Establishment Unit vs. Commercial Domiciliation: What’s the Difference?

When setting up or developing a business, it’s important to clearly distinguish between the concepts of establishment unit and commercial domiciliation.

1. Establishment Unit

The establishment unit (EU), also known as a local unit, corresponds to any place of activity that can be geographically identified by an address, where at least one activity of the company is conducted. This could be a headquarters, a branch, an office, a workshop, etc.

Each establishment unit must be registered with the Crossroads Bank for Enterprises (CBE) and receives a unique identification number.

The registration of an establishment unit entails several obligations:

• Compliance with local regulations (urban planning, environment, etc.)
• Declaration of workers to the National Social Security Office (NSSO)
• Payment of local taxes

2. Commercial Domiciliation

Commercial domiciliation is the administrative and official address of the company. It is the address where official mail, summons, and notifications are sent.

Commercial domiciliation can be different from the establishment unit. It can be located at the company’s head office, with a commercial domiciliation service provider, or at another address.

The choice of commercial domiciliation is important for several reasons:

• Company image: A prestigious domiciliation can enhance the company’s image.
• Confidentiality: Commercial domiciliation can help to protect the privacy of the director’s personal address.
• Flexibility: Commercial domiciliation can be a flexible solution for nomadic companies or those that do not need physical premises.

3. Summary Table

4. Conclusion

Establishment units and commercial domiciliation are two distinct but complementary concepts. The choice between them will depend on the specific needs of the company.

In case of doubt, it is advisable to seek advice from a business creation expert.