What is a virtual office and what are the top 2 options you can't afford to miss?
To set up a company in Hong Kong, whether it is a limited company or an unlimited company, you need to set up a company registered address. Important letters from the government will be sent to the registered address, and the registered address will be shown in the search system provided by the enquiry. Virtual office is the choice of many start-ups. In this article, we will introduce the benefits of virtual office and the attention of the choice.
Choice of Registered Office
Many people will think of a physical shop or office as the first place to register a company, but for SMEs and start-ups, it is not easy to find a preferred location considering the budget and choice of factors, so where else can a company's registered address be set up?
Where can a company's registered address be located?
According to the Hong Kong Companies Ordinance, a company's registered address must not be located outside Hong Kong and must be a postal address, but there is no requirement as to whether it is a business address or whether it is an actual business address. Therefore, it can be registered asCompany Registered AddressThe options are there:
Physical office or storefront;
Residential;
Virtual Office.
The biggest question is, while physical offices and shopfronts can certainly be registered, can a virtual office be registered as a company address?
Can a virtual office be registered as a company's registered address?
A virtual office can be registered as a company's registered address as there is no restriction that a company must use its registered address as its physical business address.
However, you need to pay attention to whether the operator of the virtual office you are renting has a "Company Service Provider Licence", which is under the Anti-Money Laundering Ordinance. Anyone who operates a business centre or virtual office in Hong Kong without a licence commits an offence. It is an offence to operate a business centre or virtual office in Hong Kong without a licence. It is also an offence if you rent a virtual office without a Company Service Provider Licence.
Virtual Office Selection Guide
Many people would recommend setting up a company in a virtual office, what are the advantages of using a virtual office as a company address? If you decide to use a virtual office as your company's registered office, how do you choose a virtual office and what kind of office services will it provide? Below is a detailed guide to help you find the most suitable virtual office for your business.
Why do I need a virtual office?
Since the establishment of a limited company in Hong Kong requires the registration of a company address, important letters will be sent to the company address, so many people will need a company address for the first time to come across the term virtual office virtual office. In addition to providing an address for the business, virtual office will also provide additional office services, such as mail and parcel collection, professional secretarial services, telephone answering, conference room rental, etc. If the business does not require a physical office, virtual office is an excellent choice for the business.
Benefits of a Virtual Office
Virtual office not only solves the problem of company location, but also has the advantages of low cost, improving corporate image and flexible use of space.
Cost Advantage
Renting a physical office is very costly, not only in terms of rent, but also in terms of décor and furniture, water, electricity and internet charges. Virtual offices have different service plans to choose from, and can cost as little as a few tens to a few hundred Hong Kong dollars, or you can pay for things like a dedicated phone number. The cost difference between a virtual office and a rented physical office is huge, so using a virtual office is much more cost-effective and companies can invest the savings in business development and technical support.
Improvement of corporate image
For enterprises, the facade is very important. When you take out your business card with the address on it in a famous building or a prime location in a core business or industrial area, it can enhance the image of the enterprise and bring a higher degree of trust. Enterprises can find a suitable address according to the type of business, for example, the financial services industry can be located in Causeway Bay, Central, Sheung Wan, etc., while retailers or manufacturers can choose the location of industrial areas.
Flexible leases and space
Flexibility of the virtual office lease can be discussed with the industry on the duration of the contract, usually 6 months to 12 months contract, of course, the longer the term of the lease can provide higher concessions. In addition to the flexibility of time, there is also flexibility in the use of space. Many companies now use video conferencing for meetings, but there is also a need for face-to-face negotiations, some virtual offices provide the service of renting meeting rooms, so that companies can enjoy private meeting space.
What type of business is suitable for a virtual office?
The virtual office is not restricted to start-ups only. With globalisation, the development of the Internet and changes in business models, more businesses no longer need to work in a physical office, but can run their business normally using a virtual office.
Suitable for the type of business that uses a virtual office:
Startups;
Small and Medium Enterprises (SMEs);
Freelancers;
Work from home business;
Establishment of branch offices, etc. by multinational corporations
Notes on Virtual Office Rental
In addition to the need for adequate service offerings, there are two more important points to keep in mind when renting a virtual office:
Choose a supplier with a legal licence
Operating a business centre or virtual office in Hong KongMust hold a Corporate Service Provider LicenceIf a business centre or virtual office does not have a licence, it is an offence. It is an offence if the business centre or virtual office does not hold a licence."Corporate Service Provider LicenceYou are also breaking the law by renting the virtual office!
Understanding Charges
Virtual office services are not free of charge. Before renting a virtual office, apart from knowing what services the other party can provide, you also need to know if there are any hidden charges for the service. Especially if the virtual office is cheap, if it can also provide diversified and comprehensive services, you need to pay attention to whether there is a way to avoid hidden charges in the future or a special way of billing, otherwise you will only be at a disadvantage in the future to pay for the hidden charges.
Other services of the virtual office
In order to meet the needs of different businesses, virtual offices can provide a wide range of supporting services, which are generally charged according to the services provided:
Collection and Despatch Service
As a company's registered address, you are bound to receive a lot of important mail. Most virtual offices will notify you before forwarding your mail, so that you will not miss any important mail.
Call Forwarding Service
Provide a dedicated telephone number for Virtual Office staff to receive calls and forward them to a designated number instantly.
Change of Registered Address Service
Update the address of your business to a virtual office.
Provision of electronic water signs
As required by the Hong Kong Registry, Hong Kong companies are required to display their name at their registered office and business premises in a location where it can be easily seen by visitors, while virtual offices mostly provide electronic water signs displaying your company name.
Corporate Card Printing
Due to the change of company address, the considerate virtual office will also provide company card printing service so that clients can update their card address.
Conference Room Rental Service
As no physical office space will be provided in a virtual office, but taking into account that some clients may need a formal meeting place, single meeting room hire is available as an additional service in some of the virtual office services.
Conclusion
A virtual office in Hong Kong can be used for remote working and renting an office address, allowing businesses to use their capital in other areas in a low-cost way, and also address to improve their corporate image. Even a virtual office can make use of the convenient services of virtual office, such as incoming mail service, cloud office, virtual phone, etc., so that the business can enjoy a higher degree of freedom to develop, but it must be confirmed that the virtual office must hold a "company service provider licence" and the charging method. Lafont Business Consultants can provide you with suitable virtual office services and one-stop company opening and secretarial services, so that you can focus on developing your business without any worries.
Extended reading: "TheHong Kong Company Lazybones】Hong Kong Company Formation Process, Fees, Time and Frequently Asked Questions in One Article》