By default Magento doesnt show the address fields within “Create an Account”. To make the sign up process more user friendly you can enable the address fields by adding the following:
Simple way to show that is to add the below code in customer.xml or in local.xml
<customer_account_create> <reference name="customer_form_register"> <action method="setShowAddressFields"><value>true</value></action> </reference> </customer_account_create>
Source : http://www.pauldonnelly.net/magento-display-address-fields-in-create-an-account/