Setting up a shared office space means that several self-employed people or companies share office space without being linked by company law. The aim is to share costs, capitalise on synergies and create a professional working environment. However, a clear organisational and contractual structure is essential – otherwise, conflicts over costs, liability or use can quickly arise.
Anyone wishing to set up a shared office should, above all, establish clear contractual arrangements, allocate costs transparently, clarify liability issues unambiguously and define organisational responsibilities. A shared office is not a company – it is the joint use of premises with a clear separation between the individual businesses.
A shared office arrangement exists when several legally independent individuals or companies share office space. Each party remains economically and legally independent.
Typical features:
shared use of premises
separate business operations
no shared company name
no joint liability for operational business
This means that a shared office arrangement differs significantly from a civil law partnership or a professional partnership.
There are many reasons for sharing an office:
Reduced rent and operating costs
A professional working environment rather than working from home
Networking with other self-employed people
Enhanced public image
Shared use of infrastructure
Start-up founders in particular benefit from not working alone in separate rooms, but from sharing infrastructure and fixed costs.
A key consideration when setting up a shared office is the drafting of the contract. Even if all parties involved get on well, clear agreements should be set out in writing.
Key points to cover:
Who is the principal tenant under the tenancy agreement?
Is there a sublease agreement?
How are service charges allocated?
Which areas are for exclusive use and which are for shared use?
How long is the agreement valid for?
What are the terms for termination?
A lack of clear provisions often leads to disputes – particularly when a member moves out or fails to make payments.
A common source of conflict in shared office spaces is the allocation of costs. In addition to the basic rent, there are regularly other items of expenditure:
Service charges
Electricity
Internet
Cleaning
Consumables
Shared purchases
Possible models:
Allocation by square metres
Equal allocation
Individual billing for specific services
It is important that the calculation method is transparent and documented.
In a shared office space, each company remains responsible for its own liabilities. However, problems arise when the impression is given to the outside world that they form a single entity.
Therefore:
each company should have its own company sign
each company should operate separately
there should be a clear separation of postboxes
there should be no joint external presence if no partnership exists
An unclear presentation may lead to liability issues in the event of an emergency.
As well as legal issues, day-to-day life determines the success of a shared office.
Key organisational aspects:
Use of meeting rooms
Telephone etiquette
Tidiness in communal areas
Visitor policies
Joint purchases
A simple set of written house rules can help to avoid misunderstandings.
A shared office should project a professional image to the outside world. Customers must be able to clearly recognise which company they are dealing with.
Please note:
separate postboxes
clear signage
separate invoicing
clear legal notice details
Professionalism does not mean presenting a united front, but working alongside one another in a structured manner.
One issue that is often underestimated is leaving a shared office. What happens if a member gives notice or is unable to attend?
The following needs to be clarified:
Who is responsible for paying the remaining rent?
Are there provisions for replacing members?
How is shared equipment divided up?
Are there minimum tenancy terms?
The more clearly these points are settled, the more stable the shared office arrangement will remain.
In practice, similar problems often arise:
no written contract
unclear allocation of costs
joint external representation
lack of provisions regarding termination
emotional rather than objective decisions
A shared office arrangement should be treated like a small organisational project – not as a purely informal arrangement.
Anyone wishing to set up a shared office space does not necessarily have to become the principal tenant of a large premises themselves. In professional business centre set-ups, several companies can work side by side without having to organise complex tenancy arrangements themselves.
At the COLLECTION Business Centre, companies benefit from:
clearly separated units
professional infrastructure
flexible contract models
organised reception and post handling
This effectively creates a shared office space with a professional framework – but without any internal liability or organisational risks between the individual companies.
A shared office is not automatically a co-working space, nor is it a traditional office-sharing arrangement. Whilst co-working often relies on open-plan spaces and flexible daily use, and office sharing focuses more on shared workstations within a single company, a shared office consists of clearly distinct, independent companies that share premises.
The organisational burden here falls more heavily on the parties involved themselves – particularly with regard to the tenancy agreement, cost allocation and liability issues.
Conclusion
Setting up a shared office space can make good financial sense and offer organisational benefits – particularly for the self-employed and smaller businesses. However, clear contractual arrangements, transparent cost-sharing, a clear separation of liability and structured day-to-day processes are essential.
Anyone wishing to reduce the administrative burden can make use of professional business centre facilities such as the COLLECTION Business Centre. There, you can benefit from proximity to other businesses and professional infrastructure without having to set up complex tenancy and organisational structures yourself.