Virtual office - why is it worth it?

You have already heard many times about a virtual office, but you do not know what it really is? Do you want to set up a business, but you do not have a permanent address or for some reason you can't provide the company with yours? Are you a foreigner and looking for a seat for your company? We are here to help you!

What is a virtual office?

A virtual office (hereafter referred to as “VO”) is an office service for businesses that consists in sharing the service provider's address as a registration and/or mailing address for other companies. VO services also include handling incoming correspondence, scanning and sending content to the recipient, and in higher-quality companies, even a printer-copier at your disposal or the possibility of renting a conference room for meetings with your clients. This is especially helpful if, as a company, we don't have the ability to register it at our permanent address or if we change it frequently. It's also a great solution for freelancers or small businesses that are just starting out and don't have their own premises yet.

What are the long-term benefits of this solution? Huge. First and foremost - savings - the cost of a virtual office is much lower than the cost of renting a physical premises or hiring additional staff to manage it. What's more, as tenants we can use a prestigious address that will surely attract clients, without incurring the actual cost of renting an office in a reputable area. It's also a convenience - you can change your working location to anywhere in the world even every month without having to update your business address. What is more, many companies offering VO also provide additional services, such as accounting, company registration or renting conference rooms for business meetings - so you have a whole package of services in one place.

Sounds great, doesn't it? And what does it look like from the legal point of view?

The rental of virtual offices is consistent with current regulations in Poland. There is no law in Polish legislation prohibiting the registration of a company at a virtual office's address. In addition, on May 8th, 2014 Voivodeship Administrative Court in Bydgoszcz ruled that it sees no contraindications to such a solution in today's age of technology that allows you to exercise an economic activity from anywhere in the world.

As for tax offices, they are sometimes skeptical of companies with a virtual office address and are more likely to conduct inspections there. So how should you prepare for them? All you need is to show the VO lease agreement and your accounting documents. For this reason, it is good if the company providing virtual office services also handles your accounting - in the event of an inspection, they will have all the documentation prepared straight away, moreover, they will know your situation and will be able to talk to the officials about it.

Attention! If you indicate premises as a place of business to which you do not have a legal title, or you are in a situation where the owner of the premises has not agreed you exercised an activity there, those can be grounds for both the deletion of your entry from the Central Register and Information on Economic Activity (in Polish CEIDG for short), as well as problems with registration as an active entity for VAT. Tax offices carry out inspections in this regard, and it may happen that the Tax Office will question all expenses incurred in connection with the unlawful use of the premises for business purposes.

What is the address of the place of business in the case of companies registered in the National Court Register (in Polish KRS for short)?

Share-holding companies registered in the National Court Register must indicate the address of their place of business. If it is different from the address of the company's seat, places such as a wholesaler's or warehouse must also be indicated.

Change of address for a trade law company - what does it mean and what does it affect?

A change of address is not synonymous with a change of the seat. The law allows the company to change its seat's address within the same city. However, it is important to remember that when changing the company's or the seat's address, the company's data in the National Court Register must be updated, and this entails additional costs.

Company registration address and mailing address - are they the same thing?

As we mentioned earlier, providing a company registration address and a mailing address are two different things. The registration address is only used to establish a company and register it with the relevant authorities. It is also our business card – it gives our company its prestigious character, hence the decision of which virtual office to choose is crucial. As for the mailing address - it can be different from the one indicated during registration. This is an additional advantage, for example, if we want to reduce even more costs and not to use the virtual office's incoming correspondence service.

To conclude, a virtual office is a service ideally suited for sole proprietors, share-holding companies, start-ups or freelancers working remotely. Contact our specialist now to select the best offer for you and your business.

The article was written thanks to cooperation with accounting specialists from magfin.pl, a consulting and service company dealing with company registration, accounting, real estate and credit intermediation and legalization of residence and work for foreigners in Poland. Contact us at +48 531 510 005 to know more details.