A virtual office address is an address that belongs to a company who have in place the appropriate processes and compliance measures that allow other companies to use it as though it were their own.
Providing businesses with a physical location to have their mail sent to (and processed) which helps you separate business and personal life, a virtual office address is a real street address used by businesses as either their official office address and/or for their general day-to-day business correspondence.
Is there more than one type of Virtual Office Address?
Broadly speaking there are 4 types of addresses a business and its owner(s) might need:
Correspondence Address – this is usually the address given to suppliers and customers to send mail to. A company might have multiple correspondence addresses for separate departments such as Accounts, or Marketing.
Business Trading Address – typically the address which a company operates from (though this will not be the case when opting to use a virtual trading address). This is the address which is used on marketing materials, company stationery and online (on your website, social media channels and Google Business Profile).
Registered Office Address – the address an incorporated business uses to register with HMRC and Companies House as the ‘official’ address of your company, this is where all important company paperwork will be sent. Legally this cannot be a PO box number alone (there must be a physical PO box service provider at that address that can accept mail on behalf of the company, you must supply Companies House with the full postal address, including the postcode.) Authorities would expect to be able to talk to someone that can give them absolute clarity on all the other addresses and contact details a company has and, crucially, the residential address(es) of the company’s director(s) if they visited this address.
Directors’ Correspondence Address – the official correspondence address of the director(s) of a company, specifically used for mail addressed to the director(s) rather than the limited company or LLP. All company directors are legally obligated to provide a service address, which will be of public record. It legally must not be a PO box but does not have to be the director’s residence. So, should a director wish to protect the privacy, identity, and location of their family, they can use another. However, there is an expectation from the authorities that should this address be visited, locating the true location of a director would be immediately possible.
The simplest solution would be to use the same address to meet all your address needs, though there are several reasons why you may not do this, such as wishing to appear in multiple locations.
Who might consider using a Virtual Address?
Whilst virtual addresses are especially popular amongst home-based businesses, there are suitable for use by all types of company structure – from sole traders and partnerships; to limited companies and LLPs or even PLCs often use virtual office addresses.
For those starting a business from home, a virtual office address is often the first step to getting established in a physical space. It allows them to reassure prospective clients that they are a serious, professional, operation and often gives them access to meeting rooms and other business services.
A larger company may choose to use a virtual address in a city other than where their head office is located, in order to have a presence in that city.
What does a Virtual Address service include?
At the most basic level, a virtual address service includes:
- An address in your desired location
It can also include:
- Physical mail forwarding,
- Mail scanning and digital forwarding,
- Mail filing (in requested storage solution, forwarding to accountancy software and much more.)
Many virtual address providers also provide administrative and officing solutions, from telephone answering and diary management to coworking space and meeting room rental. The exact services will vary from location to location (and provider to provider) but it is always worth asking what other support they can offer you and your business.
Should I be using a Virtual Office Address?
If after reading this article, you’re wondering whether you should be using a virtual address, ask yourself the following questions:
- Does my business require a ‘presence’ in a particular location (or locations)?
- Do I mind my home address being on public record?
- Would a virtual address provide my business with a more professional ‘front’?
- Does my business need the flexibility of not being fixed to one address?
- Would my business benefit from having a virtual address?
Utilising a Virtual Office Address can have many benefits for both you and your business. If you’d like to find out more, please give Delocate a call on: 01603-555-208
