Accommodation Address

Corporate formation companies will often offer as part of their services to operate an address or mailbox for companies they form, which will receive and forward mail, possibly even providing a telephone answering service and hosting a website. Sometimes this will extend to offering nominee directors.

Certain accommodation addresses, sometimes known as red-flag addresses, have become sufficiently infamous with the legal profession, regulators and law enforcement that they tend to trigger suspicion – lawyers may suggest a background check or even avoiding doing business with a person or entity that offers such an address. Red-flag addresses are found in a large number of jurisdictions – the authors won’t name those they regard as red-flags to avoid claims of defamation by the corporate formation companies at issue, but regularly advise clients when such an address comes up in a matter or transaction.

 

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