared, the re-invoicing basis, the amounts and the VAT treatment must be documented and applied consistently;
• ▸proof of registered office or place of business: each company must be able to demonstrate its right to occupy or use the relevant address — for tax, legal and administrative purposes.

Hayot Expertise advice: the real risk almost always appears when premises sharing has been organised informally, without a clear written framework or a coherent billing logic. When a tax audit or a dispute arises, the absence of documentation is treated as an absence of rights.

We recommend systematically verifying four elements before relying on any shared-premises arrangement:

1. ▸the title of occupation: what is the legal basis on which each company occupies or uses the space?
2. ▸the lease clauses: what does the commercial lease actually say about sharing, subletting and third-party use?
3. ▸the cost-sharing modalities: if costs are shared, is the re-invoicing basis documented, legally sound and fiscally consistent?
4. ▸the consistency of the legal formalities: are both companies' registered offices, tax domicile and operational address declarations aligned with the actual situation?

We can help you review the legal framework and secure the documentation that protects both companies.

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In 2026, two companies operating from the same premises is often perfectly workable — but not without proper verification. The legal security comes from the lease, the documented occupation arrangement and the evidence trail.

Want to validate your setup before formalising it?
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