In short
In a condominium, a residential-use clause restricts the carrying on of an activity, not the mere registered-office address (Cour de cassation, 3e chambre civile, 25 février 2016, n° 15-13.856). For a company, when a clause in the lease or the bylaws stands in the way of the domiciliation itself, it is limited to five years and requires prior written notice (code de commerce, article L123-11-1). A sole trader may declare the address of their home as the business address with no time limit (article L123-10).
You want to set your company's registered office at your home, but you live in a condominium, or you are a tenant. The real question is not "am I allowed to run a business from home": we covered that in the five-year rule. It is "can my condominium bylaws or my lease prevent me from doing so". The answer lies in a distinction that almost everyone confuses, and that the Cour de cassation has settled.
The residential-use clause: what the condominium bylaws can (and cannot) prohibit
Condominium bylaws cannot prohibit everything. The loi du 10 juillet 1965 sets the limit: they may not impose any restriction on co-owners' rights other than those justified by the intended use of the building (article 8). The "residential-use clause" is merely an application of this principle: it ties the use of the lots to a residential purpose.
You still need to know which one, because there are two, and the nuance matters. The so-called simple residential-use clause tolerates the liberal professions but rules out commercial and craft activities. The exclusive, or absolute, residential-use clause prohibits any professional activity, even a liberal one: the building is reserved for housing.
There remains the decisive point for a registered office. A residential-use clause targets the carrying on of an activity, and the Cour de cassation drew a clear conclusion from this: in a ruling of 25 février 2016, it held that establishing a company's registered office in the home rented by its legal representative does not bring about any change in the use of the premises, provided that no activity is carried on there, with no office staff, no clients, no goods and no disturbance to the neighbours. The residential clause had not been breached. In other words, a residential-use clause does not, on its own, prevent you from setting your registered-office address there.
Registered office or activity: the distinction that changes everything in a condominium
Everything turns on one boundary. Establishing the registered office there means declaring an address: administrative mail arrives there, the company can be reached there. Carrying on an activity there means receiving clients, storing goods, employing staff, putting up a sign. An address declared to the registry does not alter the use of the home; an activity actually operated does, and it is that activity the bylaws govern.
The "code de la construction et de l'habitation" follows the same logic. It allows a professional activity, even a commercial one, to be carried on in part of a residential unit that remains the main home, without receiving clients or goods there, but only where no provision of the lease or the condominium bylaws stands in the way (article L631-7-3). The private clause is therefore expressly reserved for the activity. For the address alone, it almost never bites; for an actual activity, the assessment is made case by case, and an exclusive clause may be enough to prohibit it.
Tenants: setting your registered office without being in breach
If you rent, your lease comes into play. The loi du 6 juillet 1989 requires you to use the premises in accordance with the purpose set out in the contract (article 7). A strictly residential lease may therefore stand in the way of operating an activity at your home.
The "code de commerce", however, leaves an opening for the registered office. Its article L123-11-1 allows a company to set up its registered office at the home of its legal representative, and even to carry on an activity there, unless a legislative provision or a contractual stipulation says otherwise. Two cases arise. If your lease or your bylaws stand in the way only of the activity, they do not bar the mere domiciliation, which remains possible with no time limit. If, on the other hand, a clause expressly stands in the way of the domiciliation or the registered office of a company, the home-based setup becomes temporary: it is then capped at five years from the creation of the company, under the mechanism detailed in the five-year rule, and requires prior written notice. Reassuring for the landlord: this domiciliation entails neither a change in the use of the building nor the application of the commercial-lease regime.
Company or sole trader: who is really hampered by the clause?
When faced with a clause in the bylaws or the lease, a company and a sole trader are not in the same position. The sole trader has a margin that the law reserves for them. The "code de commerce" refers to the trader, but the same logic applies at the one-stop shop for any entrepreneur: where they have no business premises, they may declare, as the sole business address, that of their home (article L123-10). This mere declaration of address is not conditional on the absence of a clause to the contrary, nor is it limited in time.
| When faced with a clause | Company (legal representative) | Sole trader |
|---|---|---|
| Legal basis | C. com. art. L123-11-1 | C. com. art. L123-10 |
| Registered-office address at home | yes, unless a clause stands in the way of the registered office | yes, as the business address |
| Clause targeting only the activity | no effect on the address alone | no effect on the address alone |
| Clause standing in the way of domiciliation | possible for 5 years, then move the registered office or regularise, failing which there is automatic removal from the register | the mere address remains possible |
| Notice to the landlord or managing agent | yes, in that case | not required for the address alone |
Notice to the managing agent or the landlord: when, how, and what it is not
This notice often causes needless worry. It is owed in only one case: where a legislative provision or a stipulation in your lease or your bylaws stands in the way of the domiciliation. Without a clause of this kind, no notice is required.
When it is required, three markers. To whom: the landlord, the condominium association, or the representative of the property complex. When: before filing the application for registration or amendment. In what form: the code requires a writing; a registered letter with acknowledgement of receipt is not mandatory, but it dates and proves the sending, which makes it good practice.
Above all, this notice is information, not a request for consent. You do not have to obtain the green light from the managing agent or the landlord: you inform them. The mayor's authorisation for a change of use is a separate regime, reserved for certain large municipalities, and it never overrides a private clause of the bylaws.
When an approved domiciliation company solves the problem
Sometimes home is not the right door: an exclusive clause that locks everything down, an uncooperative lease, the wish not to expose your personal address, or the need for a stable address beyond five years. An approved domiciliation company then cleanly answers each of these situations.
It provides a business address that depends neither on your condominium bylaws nor on your lease, and is therefore shielded from any action by the co-owners' association, which does nonetheless have standing to enforce the bylaws in court (loi de 1965, article 15). This address is permanent, with no five-year cap, and it keeps your home out of the public registers, a subject we detail in protecting your personal address. In return, the domiciliation provider must be approved by the prefecture, which is a safeguard and one of the points to check before signing, as we explain in the five points of a domiciliation contract.
Let us be honest about its limits: a domiciliation address does not give you any more licence to carry on a noisy activity at home, and it does not replace premises if your trade requires them.
Key takeaways
- A residential-use clause restricts the carrying on of an activity, not the mere registered-office address (Cour de cassation, 25 février 2016).
- The simple residential-use clause tolerates the liberal professions; the exclusive clause prohibits any professional activity.
- For a company, a clause standing in the way of domiciliation limits it to five years and requires prior written notice (code de commerce, article L123-11-1); a clause that targets only the activity does not affect the address alone.
- A sole trader may declare the address of their home with no time limit (article L123-10).
- Notice to the managing agent or the landlord is information, never a request for authorisation.
- If the bylaws or the lease lock things down, or for a stable and confidential address, an approved domiciliation service is the safe route.
Frequently asked questions
- Does a residential-use clause prevent me from placing my company's registered office at my home?
- Not in itself. A residential-use clause governs the carrying on of an activity; it does not bite on the administrative address alone. The Cour de cassation has held that domiciliation without any actual activity, without clients or goods, does not change the use of the premises. As soon as you actually carry on an activity in the home, however, the clause, especially an exclusive one, regains its full force.
- Do I have to ask the managing agent or my landlord for authorisation?
- No. Where a clause in your lease or your bylaws stands in the way of the domiciliation, the code de commerce only requires you to inform them in writing, before registration. It is information, not a request for consent. Without a clause of this kind, no notice is even required.
- How long can I keep the registered office at my home?
- With no clause to the contrary, without limit. If a clause stands in the way of a company's domiciliation, it is capped at five years from creation, and no later than the end of your occupancy. A sole trader is not subject to this time limit for the mere address.
- I am a tenant: can I still establish my company's registered office at my home?
- Yes, the code de commerce allows it, unless the lease stipulates otherwise. If the lease stands in the way, domiciliation remains possible on a temporary basis, with written notice to the landlord. Be careful, though: declaring the address is allowed, but carrying on an activity that the lease does not authorise may justify action by the landlord.
Main sources verified in autumn 2026: loi n° 65-557 du 10 juillet 1965, art. 8, 9 et 15; loi n° 89-462 du 6 juillet 1989, art. 7; code de commerce, art. L123-10, L123-11-1 et L123-11-3; code de la construction et de l'habitation, art. L631-7-3; Cour de cassation, 3e chambre civile, 25 février 2016, n° 15-13.856. This article describes the state of the law and does not replace a review of your situation.
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