A virtual office space has become a common choice for modern businesses that want flexibility without the cost of renting physical office space. Many new companies look for a simple setup that supports daily operations without the commitment of long leases.
This makes a virtual office space in Singapore an attractive option. Still, business owners often misunderstand what a virtual office actually offers and what limitations it has. Clearing these misconceptions helps companies decide whether a virtual setup suits their needs.
This guide explains what a virtual office can and cannot do. It also outlines the services included in virtual office packages, what to expect from a virtual office provider, and how these services support business registration and operations.
Virtual offices, despite their name, are literal physical spaces that allow startups and founders to receive mail via the registered address, i.e., the virtual office.
However, because of its nature as a physical space, plus the fact that companies have the address registered to their name, startups have certain misconceptions about what they can and can’t do with a virtual office. For example, some virtual offices provide coworking spaces in addition to their virtual office services. However, some startups have taken this to mean that they could use the virtual office as a physical address where they can hold occasional meetings.
We’ll go through the common misconceptions on what a virtual office can and can’t do. It’s imperative to clarify this information, since business decisions might be made, thinking that a virtual office could serve a specific function when it can’t.
Partnering with a virtual office provides your startup with an office address away from your actual operations. The benefit of this arrangement is that it allows the business to present itself in a business district as opposed to a residential location. It functions as a registered office address and is officially recognised as such.
This makes it easier for international businesses to set up operations and maintain a local presence in Singapore if they choose to expand into that market.
Mail handling is one of the key services offered by virtual office providers. Your business can receive mail at your chosen virtual address, and staff will sort and manage it for you.
Since mail and correspondence would be sent to the registered business address and not the business’ actual place of operations, founders may not be able to receive mail as immediately. As such, virtual office providers manage and forward mail to the business’ actual operating address.
The benefit of this is that the Singapore government, customers, and members of the public can send mail to the business’ registered office address. If the business is operating off a home address, this arrangement can protect the founders’ privacy and personal lives.
Note, however, that forwarding service options vary. Businesses can choose between weekly, monthly, or on-demand mail forwarding. Forwarding fees may apply.
A virtual office offers a professional business address in a strategic location, typically in a business district. For foreign companies, a virtual office space in Singapore can help them gain credibility in the local market.
This helps your brand present a professional presence and improves business credibility. Clients will view your company as more established when it operates from a virtual business address instead of a residential or P.O. box address. This is also helpful for businesses that want to locate themselves in areas associated with commercial activity and business innovation.
Furthermore, these are not empty or placeholder addresses. These are actual physical addresses that can be mailed to and used to register for ACRA. As a result, having a virtual address creates a polished image that helps companies build trust with potential clients.
Some virtual office packages include access to coworking spaces. This gives you temporary physical space when you need a quiet place to work or meet clients. These spaces are available for booking and may require a reservation, depending on the provider’s policy.
Coworking spaces are useful for client meetings, team discussions, or days when you want a change of environment. They offer facilities such as Wi-Fi, printing, and basic office equipment. This helps you work efficiently without renting full private offices or long-term serviced offices.
A virtual office space serves as an address that founders can register for startups. Because of this, there will be crucial business that founders can mistakenly think they can do with a virtual office.
Listed below are misconceptions that founders think a virtual office can do, but can’t. Understanding these limitations will help startups plan around these hindrances.
A virtual office provides a registered business address, but it cannot guarantee successful company registration. Businesses still need to meet the requirements set by the Corporate Regulatory Authority. This includes:
The virtual office address supports only one of the requirements listed above. A registering company must meet all legal requirements to register successfully.
Foreign-registered companies must also follow additional steps to register in Singapore. A virtual address helps them maintain a presence in Singapore, but it does not replace the need for proper licensing or approvals.
The Ministry of Manpower has rules relating to work passes, employment practices, and physical workspace requirements for some jobs. A virtual office space in Singapore does not replace these rules. Companies must still meet MOM standards regardless of whether they use a virtual office or traditional office space.
A business can’t (legally) hire foreign employees under an Employment Pass (EP) or S Pass without MOM approval. MOM requires:
A virtual office cannot fill the gaps above. As such, it’s very uncommon for startups and small businesses to formally hire employees.
A virtual office is not a physical workspace where employees can work daily. It does not offer desks, working facilities, or a full-time, operational physical office space. Staff cannot report to a virtual office daily like they could with a traditional, physical office space.
Companies that need a full physical office and wish to implement an in-person working setup must consider serviced offices or traditional office space instead. A virtual office suitable for remote teams, not in-person working arrangements.
A virtual office cannot store products, equipment, or stock for your business. The provider manages the facility for business correspondence and administrative purposes. Inventory storage requires a warehouse or a physical office with dedicated storage areas. Using a virtual office address for inventory may result in violations of the provider’s terms.
For e-commerce businesses looking to keep stock, having stock in a physical, private office is permissible. However, this arrangement is prohibited for virtual offices, even though they can provide mail handling and storage. The virtual office address is intended for mail, not goods storage.
Also, while some virtual office staff may be persuaded to allow you to place stock in their mailroom, this wouldn’t be ideal, since the mailroom wouldn’t be able to hold much either way. Ideally, businesses selling physical goods will need a separate logistics partner or storage facility.
A virtual office space cannot function as a retail store, outlet, or branch. It cannot serve walk-in customers or conduct physical transactions. The premises are not designed for foot traffic or customer service operations. Using it for this purpose may breach the provider’s rules and create confusion for customers.
If your business needs a physical location to serve customers, you will need a traditional store. A virtual office provides a business presence in a corporate environment, but it cannot operate as a service counter or sales floor.
What companies CAN and CAN’T do with a virtual office space depends on the provider. Different providers offer different virtual office address options, key services, and additional services. Some offer access to coworking spaces or serviced offices. Others focus on basic mail forwarding services and call handling. Your business maintains its flexibility by choosing the right virtual office offers that match your needs.
The best way to understand what a virtual office can do for your business is to speak directly with one. Each business has different needs, and each provider offers different virtual office packages. A brief consultation helps you determine whether the provider can meet your needs.
Parkway Suites is a trusted provider of virtual office services in Singapore. We offer reliable mail handling, administrative support, and virtual office plans suitable for startups and established companies, starting at 13 cents per day. Our address in Paya Lebar Square places your business in a credible location without the cost of traditional office space. If you want a clearer view of how a virtual office supports your business, get in touch with us at Parkway Suites today.
Typically, virtual office providers allow one company per registered address. Check with the provider to see if they support multiple businesses at the same location.
No. To hire foreigners under the EP or S Pass, your company must have a physical commercial office space approved by MOM. A virtual office cannot replace this requirement. However, startups, regardless of whether they’re using a virtual office or a physical one, are free to outsource services to overseas freelancers.
Not always. International mail forwarding may be available as an add-on, and fees vary. Always confirm this with the provider before signing a plan.
Yes. Most providers allow you to upgrade to higher-tier packages to access additional services, such as coworking space, as your business grows.
