What is a Virtual Office?
When setting up a company, you will need an address for company registration. Perhaps the first thought is to register your own home address, but it will cause many problems such as rising house tax and land value tax.
“Virtual Office” is to provide enterprises with various services related to physical addresses and offices, without leasing a physical office, it can save daily operation costs. With virtual offices, employees can work from anywhere.
The virtual office is also called “Business Address Hosting”, “Company Business Registration”, “Tax Registration”, “Operation Office”.
When setting up a company, you will need an address for company registration. Perhaps the first thought is to register your own home address, but it will cause many problems such as rising house tax and land value tax.
“Virtual Office” is to provide enterprises with various services related to physical addresses and offices, without leasing a physical office, it can save daily operation costs. With virtual offices, employees can work from anywhere.
The virtual office is also called “Business Address Hosting”, “Company Business Registration”, “Tax Registration”, “Operation Office”.
What else can a Virtual Office offer?
In addition to the basic services of company address registration, the business center and co-working space will also provide services such as mailing addresses, letter collection, letter mailing, etc.
If sometimes you need a physical office, you can also rent meeting rooms, office space with your co-working space; Tax and legal consultation. and other services can be provided if needed.
In addition to the basic services of company address registration, the business center and co-working space will also provide services such as mailing addresses, letter collection, letter mailing, etc.
If sometimes you need a physical office, you can also rent meeting rooms, office space with your co-working space; Tax and legal consultation. and other services can be provided if needed.
Is it legal to set up a Virtual Office? Will there be any risks?
The address of the business center/co-working space is usually the approved business land, where the tax registration/ virtual office can be legally registered, and there is no legal risk issue.
In fact, a virtual office is a fully functional business address that an entrepreneur can rent for a company. This is the perfect solution for entrepreneurs who like to work in their preferred location and do not need a physical office but need a business address registration company.
On the other hand, set up a virtual office also requires a company to conduct legal business operations to be approved by government.
The address of the business center/co-working space is usually the approved business land, where the tax registration/ virtual office can be legally registered, and there is no legal risk issue.
In effect, a virtual office is a fully functional business address that an entrepreneur can rent for a company. This is the perfect solution for entrepreneurs who like to work in their preferred location and do not need a physical office but need a business address registration company.
On the other hand, set up a virtual office also requires a company to conduct legal business operations to be approved by government.
If you have a need for company/business registration in Taipei or Taiwan, Home Sweet Home Co-working Space will be a good option, which is not only located in the elite area of downtown Taipei, the friendly staff here can also assist entrepreneurs in company establishment, virtual offices setting, business address relocation, and various business problems such as change of business registration.
If you have a need for company/business registration in Taipei or Taiwan, Home Sweet Home Co-working Space will be a good option, which is not only located in the elite area of downtown Taipei, the friendly staff here can also assist entrepreneurs in company establishment, virtual offices setting, business address relocation, and various business problems such as change of business registration.
What costs do you save with a Virtual Office?
Reasons to choose Virtual Office (Business Address Hosting):
 Virtual Office | Physical Office | ||
|---|---|---|---|
| Initial Fee | Monthly Rent | 1500-3000不等 | Prices vary but more expensive |
| office furniture | No need | Need to Purchase | |
| electrical appliances | No need | Need to Purchase | |
| office machine | No need | Need to Purchase | |
| Monthly Additional Expenses | Utilities | No need | Additional payment required |
| Internet fee | No need | Additional payment required | |
| garbage disposal fee | No need | Additional payment required | |
| maintenance fee | No need | Additional payment required |
Choose "Home Address" or "Virtual Office" for business registration?
Home address
Renting address from relatives&friends
Registering a company using borrowed address with available methods include renting an address from relatives and friends, home address for company registration, using rental housing for company registration, or using a business center/co-working space for company registration, etc.
In comparison, a virtual office at a co-working space is an easier and simpler way to quickly register a company.
The biggest problem with using your home address for company registration is taxation. Water charges, electricity charges, land tax, house tax, and house value-added tax will all increase in price. If you rent from relatives and friends, the increased expenses are undoubtedly a debt of gratitude. If you use a rented address, the landlord will not necessarily agree, and even if they agree, the increase in tax will inevitably fall on yourself.
Registering a company using borrowed address with available methods include renting an address from relatives and friends, home address for company registration, using rental housing for company registration, or using a business center/co-working space for company registration, etc.
The biggest problem with using your home address for company registration is taxation. Water charges, electricity charges, land tax, house tax, and house value-added tax will all increase in price. If you rent from relatives and friends, the increased expenses are undoubtedly a debt of gratitude. If you use a rented address, the landlord will not necessarily agree, and even if they agree, the increase in tax will inevitably fall on yourself.
In comparison, a virtual office at a co-working space is an easier and simpler way to quickly register a company.
How does the business registration address affect (house tax, land value tax, utility bills, and homeowner income)?
Housing tax: Self-occupied housing, that is, self-use housing, is subject to a housing tax rate of 1.2%. When a home has a registered company, it will be considered a “non-family use” home. Because part of it is for commercial use, the tax office will consider at least 1/6 of the area as commercial use and levy a house tax of 3% to 5%.
Land value tax: The land value tax for self-use residential land is 2‰. If the company is registered in one’s own home, even if it is not actually in use, at least 1/6 of the land value tax should be changed from 2‰ to 10‰, which is 5 times. For the remaining 5/6, the self-use residential land tax rate of 2‰ will be maintained.
Land value-added tax: Land value-added tax for self-use residential land is subject to a preferential rate of 10% according to the Land Tax Law when it is sold; if the company is registered in one’s own home, 1/6 of the land will be charged 20% to 40% of the land. VAT.
Possible reasons for the rejection of virtual office registration.
(Apply to Taipei City, Taiwan)
Some companies might wondering: “Why my Virtual Office application got rejected by National Taxation Bureau of Taipei？” Below are few possible reasons that your virtual office establishment got rejected:
- For companies that apply for exemption from the use of uniform invoices, the National Taxation Bureau of Taipei generally does not allow them to register in the business center/co-working space by up a virtual office (company with revenue of less than NTD200,000 can apply for exemption from uniform invoices).
- There might be some special industries in the business service items, and companies generally registered in the business center/co-working space can only be used as offices.
- If the company is in import and export trade business, the National Taxation Bureau of Taipei usually does not allow the establishment of a virtual office.
If the export trading company uses the address to register in the business center/co-working space, there will be no tax refund allowed, unless the physical office is rented at the same time; and the importer will be rejected during the review of the virtual office registration because there will be considered no physical storage space, while as a import business company it seems unreasonable. - If the amount of business tax credit is too large, or the business tax declaration is 0, the National Taxation Bureau of Taipei might consider this company with no business activity, and will not approve the company’s relocation or new address registration application as a virtual office.
What are the benefits and advantages of using a Virtual Office?
Improve Business Image
A virtual business address registration provides entrepreneurs with the opportunity to establish a physical presence and enhance the company’s professional image. Entrepreneurs can use this address on company documents, websites, or anywhere they want.
Eliminate Physical Office Costs
Registering a virtual office does not have to pay all the operating costs of the physical space (rent, utilities, administration, maintenance, repairs, business insurance, etc.).
Flexible Workplace
Registering a company with a virtual office allows entrepreneurs to establish a business anywhere in the world, and entrepreneurs can choose to work anywhere they like.
Convenient and Fast Set Up
Setting up a virtual office is often quick and easy because it can all be done online. It is important to communicate and pre-review with the co-working space/business center in the early stage.
Add-on Services
The friendly staff can also assist entrepreneurs with various business problems such as company establishment, relocation, and change of business registration.
What are the benefits and advantages of using a Virtual Office?
Improve Business Image
Eliminate Physical Office Costs
Flexible Workplace
Convenient and Fast Set Up
Add-on Services
A virtual business address registration provides entrepreneurs with the opportunity to establish a physical presence and enhance the company’s professional image. Entrepreneurs can use this address on company documents, websites, or anywhere they want.
Registering a virtual office does not have to pay all the operating costs of the physical space (rent, utilities, administration, maintenance, repairs, business insurance, etc.).
Registering a company with a virtual office allows entrepreneurs to establish a business anywhere in the world, and entrepreneurs can choose to work anywhere they like.
Setting up a virtual office is often quick and easy because it can all be done online. It is important to communicate and pre-review with the co-working space/business center in the early stage.
The friendly staff can also assist entrepreneurs with various business problems such as company establishment, relocation, and change of business registration.
Who is suitable for a Virtual Office?
Freelancers, SOHOs, digital nomad workers
SMEs and Startups
Companies wishing to establish business in other cities,
or liaison offices of multinational corporations in different counties and cities
Early-stage entrepreneurs who need cost savings,
and slash entrepreneurs who need company registration
