Do you need a business license for a virtual office?
Business
Virtual Offices
If you’re looking into the benefits of a virtual office, you might be wondering if you need a business license to use one. After all, if you’re a freelancer, sole trader, or any other small business, a virtual office will provide you with your official business address, which you can use to receive important mail and phone calls.
In this guide, we’re going to take a look at the requirements needed to use a virtual office, and why getting one can be beneficial for any small business.
7 min read
What is a virtual office?
First of all – what is a virtual office? If you’re unfamiliar with the concept, a virtual office is a service which provides small businesses with a business address, without giving you full-time access to the office building. This is ideal for small businesses that don’t need a full-time office nor brick-and-mortar premises for their services.What does a virtual office do?
Alongside giving your office a business address, a virtual office will also offer certain perks and benefits that you’ll be able to take advantage of in the day-to-day running of your business. These can include:- Telephone answering service. You can’t be at your phone all the time, but missing important phone calls can mean missing out on important clients. With a telephone answering service, the virtual office will redirect all your phone calls and take important messages. A bit like a virtual secretary!
- Mail redirection. Having your home address listed as your business address isn’t ideal when it comes to privacy concerns. A virtual office will redirect any post or mail that arrives at your registered business address.
- Limited use of meeting rooms. Some virtual office packages will also allow you to use their meeting rooms on a limited basis. This can be a great idea if you want to host an important meeting with a client, or meet with an account annually in a professional working space.
So, do you need a business license for a virtual office?
Nope! You don’t need any license to use a virtual office, and there are no other legal requirements that you need to fulfil in order to use one. If you want to use a virtual office, all you need to do is rent one out. That being said, whether you use a virtual office or not, you’ll still need to register any small business that you create in the UK. You’ll need to register with HMRC for tax purposes, and register any limited company with Companies House.Who can use a virtual office?
When you register a business with Companies House, you’ll be required to register an official business address, which will become public once your registration is complete. Many small businesses register their home address as their business address, but this isn’t ideal when it comes to privacy and professionalism. Virtual offices are suitable for various types of businesses, except those who require a full-time physical office presence. Most virtual offices will allow you some access to your business address, but it’s not a full-time traditional rental. You’ll also most likely need to book use of the office in advance, and for most packages, it will be limited to a couple of times per year. Those working as the following can benefit from using a virtual office:- Freelancers
- Sole traders
- Small businesses owners who work from home
- Anyone who works from home
- Independent contractors
- New start ups
- Offices that work 100% remotely