The c/o fiduciary domicile: how it works
When a company has no offices of its own, it can establish its registered office at a fiduciary (trust company): this is the so-called “c/o” domicile. The company is entered in the commercial register at an address belonging to a service provider, who handles its correspondence. It is a widespread and entirely legitimate solution, but it must be set up with a clear contract and in compliance with the rules. Let’s look at how it really works.
What “c/o” domicile means
“C/o” (care of) indicates that the company is domiciled at the premises of a third party. In the commercial register the address typically appears as “c/o [name of fiduciary], street …, municipality”. The company exists and operates independently: the fiduciary provides the legal address and the mail services, it does not run the business.
This is the typical arrangement for holding companies, service companies, digital businesses and start-up-phase enterprises that do not need operating space but must nonetheless have a valid registered office.
What the domiciliation contract covers
The relationship rests on a written domiciliation contract that defines services and responsibilities. It generally includes:
- a legal address registrable in the chosen municipality;
- receipt of mail and official notifications, with scanning and forwarding;
- management of contact points and, if agreed, a telephone contact;
- prompt forwarding of documents and deadlines (tax authorities, courts, register).
Punctuality in handling notifications is essential: an official communication not passed on in time can cause a deadline to lapse, with legal consequences.
Anti-money-laundering duties
Anyone offering domiciliation on a professional basis is required to comply with anti-money-laundering duties (AMLA). Before accepting the mandate, the fiduciary carries out due diligence: it identifies the partners, directors and the beneficial owner, verifies the origin of the funds and the nature of the activity. This is not bureaucracy for its own sake: it protects the reputation of the domiciled company and the soundness of the banking relationship. Expect, therefore, requests for documents and transparency about the structure.
Domicile and economic substance
The c/o domicile satisfies the formal requirement of an address, but it does not by itself create economic substance. If the activity is genuinely carried out in Switzerland and decisions are taken on Swiss soil, domicile at a fiduciary is entirely adequate. If, however, the company is run from abroad and the Swiss registered office is purely formal, the domicile is not enough to withstand a tax challenge on effective residence. Domicile is therefore often combined with other elements of substance, such as a resident director and real activity.
Liability and limits
The fiduciary that domiciles a company is not liable for the company’s activities and does not manage it: it provides an address and a contact point. Management, accounting, tax obligations and decisions remain with the company’s bodies. At the same time, the domiciliation provider has an interest in knowing the activity it hosts, and it is normal for it to ask for updates: a serious domicile is never an anonymous mailbox.
Mistakes to avoid
- Thinking that a c/o domicile by itself creates economic substance: real activity is needed.
- Underestimating the handling of notifications: set out forwarding times and methods in the contract.
- Refusing AMLA due diligence: without transparency the relationship cannot start.
- Choosing a domiciliation provider on price alone, disregarding reliability and service continuity.
In summary
The c/o fiduciary domicile is a legitimate and efficient solution for giving a company a valid registered office without offices of its own. It works well when supported by a clear contract, by compliance with anti-money-laundering duties and, where necessary, by elements of economic substance.
Do you want a reliable registered office with mail handling and full compliance? SIH ONE’s domiciliation division offers domicile, correspondence handling and administrative support for your company.