How to get a virtual business address

If you’re a small business owner who doesn’t need (or can’t afford) a physical office, a virtual business address could work wonders for your business.

In this guide, we’ve put together everything you need to know about virtual business addresses: how they work, why you’d need one, and how to set one up.

What is a virtual business address?

A virtual business address is a great way to separate your business from your home address, and they’re easy to set up.

It’s especially useful if you’re a tradesperson who works out of your van most of the time, without needing an office or workshop.

You won’t be able to physically visit or work from your virtual business address. However, it is a legal address with a verified location and is listed as part of a real building.

How can I use my virtual business address?

A virtual address for business offers flexibility and the ability to establish a corporate image without the constraints or costs of a physical location.

Many small businesses find that having a virtual business address adds credibility to their business for customers to see.

With a virtual business address you can:

• Use it for registering your company
• Display the address on your website
• Use it to receive post

Other virtual business services

As well as having an address you can refer to and receive mail to, you may find it useful to set up reception and telephone answering services. These include:

• Telephone answering
• Call forwarding to your personal mobile
• Text and email notifications
• Receptionist service

You’ll find that many virtual office suppliers will offer two payment options for telephone services: pay-as-you-go or a monthly subscription fee.

Benefits of having a virtual business address

There are numerous reasons why setting up a virtual business address can be a good idea, including:

• Maintain your privacy – You don’t need to use your home address or make it public
• Build a professional image – A virtual address looks good for your brand and adds credibility
• Received posted mail – You can receive post, which is either forwarded on to your home address or scanned and sent to you digitally
• Save money – Virtual address is much cheaper than a physical office and can expense the fees when submitting your tax return
• Create ‘local’ offices – If you want to appeal to local audiences you can set up multiple virtual addresses in different locations
• Keep the same address – Your virtual address stays the same, even if you move

Need help growing your trade business? Joining Checkatrade could be the solution you’re looking for. Learn more about Checkatrade memberships in the guide below:

Which type of virtual address do I need?

When setting up a virtual business address, the type you choose will depend on how you plan to use it:

• PO Box – This option is usually the cheapest and allows you to receive letters, but is quite restrictive compared to other options
• Street address – This allows you to create a professional image and is a good option if you have personal customers who will be reassured seeing a real street address
• Business address –  Typically more expensive but offers a comprehensive ‘virtual office’ experience with mail handling, call forwarding, and often meeting space access
• Redirection address – If your business regularly changes location, you may want a redirection address to avoid interruption in receiving mail
• Returns address – For businesses that sell physical products, this option allows you to receive returns away from your home address
• Parcel address – If you operate an international business and need a UK-based address to streamline logistics for parcel deliveries, and offers a local presence without a physical office.

Set up a virtual business address in 5 steps

If you think a virtual business address is something that would work well for your business, here’s how to get started…

1.    Decide what you need

It’s important to choose the right set-up for your business.  What’s right for you and your business will depend on the size of the company, your staff, and funding.

If you’re starting from scratch, you’ll likely want to opt for a 100% virtual office. This way, you’ll be able to focus on your business goals without compromising too much budget.

Alternatively, if you don’t think a virtual address is right for your business, read our other guides about:

• How to set up your business premises
• How to choose your working area

2. Find a virtual address company

Next, you’ll need to find a company that can help you set up a virtual business address.

Numerous companies offer virtual office services. In the UK, there are various sites that offer these services, including mail management. For example, UK Postbox, Icon Offices, Virtually There, and Company Address.

All you need to do to get a virtual business address is choose a package to suit your needs. Then simply sign up and register with the appropriate documents (identity and business etc.). Finally, wait until you’re given the go-ahead to use your new virtual address.

3. Register your company

Once your documents are verified, you can use your virtual address to set up your business and register your company. This address can then be used on your website, emails, documentation, stationery, and forwarded to all your business contacts.

Now you’ve set up a virtual business address and registered your company, all your post will go to your virtual office. This means you can keep your home address protected and maintain your personal privacy.

4. Set up a mail management service

Most virtual business spaces offer mail management services, which will notify you when you have post to collect.

Alternatively, for an extra fee, you can get your post forwarded to your home address to save you precious business-building time.

5. Prepare for growth

If you want your business to grow nationally, take advantage of multiple virtual business addresses to keep things running smoothly.

For example, if you offer services in three distinct locations with teams operating in each area, having three separate and local addresses has its benefits. Not only does it help with marketing (incl. SEO), it lets you manage each area and customer base separately.

Having a registered address in the area of your customers gives them confidence that you’re local. It’s also a nice way to improve your online presence in that specific area.

How much does a virtual business address cost?

The cost of virtual business address will depend on various factors, such as location and any additional services that you want included.

On average, a standard business service package (such as mail management) will cost somewhere in the region of £20 - £75 per month (+VAT).

At that price, having a virtual office is a cost-effective way to give your start-up or trade business a professional address. Much cheaper than renting a physical space that you may not need.

FAQs

Can I use a virtual address for HMRC?

Yes you can. It’s legal to register a non-VAT-registered small business with Companies House using a virtual business address.

However, HMRC doesn’t accept virtual addresses if you’re hoping to register for VAT (if your business has a turnover of £85k + per year).

For VAT registration, you’ll need use a physical business address. In most cases, this would be your home address.

What is the point of a virtual address?

Most people prefer a virtual address to their home address for privacy, to create a professional image, and localisation purposes.

It offers you the credibility of having a business address without the cost of renting a physical office.

Is a virtual business address worth it?

People like to see where businesses are based and whether it’s near them or in a prestigious area. So, for marketing and privacy purposes, it’s worth it.

And if you compare the cost of a virtual business address with renting an office space, it’s a much more cost-effective solution.

A virtual office is also particularly useful if you live abroad and need a UK address to trade internationally.

Is a virtual office address legal?

Yes, they’re 100% above board. They’re legally verified locations listed within buildings.

The only thing you need to know is they don’t qualify for VAT registrations. You can still have a virtual address if you earn over £85k a year. However, you legally need to register your VAT address with your actual place of work (e.g. your home).