Virtual Office Address for Your Business: What You Need to Know

Many entrepreneurs want to present a professional image and keep their personal and business address separate. 

That’s where a virtual office comes in handy. 

But what exactly is a virtual business address, and how to set one? What are the advantages of your business using a virtual office?

If these questions are buzzing in your head, then you’re in the right place.

Read on to learn all you need to know about a virtual business address in the UK to start your business.

Let’s dive in!

What is a virtual business address?

A virtual office address is a service that allows you to have a professional address without needing to rent or own physical office space. 

It’s essentially an online service that provides you with a prestigious business address, often in prime locations like London, Manchester, or Edinburgh.

In addition to enhancing your professional image, it also protects your personal details and your business’s privacy.

If you are a company and not a sole trader, you must have a registered office, according to UK Law.

That’s where a virtual office is handy because it can serve as your registered office address.

This solution is especially popular among startups, freelancers, and remote-first companies seeking to boost their professional image while minimising overhead costs.

So, what are you getting with a virtual office?

Virtual office providers typically offer a range of services to ensure that your business runs smoothly. Some of the most common services include:

Why would you want a virtual office address: Top 9 benefits 

There are lots of good reasons to use a virtual office address. Let’s check the major ones.

1. Professional image & credibility

A prestigious business address in a prime location enhances your brand’s reputation, making your company appear established and trustworthy to clients and partners. 

You might work from a tiny flat in the suburbs, but with a virtual office, your business address can be in the heart of London.

2. Cost savings

Virtual offices eliminate expenses tied to physical office leases, utilities, and maintenance. 

It is much cheaper than actually renting office space in central London (or almost anywhere else that provides physical office space).

3. Privacy protection

If you’re a limited company, your address will be publicly listed and available online through Companies House. 

Many businesses are comfortable with that, as some people may want to keep their business and personal lives separate and don’t want their name and home address to be publicly available. 

Again, this is where a virtual office address comes into play.

4. Bank account opening

Banks require a valid address for account holders, and a virtual address can tick that box perfectly. 

It’s a game-changer for non-UK residents or anyone without a physical address in the country.

5. Getting a Unique Taxpayer Reference

When doing business in the UK, you’ll need a UTR (Unique Taxpayer Reference) from HMRC for filing returns and managing business taxes. 

And the good news? You can set up your UTR with a virtual business address, making it all the more convenient to get your business in order.

6. Flexibility & remote work support

Teams can operate from anywhere while maintaining a professional business presence, making it ideal for digital nomads or businesses expanding into new markets without the need for physical relocation.

For example, over the space of a year, you might live in more than one address, but with a virtual office address, your business always has the same home, giving it a sense of permanence and stability.

7. Mail handling services

Providers manage mail receipt, scanning, and forwarding, ensuring timely access to critical documents and reducing administrative burdens.

8. Access to meeting rooms

Many plans include on-demand access to professional meeting spaces or business lounges, enabling client presentations without long-term leases.

9. Administrative support

Services like call answering, receptionist assistance, and mail management streamline operations, allowing you to focus on core business activities.

Legal requirements and compliance in 2025: what you must know 

Recent regulatory updates have changed the requirements for registered business addresses in the UK.

Failing to comply with these requirements can lead to penalties for both you and the virtual office provider.

How much does a virtual business address cost?

Virtual office services in the UK typically range from £15 to £180 per month, depending on the provider, location, and services included. Here's a breakdown:

6 key factors influencing cost

Several factors can affect the pricing of virtual office services:

1. Location 

The prestige and demand of the address have a significant impact on pricing. 

Prime areas like Mayfair in London range from £50 to £300 per month, while regional cities such as Manchester or Birmingham range from £25 to £150 per month. 

2. Services included 

Additional services, such as mail scanning, call answering, and meeting room access, can add to the costs. 

Some providers offer tiered packages, allowing you to choose services that align with your needs.

3. Contract length 

Short-term agreements may have higher monthly rates, while longer-term commitments can offer cost savings.

Annual contracts often provide discounts. For example, a £50 per month plan might drop to £40 per month with a yearly commitment.

4. Provider reputation 

Established providers like The Hoxton Mix may charge more for reliability and brand recognition, while smaller operators offer lower prices but may lack compliance safeguards.

5. Customisation needs

Additional services like dedicated phone lines, administrative support, or parcel handling incur extra fees. 

For instance, call answering can add £10–£50 per month to base costs.

6. Number of users

Shared plans for teams may reduce per-user costs, while solo packages often offer a lower upfront cost but lack scalability.

6 things to consider when choosing a virtual office provider

While the concept of a virtual office may seem simple, there are several factors to consider before you commit to a provider. 

Below are some key aspects to help guide your decision-making process:

1. Location and reputation of the address

Pick the right postcode since not all virtual addresses are created equal. 

Choosing a provider with an address in a well-known business district can level up your brand’s credibility.

A spot in a premium location, think central London, adds instant polish and trust. 

Just keep in mind that prime locations usually come with a higher price tag, but the boost in professional image can be well worth it.

Otherwise, you might choose a less central, yet still respected, location to keep costs down.

2. Range of services offered

Virtual office providers typically offer more than just an address. 

Evaluate the range of services that come with your chosen package, as these can make a significant difference in your business operations.

Ensure the provider offers:

The most important thing is that the services match your current and future needs.

3. Compliance and legal requirements

Make sure the provider is legit. Before signing up, double-check that your virtual office provider plays by the rules. 

In the UK, that means offering a physical registered office address to comply with the 2023 Economic Crime Act. 

Also, look for proof-of-delivery systems for legal correspondence, since missing important documents is the last thing your business needs. 

And since handling sensitive customer info is part of the game, your provider should be fully up to speed on data privacy laws like GDPR, which applies to all businesses operating in the UK and EU.

4. Pricing and hidden fees

Cost is always a key factor when selecting a virtual office provider, but you must dive deeper than just the listed price. 

5. Customer support

Test their responsiveness before you commit.

Take a moment to see how quickly they reply, how professional they are, and if their responses actually solve your problems. 

A solid provider should quickly address your concerns and offer helpful, clear solutions.

1. Look for 24/7 support or fast response times  —Your business can’t afford unnecessary downtime, so make sure your provider is ready to resolve issues quickly, no matter when they arise.

2. Multiple ways to reach them are a must — Check that they offer several contact options, like:

Having these options means you can pick the most convenient way to get in touch based on your needs.

6. Reviews and testimonials

Before making a decision, check out reviews and testimonials from other businesses. This will give you an idea of the provider’s reliability, customer service, and overall satisfaction.

Prioritise providers with a proven track record and industry longevity.

How to set up a virtual office address in 4 steps

Setting up a virtual office address is easier than you might think. Just follow these 4 simple steps to get started.

How can you easily set up a virtual office address with ANNA?

As part of our company registration services, we offer a serviced virtual office address through our partner, Hoxton Mix.

Our solution enables you to:

Once you have your virtual or physical address settled, you can register your company in just three quick steps.

What else is in store for you?

Here at ANNA, we will:

Ready to see ANNA in action?

Sign up today and set your business up for long-term success in the competitive UK market.

Keep learning:

How to Start a Business in the UK

A Guide To The Company Registration Number (CRN) In The UK