What is a Virtual Office? Is it Legal in Vietnam?

1. What is a Virtual Office? 

A virtual office refers to a location rented by companies to use as their official business address for registration purposes, where they display the company's signage and logo to satisfy regulatory requirements. In reality, the company’s business operations may take place at another location, such as an apartment or residential property, that does not meet the criteria for business registration.

2. Advantages and Disadvantages of a Virtual Office

Advantages

• Most companies that rent virtual offices are small businesses or startups with limited budgets. Instead of purchasing property, building infrastructure, or renting a standard office space for business registration, renting a virtual office (where many other companies also register their business address) is much more cost-effective.
• Most virtual offices are located in large buildings in central city areas, which can enhance the company's image. This gives customers and partners more confidence in the company’s credibility due to its prestigious address.

Disadvantages

• A single virtual office can serve as the registered business address for multiple companies. Therefore, using a virtual office can be inconvenient to some extend.
• Some customers or partners may insist on visiting the company's registered office for negotiations or signing contracts. Since the virtual office is only used for signage and meeting regulatory requirements, it can be challenging to use it for hosting clients or partners.
• There is a potential for disputes with the virtual office provider, as the relationship is essentially a rental agreement. Disputes could arise over issues like payment, rental duration, rental costs, and service usage.

3. Is Using a Virtual Office Legal in Vietnam? 

Article 42 of the Law on Enterprises 2020 stipulates: “The head office of an enterprise must be located within the territory of Vietnam, and is the contact address of the enterprise, determined according to the administrative boundaries; it must have a phone number, fax number, and email address.”
According to this regulation, the head office of an enterprise must be located in Vietnam and serve as the contact address of the business, determined by the administrative boundaries.
Therefore, the law does not prohibit the use of a single address as the head office for multiple businesses. Consequently, using a virtual office as the registered address for establishing a company (as its head office) does not violate Vietnamese law.
However, if a company uses a virtual office as its registered address, properly displays the company’s signage in accordance with legal requirements, but conducts its business operations at another location without notifying the authorities, it would be violating the law.

4. Virtual Office – A Smart Solution for Small and Medium Enterprises 

During economic crises, when the cost of office space becomes a burden for businesses, virtual offices have started to gain traction. In line with the trend of developing a dynamic economy, today, young professionals, freelancers, and remote workers who need a registered business address and occasionally a place to meet clients or hold meetings with partners, both domestic and international, find that a virtual office is a smart solution for achieving the best business outcomes.

Virtual offices are currently a lifesaver for small and medium enterprises. Business owners, aiming to balance finances reasonably to sustain operations while waiting for recovery and growth opportunities, have chosen virtual office services to save on company expenses.

Virtual office services help businesses save on the still-high cost of office rentals. For just around 1 million VND per month, companies can secure an office in the city center to register their business address, handle transactions, meet clients, and hold meetings. For any inquiries about virtual offices, please contact Zora for the most comprehensive and prompt assistance.
Zora Consulting offers flexible and affordable virtual office rental services in Phu My Hung, District 7, a highly desirable business area in Ho Chi Minh City. This strategic location allows businesses to establish a prestigious presence without the overhead of a physical office, making it especially ideal for small and medium enterprises (SMEs). For any inquiries about our virtual office solutions, or to explore how we can tailor our services to meet your specific needs, please contact Zora Consulting’s dedicated team for the most comprehensive and prompt assistance.