What is a virtual office? Virtual office service in Vietnam

With the current economic integration context, the virtual office model for FDI companies is increasingly developing and popular in the Vietnamese market. Due to the need to reduce costs to focus on resources for businesses, the virtual office for rent model is designed to help enterprises expand markets and develop potential clients. This form of office leasing brings many benefits and is deemed the most optimal solution for foreign investors in Vietnam if they are not ready to hire a physical office.

What is a virtual office?

The term “virtual office” is not specified in any legal documents but is named and called by the providers and users of this service. It can be understood that a virtual office is an office address that investors can rent to use as the head office address for their businesses or rent an address to open a branch or representative office. This form of office leasing allows users to use the utilities as a real office, such as business registration address, phone number, fax number, reception department, reception room, etc.

For companies or private enterprises initially approaching the Vietnam market, a competitive and harsh environment, it is imperative that they cut down many costs to generate profits and continue to run the company’s operation. At that time, these companies or individuals may not have enough capital to afford to rent a physical office for the long term. Thus, the option of using virtual office services is the first choice. This is considered the optimal solution to help investors save maximum costs.

Who is the virtual office model suitable for?

The virtual office model is suitable for many different business objects, popular such as:

• Small and medium-sized companies or enterprises want to save operating costs.
• Individuals are preparing to or have just set up their business.
• Large-scale companies can rent offices to use as registered addresses of branches or representative offices.
• Foreign investors have a need to rent a VO to act as a representative office.
• Foreign companies are operating and are in the process of exploring the Vietnamese market.

• The operating enterprises need to expand branches and representative offices or establish new companies and subsidiaries,…
• Consultants or project groups need to use the guest room and meeting room.
• Startups need to establish a legally operating company.
• …

Why should FDI companies rent a virtual office?

Addressing urgent transaction address needs

Foreign investors want to set up a business in Vietnam to generate profits and transfer profits to their home country. In many cases, they do not need to sit or do not regularly sit at a fixed location. However, they still need a prime location to register their companies and receive correspondence from customers, state agencies, and business partners.

When using a virtual office for rent, FDI companies can be assured of the legality of their companies’ head office addresses. Also, the service and communication system of the virtual office is always fast and modern. This helps FDI companies initially create sympathy with target clients in Vietnam.

Saving time and costs

At the initial step of approaching and exploring the market, foreign investors will undoubtedly face many obstacles and difficulties in planning financial management optimally. Because expanding business activities to new markets is always highly risky. If the business in the target market is not positive, the company must withdraw to limit costs as well as time-consuming.

These obstacles will be solved quickly when businesses use virtual office services. With these offices, FDI companies will not need to spend money to invest in office equipment and facilities or pay salaries for receptionists, … Instead, they only need to pay a small fee to rent an office address. Everything else has been arranged and resolved by the service provider.

Creating a sense of security and professionalism

Foreign investors approaching the Vietnamese market shall certainly face many barriers in terms of language, culture, lifestyle, etc. Also, being in a completely unfamiliar country also makes the foreign staff’s psychology not open, and they always have a feeling of insecurity.

At that time, the virtual office model for FDI companies was the best companion. Foreign investors will feel more secure and professional in the way of surveying, investing, and developing their business in the Vietnamese market.

The legality of virtual office for foreign companies

Under the 2020 Law on Enterprise, “Enterprise means an economic organization having its own name and transaction office established or registered for establishment in accordance with the law to do business.”

Under Article 42 of the 2020 Law on Enterprise, “The head office of an enterprise is located in the territory of Vietnam, is the contact address of the enterprise and is determined based on administrative boundaries and units and has telephone and facsimile numbers and an email address (if any).”

Based on the above definitions, it can be seen that virtual office is a term that is not specified in legal documents but arises based on the actual situation. Currently, no legal document mandates that a place be located only for one business. The law also does not prohibit renting these offices to register companies’ head offices.

The location used as a virtual office is also the registered location of the office-for-lease service provider. Therefore, using virtual office services by FDI companies has become an inevitable trend in today’s modern society. 

Consulting service for virtual office rental at LTS LAW

With legal support and professional legal advice from LTS LAW’s team of experienced lawyers, you will have access to quality, reputable and legal virtual office services. When using our services, you will be guaranteed all aspects of the following benefits:

• Professional legal support from experts and lawyers, ensuring the highest responsibility and satisfaction for clients using the service.
• Supporting to complete documents and procedures based on information provided by clients under the law, helping individuals or enterprises save the maximum time, costs, and effort.

• Ensuring absolute confidentiality of information and records of individuals and enterprises.
• Legal support in any cases of the enterprise establishment process and related procedures, helping enterprises minimize risks.

In conclusion, the virtual office for FDI companies is an indispensable service model in the current situation of economic integration and globalization. This is also an excellent solution for enterprises initially “entering” the Vietnamese market to start a business. Please get in touch with LTS LAW immediately if you need our advice on virtual office services.

LTS LAW FIRM

Address: Room 602, 6^th Floor, 520 Cach Mang Thang 8, Ward 11, District 3, Ho Chi Minh City, Vietnam.

Email: contact@lts.com.vn

Hotline: (+84) 902 798 066