Setting Up a Virtual Office in the City Of London

If the last five years have taught us anything, it’s that most professional businesses are no longer limited to the confines of traditional office spaces.

Virtual office services have revolutionised the way tens of thousands of companies operate, meeting both the UK’s legal business requirements while facilitating hybrid and remote working.

With roughly 28% of British workers now operating on hybrid schedules and an additional 13% solely working from home,virtual offices fits how people actually want to work rather than how they did pre-2020.

This guide will explain how to set up a virtual business address, outlining the key steps to get your virtual office ready to go. We'll also look at how a virtual law office might function in practice, since legal services show how an address-dependent profession can adapt without losing credibility.

Why choose a virtual office?

The shift to remote/hybrid working

British working patterns shifted permanently after the pandemic, with 41% of the workforce enjoying remote working for at least some of the work week. These figures have held steady since 2022, which suggests this isn't a temporary accommodation but a structural change in how work gets done.

This creates an obvious mismatch as, legally, businesses in the UK need to have a registered office address that is a legitimate mailing address which can be listed on Companies House.

Virtual offices bridge that gap by providing the necessary infrastructure, such as a registered business address, without requiring everyone to show up at the same building five days a week.

Benefits of using a virtual business address

Virtual office solutions offer plenty of advantages to businesses of all shapes and sizes. These can include:

• A prestigious business address that is connected to physical office space that your business can use for occasional coworking days
• Mail handling and telephone answering services so you never miss any new enquiries or important mail
• Significant cost savings on office space rent, equipment and facilities, making it a cost effective solution for start ups and small enterprises
• The flexibility to operate from anywhere while maintaining a fixed point of contact.

The benefits of setting up a virtual business address compound when you consider that many businesses simply don't need physical desks but do need legitimacy.

Key Steps to Setting Up a Virtual Office

Step 1: Define your needs

Start by figuring out what you actually require. Mail handling is standard, but some inclusions suych as meeting room access and reception services can cost extra.

Location matters too. A London address carries weight, but it costs more than one in Birmingham or Manchester.

Decide whether you're using this for your registered address, your trading address, or both, since that affects compliance requirements.

Step 2: Choose a provider & location

Pick a regulated virtual office provider with solid reviews and a credible address.

If you're registering a UK company, Companies House requires a physical address where official documents can be served, and virtual office addresses are acceptable for this purpose.

Check that your provider explicitly allows the use you have in mind, as some restrict certain business types or prohibit using their address for company registration.

Step 3: Set up your address & services

Sign up and you'll receive access to your virtual business address, mail forwarding, and any extras like call answering or meeting rooms.

Update your website, marketing materials and company registration accordingly.

If you're setting up a virtual office business yourself rather than using one, the process inverts: you'd select sites, define service tiers, and build the operational structure.

Step 4: Maintain & scale

Once operational, make sure mail gets processed quickly and calls are answered professionally. Review your setup periodically.

As you grow, you might add services like dedicated reception or virtual assistant support.

With hybrid working patterns continuing across the UK, a virtual office becomes an ongoing strategic asset rather than a temporary fix.

Case example — a virtual law firm

Imagine setting up a virtual law firm in the UK.

The solicitors work remotely across different regions, but clients expect a professional London address and occasional face-to-face consultations.

A virtual office provides the prestigious location, mail handling, and meeting rooms without the overhead of permanent premises.

 Regulated industries like law have stricter requirements around address use and client confidentiality, so compliance checks matter more here than for a standard consultancy.

Legal, Practical & Compliance Considerations

You can use a virtual office for company registration with Companies House as long as it's a real physical location staffed during business hours, not just a mail forwarding service.

The address must be in the same jurisdiction where your company is registered. Many directors prefer virtual offices over home addresses since registered addresses appear on public records.

Some regulated sectors face restrictions, including financial services and solicitors. The Solicitors Regulation Authority requires firms to maintain at least one practicing address in the UK, so if you're setting up a virtual law office, you'll likely need physical meeting space for client consultations and secure file storage.

Choose a provider offering proper HMRC and Companies House compliant mail handling. Since March 2024, UK company law requires a designated person at your registered address to accept correspondence promptly.

Nearly half of remote workers admitted to knowingly compromising data security making encrypted devices and VPN access essential when teams operate remotely.

Tips for Success & Common Pitfalls

Tip 1: Choose an address that aligns with your client base

Strategically selecting a location that suits your client base is just as important as an address to impress. A London postcode carries weight in certain industries, while a regional city gives you a local presence. Credibility often hinges on location, so pick somewhere that makes sense for your market rather than defaulting to the cheapest option.

Tip 2: Ensure your virtual office service includes the core features you need

While it’s easy for budget-conscious businesses to go for the most affordable virtual office packages, this can sometimes mean paying more in the long run. In contrast, there may be some services that you don’t need that end up costing much more.

Tip 3: Keep your digital presence consistent

Your virtual office address is an asset that helps build your professional business image, especially if your . Keep your digital presence consistent across your website, email signatures, and business cards so the address doesn't feel bolted on as an afterthought.

Pitfall: Don’t treat the virtual office address simply as a mailbox

Virtual offices offer more than just mail handling services. With some providers like Servcorp offering professional receptionists ready to assist you with any task, virtual offices are incredible resources beyond mail scanning and answering calls.

Pitfall: For regulated industries (e.g., law firms) check regulatory guidelines.

For regulated industries like law, verify that your chosen address meets regulatory guidelines and legal requirements before committing. Not every virtual office provider satisfies the standards required by professional bodies or financial regulators.

Conclusion

Setting up a virtual office gives UK businesses a practical way to maintain a professional image while keeping overheads low. It supports remote and hybrid working without sacrificing credibility. The steps outlined here apply whether you're launching a startup or running an established firm considering a virtual law office.

Evaluate providers based on what you actually need. Check compliance requirements for your industry, confirm mail handling meets legal standards, and make sure the address aligns with how clients perceive your business. The infrastructure exists; it's just a matter of choosing the right fit for your operations.