Do Your Business Need a Virtual Office? Check Advantages & Disadvantages

As the name says, a virtual office is an office where you can get the facilities for getting an address, phone number for communication etc. but you are not provided with dedicated office space.

Virtual offices are much cheaper than a real office. A real office can be replaced with a virtual office in case you can’t afford a real office but still need an office address so that you can show this address to your clients or even use the address in your visiting card.

There may be many other reasons than affordability to go for a virtual office.

There are number of virtual office providers in India. Virtual office comes with different price according to services you want to enjoy.

Nature of your business decides whether you want to go for a virtual office or not.

virtual office

Before you try to find a virtual office, you need to know its advantages and disadvantages. Here in this article we look at some advantages and disadvantages of a virtual office-

Advantages of Virtual Office

There are some great advantages having a virtual office.

No Commuting

The first great advantage is that you do not need to commute for long hours and it saves a lot of time. You do not waste your precious time in traffic jam.

Both morning and evening you get extra 2 to 3 hours to work because you and your employees need not to travel in morning and evening.

Hence you also save the environment by not polluting it. This could be the first and obvious advantages of a virtual office.

Getting a Business Address on Prime Location

You can imagine how much money you need to pay for rent and deposit if you want an office in Bandra-Kurla Complex. Most of the virtual office providers are located in some of the best locations where even a mid-sized company can’t afford a real office.

So, the first serious advantage of virtual office is that you get a professional business address at a prime location. Your business can get a boost when your clients find that your business is located in some of the best location in your city.

An office address will tell your client that you are serious about your business and enhance your value. You cannot let your client know that you are running your office from a basement or home.

You get business address like any other professional companies have.

Enormous Savings and No Risk

This is perhaps the biggest advantage of having a virtual office. You save a lot of money because you do not have to invest money in physical office and other items.

The price compared to having a real office space is very less and you get an office address without paying much. No equipment, furniture etc.

You can also avail many other facilities like hiring someone to answer your calls, send and receive emails on your behalf, use the office space as per the need with wi-fi, lounge and refreshment facilities.

Moreover the risk involved is very less because if your business fail nothing is on stake. It is because you did not invest in a physical office space to begin with.

Connect and Work with Employees From all Over the World

The last advantage is you get to connect and work with employees from all over the world. Since it is a virtual office and employees can work from their home so they do not have to come to office.

Therefore you can have best of employees and colleagues from around the world. It help to you learn more increase your productivity. So virtual office connects you with the world.

Disadvantages of Virtual Office

Now we shall also look at some of the disadvantages of virtual office.

No Centralization

The first disadvantage with virtual office is that you do not have any centralized office. If your clients want to visit your office then you need to fix an appointment on a particular date.

Moreover, you do not have a command and control structure like a regular business where there is a fixed office space.

Decreased Productive because of No Work Culture

Virtual office has no work culture and this is the serious problem with virtual office. You and your employees work from the comfort of your home and you fail to develop a work culture like any other professional company with few or dozens of employees.

Work culture could make or break a business. Hence if your business is a start up then you need to develop a work culture.

Lack of Interaction with Employees hence NO Team Work

You hardly interact face to face with your employees and other colleagues. If there is no interaction between your employees then there is no team work.

No one knows what others are doing and they cannot share something productive. Lack of team work reduces your productivity and success of your business.

Reason is employees lives here and there and not at one place.

Low Morale of Employees and No Inspiration

The last disadvantage is probably your employee suffer from low morale because of not motivation and lack of inspiration.

Virtual office does not give you a feeling that you are working in a place where people have ambition to succeed.

Because of this your business might fail.

So these were some of the advantages and disadvantages of virtual office. It is your decision whether you want a virtual office or a real office space.


  1. Nice article. Renting a virtual office space provides your company the convenience, affordability, and reliability of maintaining face-to-face contact with your employees and customers alike, even if you are separated geographically.

  2. Great article content. Virtual offices really are ideal for those businesses abroad who would want to have a physical presence in a particular place or country. Virtual offices are very in demand especially in places like India, Singapore, Hong Kong, London, and in the Philippines. I noticed that most of the companies that offers this kind of business ingenuity thrives in Southeast Asian countries because of cheap labor cost and very strategic places to reach their respective target market and do business in, because of the relentless opportunities for growth. Let’s take for example in the Philippines. Virtual office in Makati, virtual office in Ortigas, and virtual office in Cebu. They are all located in three considered part of the most strategic places for business operations. To sum it all up, virtual office, no matter how many advantages and disadvantages it has, there is no good reason for business not to consider it.


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