How to Use a Virtual Office for Business Registration in HK?

Are you looking for an office in Central, but worried about the high rent? Don't worry, a virtual office provides a perfect solution! In Hong Kong, what are the monthly costs of a virtual office? How to use a virtual office for business registration? LetsGetHome offers a detailed guide for budding entrepreneurs.

What is a Virtual Office?

A virtual office is an ideal solution for small and medium-sized enterprises (SMEs) and startups to save on the costs associated with a physical office. Its main features include business address registration, mail and package handling, professional secretary services, call answering, and meeting room rentals.

Prices and Services of Virtual Offices

Virtual office services in Hong Kong usually come in three main packages, providing corresponding services based on different needs.

1. Address Package
   • Services: Business address registration, mail and package handling.
   • Price Range: HKD 45 to HKD 150 per month.
   • Target Audience: Businesses that only need address registration and basic mail handling services.
2. Basic Business Package
   • Services: Includes address package services, dedicated phone number, and secretary call answering service.
   • Price Range: HKD 220 to HKD 350 per month.
   • Target Audience: Businesses needing professional phone services and aiming to enhance their corporate image.
3. Professional Business Package
   • Services: Includes basic business package services, dedicated fax number, and fax services.
   • Price Range: HKD 300 to HKD 450 per month.
   • Target Audience: Businesses requiring comprehensive office services and pursuing a high-end image.

Is it Legal to Use a Virtual Office as a Business Registration Address?

In Hong Kong, using a virtual office for business registration is legal. The law permits businesses to use leased virtual addresses as their registered business addresses, provided the address can legally receive mail.

Government Requirements for Virtual Offices in Hong Kong

• Valid Address: The virtual office address must be real and valid, capable of receiving correspondence from government departments and other legal documents.
• Business Registration: The company must register with the Hong Kong Inland Revenue Department and ensure that the virtual office address is consistent with the registered address.

How to Use a Virtual Office for Business Registration?

New companies must pay the business registration fee and apply for a business registration certificate within one month of establishment. Before applying for the certificate, you should choose a virtual office, sign a lease agreement, and prepare the company information to apply for the business registration certificate with the Hong Kong Companies Registry.

Considerations for Choosing a Virtual Office

• Geographical Location: Choose a suitable area for your company. For example, offices in Central or Tsim Sha Tsui are ideal for building an international image, while Kwun Tong or Tsuen Wan are more suitable for trade or startup companies.
• Service Scope: Evaluate the services offered by the virtual office, such as mail handling, call answering, and meeting room usage.
• Transparent Pricing: Choose a virtual office with transparent fees to avoid hidden charges.

Be Aware of Hidden Fees When Signing a Lease

When signing a contract, clearly understand the service scope and contract terms. Pay particular attention to the following hidden fees when renting a virtual office:

• Not Truly Monthly Rent: While advertised as monthly fees, many virtual offices require a six-month or one-year contract with pre-paid fees for multiple months.
• Only Includes Business Address: Basic packages usually only include a business address for company registration, with additional charges for call answering and mail handling services.
• Mail and Package Forwarding Fees: Basic services usually only notify users to collect mail, with extra charges for scanning or forwarding mail. Package handling may also incur additional fees and size restrictions.
• Additional Fees for Telephone Secretary Services: Phone services come with various charge options, such as answering, voicemail, and call forwarding, which should be chosen based on actual needs.
• Refund Guarantee Terms: Some virtual offices offer a refund guarantee, but the terms must be read carefully to understand the conditions and restrictions for applying for a refund.

Documents Required for Business Registration

• Company Name: Provide a name that has been checked for availability.
• Company Address: The business address provided by the virtual office and the lease contract.
• Company Member Information: Includes identification and address proof of directors and shareholders.
• Business Registration Application Form: Obtain the form online. The business registration application form will be mailed to the provided address.
• Other Documents: Necessary business licenses, if applicable.

Apply for Business Registration with the Companies Registry

• Submit the Application: Submit the business registration application form and the required documents to the Hong Kong Companies Registry.
• Pay Registration Fees: One-year business registration certificate: HKD 2,150 (including a HKD 150 levy); Three-year business registration certificate: HKD 5,650 (including a HKD 450 levy).
• Review and Approval: The application process takes 1-2 weeks for registration to be completed.

Which is the Best Virtual Office in Hong Kong?

FAQs About Virtual Offices in Hong Kong