Did you know we developed Cobot for our own coworking space more than 15 years ago? We’ve personally been through the struggles of starting a new space, and one of the hardest ones were the legal requirements. This is why we have compiled this list of legal requirements (1-Page PDF at the end):
Business Requirements
Legal Structure and Registration
What legal structure fits your coworking space - private business, cooperative (co-op), or a non-profit?
Do you have the required business/trade licenses to operate a business?
Have you researched the mandatory required insurances (for example liability insurance)? Depending on your model, you might also need property insurance, workers' compensation, and more.
Licenses and Permits
If you provide specific services (for example food or hosting events) and the setup of your space (do you own or lease the property?), you may need to obtain specific licenses.
Rental or General Contract Law
If you rent out spaces, it's important to familiarize yourself with the specifics of rental laws to fully grasp your obligations, potential costs, and rights as a tenant. Keep in mind that commercial rentals often offer less protection for renters.
If you have a management agreement for a property, make sure you understand the nuances and legal definitions of your contract fully.
Virtual Office as a Service
We have an entire article about the different legal requirements for offering virtual offices in your coworking space. Check it out here.
Tax Regulations
Have you informed yourself of local taxation laws? Will you do it personally or work with an accountant? Do you know your local or cross-border taxation rules (for international clients)?
Have you registered your business with the appropriate tax authorities?
Sometimes different tax rules can apply for specific services that you might offer (for example, self-served food is taxed lower in Germany)
Invoicing
Can you file and receive invoices? If not, take a look into these helpful articles: The Invoicing Template (Part 1), E-invoices for coworking spaces
Using a coworking management tool can simplify a lot of processes in your new space, for example, invoicing. Consider trying out Cobot and sign up for our 30-day free trial (no credit card required) 🥳
Transparency Rules
Do you know what kind of information you have to disclose about your business? What do you have to include in your service offerings and business communication?
Employer Rules
Are you familiar with local labor laws on wages, hours, and benefits? Make sure your contracts and tax obligations meet legal requirements.
Onsite Requirements
Fire Safety
Most countries require that each building has clear escape routes, proper fire doors, fire extinguishers, smoke detectors, and visible evacuation maps.
Accident Prevention
Ensure member safety by following local accident prevention guidelines, such as managing hazards, maintaining equipment, and providing first aid kits. Important to consider is that different obligations may apply if you are offering makerspaces with specific machinery.
Accessibility
Most countries have certain requirements for accessibility. Your new space must probably have wide doorways and hallways, elevators, height-adjustable furniture, accessible restrooms, signage, and information, etc.
Health Codes
Make sure your coworking space adheres to local health and safety regulations by keeping the space clean, offering sanitizing stations, and ensuring adequate ventilation. Establish clear guidelines for hygiene, occupancy limits, and social distancing when required. Educating members about these practices will help foster a safer and healthier environment.
Workspace guidelines
Depending on your business model this might be a legal responsibility of your customers (companies) or not apply to freelancers, however in order to build a good working environment and a successful coworking space, you should consider providing adjustable furniture, good lighting, a quiet environment, etc.
Environment
In order to ensure your space is not only contributing to your local community but also supporting the environment, you must comply with different environmental laws, depending on your size and location. These might include waste management, recycling, and if you are running a larger coworking business or multiple spaces - environmental compliance laws.
Customers
Running a coworking business means that your customers’ satisfaction is your most important goal. Outside of your day-to-day efforts to provide the best possible environment to the people using your space, your company must comply with a series of customer laws:
Business Contract Law
It is crucial to define a coworking agreement between you and your members. We advise you to operate under a service agreement - it is less complicated and protects you more than a sublease agreement. You can read more in our article about Coworking Service Agreements.
Dispute Resolution Policies (between members)
This is not a must, but we recommend creating Dispute Resolution Policies and adding them to your Terms of Service, to prevent legal complications in the future.
Anti-Money Laundering
If you provide business registration services you might be required to run or provide background checks on your members.
Customer Protection Laws
These laws are more relevant when dealing with freelancers, instead of companies, but you need to make sure you are clear and concise about the services that you provide (in the Terms of Service).
Online Requirements
Privacy & Data
Understand how and where you can store the data of your members and what needs to be deleted once their contract ends.
Cybersecurity
Cybersecurity is a very important topic in today’s world. Protecting your user’s information from malicious attacks is a legal responsibility you have to consider. Scroll down to the “Cybersecurity” section of our Security Essentials article for more information about the topic.
Online Accessibility
Similar to physical accessibility, your company is required to be accessible online to users with different disabilities. We at Cobot already have a comprehensive article on Online Accessibility and the European WCAG 2.1 AA Standard
Feeling ready to start your coworking space? Go for it! It can be one of the most rewarding experiences in your life, and we are happy to be a part of it! Download the free list as a 1-page PDF below.
Want to learn more about Cobot? We are enabling independent coworking spaces to run their operations seamlessly by providing an intuitive and easy-to-use software. Our software also provides an easy-to-use solution for some of your legal processes - Invoicing, Online Accessibility, Cybersecurity, and more.
Book a Free 15-minute Call with our friendly team in your language to learn more 🥳
The 1-Page Legal Checklist for Coworking Spaces
Download the ready-to-print PDF here
Looking for more insights?
Explore our resources, dive into our blog and you can also follow us on LinkedIn and Instagram for updates and inspiration.
From invoicing to member agreements, Cobot streamlines the essentials so you can focus on building your space. Try Cobot for free or book a quick demo with our friendly team to see how we can help!l
FAQ on Legal Requirements to Open a Coworking Space
What business requirements must I meet to open a coworking space?
You need to choose a legal structure (e.g., private business, cooperative, or non-profit), register your business, and obtain required trade licenses. Depending on your model, you may also need liability, property, or workers’ compensation insurance.
Do coworking spaces need special licenses or permits?
Yes, depending on services offered and property setup. For example, food services or event hosting may require additional permits. If renting, you should also understand rental and commercial property laws in your jurisdiction.
What tax obligations apply to coworking spaces?
You must register with tax authorities, comply with local or cross-border tax laws, and understand if different tax rates apply to specific services. Using accounting support or coworking management software can simplify compliance and invoicing.
What onsite safety and accessibility requirements are important?
Coworking spaces must comply with fire safety rules, provide clear evacuation routes, manage accident prevention, and ensure accessibility features like wide doorways, elevators, and accessible restrooms. Health codes require cleanliness, ventilation, and hygiene measures.
What legal agreements should I have with members?
Use a coworking service agreement instead of a sublease. It defines rights, responsibilities, and payment terms. Adding dispute resolution policies to your Terms of Service helps avoid conflicts. If offering business registration, anti-money laundering checks may be required.
What customer protection and transparency rules apply?
You must clearly disclose your services, pricing, and terms. Customer protection laws are especially relevant when serving freelancers. Transparency about your business operations helps ensure compliance and trust.
What online compliance issues should coworking operators consider?
You must comply with privacy and data laws, protect user data from cybersecurity risks, and ensure online accessibility for people with disabilities. Following standards like WCAG 2.1 AA is recommended.
FAQ on Legal Requirements to Open a Coworking Space
What business requirements must I meet to open a coworking space?
You need to choose a legal structure (e.g., private business, cooperative, or non-profit), register your business, and obtain required trade licenses. Depending on your model, you may also need liability, property, or workers’ compensation insurance.
Do coworking spaces need special licenses or permits?
Yes, depending on services offered and property setup. For example, food services or event hosting may require additional permits. If renting, you should also understand rental and commercial property laws in your jurisdiction.
What tax obligations apply to coworking spaces?
You must register with tax authorities, comply with local or cross-border tax laws, and understand if different tax rates apply to specific services. Using accounting support or coworking management software can simplify compliance and invoicing.
What onsite safety and accessibility requirements are important?
Coworking spaces must comply with fire safety rules, provide clear evacuation routes, manage accident prevention, and ensure accessibility features like wide doorways, elevators, and accessible restrooms. Health codes require cleanliness, ventilation, and hygiene measures.
What legal agreements should I have with members?
Use a coworking service agreement instead of a sublease. It defines rights, responsibilities, and payment terms. Adding dispute resolution policies to your Terms of Service helps avoid conflicts. If offering business registration, anti-money laundering checks may be required.
What customer protection and transparency rules apply?
You must clearly disclose your services, pricing, and terms. Customer protection laws are especially relevant when serving freelancers. Transparency about your business operations helps ensure compliance and trust.
What online compliance issues should coworking operators consider?
You must comply with privacy and data laws, protect user data from cybersecurity risks, and ensure online accessibility for people with disabilities. Following standards like WCAG 2.1 AA is recommended.