In short – yes. Virtual offices are legal to rent, hence why they’re in such high demand for freelances, small and medium-sized businesses. It may be perceived as illegal due to the intricacies and confusions that could arise in response to taxation and business registration laws. Fortunately – this guide will talk through these issues and how to go about hiring a virtual office the right way.
Virtual offices are mainly used to provide the pubic a business address, that in turn helps people see the business is fully established with a local presence. Some firms might not need a physical office to carry out their duties and so they see no benefit in renting out traditional office space. It’s worth reading up on how a virtual office works to make sense of the concerns that are discussed within this guide.
What legal issues surround virtual offices?
Since virtual offices have become increasingly popular, there have been several legislation queries that often leave business owners hesitant to make the move. Below are a few legal considerations to think about before investing in a virtual office:
A registered address
To register a company in England and Wales you must register an address in either of these locations. This is not to be confused with your ‘trading address’ – as this is your primary base of business operations.
Your registered office address does not have to be the address you work from. It is simply the official address for a UK limited company (and be based in the UK). The HMRC, Companies House and UK tax authorities will send all business correspondence to this address. Companies House also display your chosen registered office address online.
Changing your registered address
If the time comes and you must change your registered office address, you must file an AD01 online form on Companies House – this ensures all important documents are sent to the correct address. Should you not receive these important letters then your business falls risk into being dissolved.
Virtual HQ can help you find the perfect virtual office in locations throughout the UK. If you have any questions about how a virtual office works, the legalities involved or want to have a chat – just get in touch.