Everything About Virtual Offices, From Someone Who Works in the Field

Editor's Note

I first learned the term "virtual office" when I joined CoworkCity. Honestly, even after hearing I'd passed the interview, I remember hesitating quite a bit. (CEO, please look the other way…!) So even before starting, I spent a long time researching and looking into it myself before my first day. I wanted to know exactly what a virtual office is, whether it's legal, and whether lots of people really use it. Do you have the same questions? Let me walk you through everything about virtual offices, based on what I've experienced and pieced together firsthand on the job.

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So what exactly is a virtual office? A virtual office is, quite literally, an office where you don't physically reside. It isn't a physical space you actually commute to and work in, but it's a space you can use as your address for business registration and where you can receive mail. Think of it simply as a "business address rental service." At first I thought, "How is that even an office?" But for people who don't need an actual workspace, it turns out to be a genuinely useful service. That's especially true these days, when working from home, working from cafés, and remote work have all become routine.

How is it different from a regular office? A regular office provides actual workspace—desks, chairs, meeting rooms, and so on. You can commute there and work every day. A virtual office, on the other hand, doesn't provide workspace, but it gives you the "address" you need to run a business. It's also different from a shared office. A shared office is a workspace several people use together, whereas with a virtual office you don't use the space itself—you're only borrowing that space's "address."

Who uses it? Looking at the customers I've actually met since joining, they're really diverse. Solo entrepreneurs and freelancers are the most common. People who work from home use a virtual office address instead of their home address when registering a business—after all, putting your home address on a business card is a bit much. Online shopping mall operators also use it a lot. They run an online business that doesn't need a physical store, but they still have to register a business. Early-stage startup founders are regulars too. They can't yet afford an office but need a prestigious address like Gangnam or Yeouido. The credibility an address conveys during investment pitches or meetings matters more than you'd think. There are also companies considering branch expansion. When headquarters is in a regional area but they need a branch address in Seoul, they make use of a virtual office.

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Is a virtual office a legal service? This was the very thing I was most curious about before joining. "Is this actually okay?" To be honest, I was a bit skeptical.

Is it legally fine? To get straight to the point, it's completely legal. When I looked into the relevant laws, neither the Commercial Act nor the Value-Added Tax Act contains any provision requiring that a place of business be an actual workspace. To register a business, you need a "place of business location," and a virtual office serves exactly that role. In fact, the National Tax Service also recognizes that you can register a business using a virtual office address. There are a few conditions, though.

Can it be used as the address for business registration? Yes, it can. Sole proprietors and corporations alike can register. After joining, I became convinced of this while looking at countless business registration certificates. That said, not every business type is eligible. Industries that absolutely require actual operating space—like food manufacturing or restaurants—naturally aren't allowed. But most service industries and online businesses, such as IT, consulting, design, and trade, can be registered without any problem.

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Is receiving mail legal too? Many people worry about this as well, but there's absolutely no problem. Mail receipt and forwarding services are essentially the same concept as the parcel-locker services offered by the postal service or courier companies—just a more systematized version designed for businesses. At CoworkCity alone, hundreds of pieces of mail come in every day, and they're all delivered to each customer on mobile through proper procedures.

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Do a lot of people really use it? Contrary to my worries before joining, a great many people do use it. I can't cite exact statistics, but across the industry as a whole, tens of thousands of businesses are said to be using virtual offices. Demand has surged especially over the past few years as solo enterprises and small-scale startups have increased. The shift in mindset after COVID-19—when remote work became widespread and people started asking, "Do I really need an office?"—has had a big impact too. In fact, among the customers I've met since joining, many have been using a virtual office for several years already. I often hear things like "the value for the cost is just too good" and "I was skeptical at first, but now I'm really satisfied."

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Wrapping up Have your questions from when you first heard the term "virtual office" been answered? It's something I came to understand by working here myself—it's a far more systematic and legal service than I'd expected. Of course, it isn't a service everyone needs. If you need actual workspace or have to work alongside employees, a regular office or shared office would be a better fit. But for solo entrepreneurs, online sellers, and early-stage founders, a virtual office can be a truly smart choice. If, like me, you're hearing about it for the first time, it might be worth looking into. More people than you'd think are already using it cleverly!

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