Virtual Offices in Singapore: Pros & Cons

4 min read|Last Updated: May 22, 2023|

What’s in this article

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Who knew that Covid-19 would have been a key driver for many digitalisation initiatives by companies, even to a point where it was hailed as ever company’s Chief Technology Officer? Well, the pandemic has brought light to the need for a physical office, with lockdowns restricting movement to and from the offices.

With remote and hybrid working a popular trend among businesses, companies are relooking at their workplace strategy when it comes to having a physical office. The idea of having a virtual office is now the talk of the town, and rightly so, as hybrid working model is here to stay, especially for newly incorporated companies in Singapore and even globally.

What Is a Virtual Office?

A virtual office is a service that empowers businesses and employees to work remotely without the need for a physical space while utilising the infrastructure of a corporate organisation such as telephone and messaging services, meeting rooms, mailing address, and more.

Here’s the full breakdown of the most common virtual office characteristics:

Pros & Cons of Virtual Offices in Singapore

The popularity of virtual offices in recent times is because of its list of advantages, which includes the following.

Advantages of Virtual Offices in Singapore

  • Cost-efficient operating model

    One of the main benefits of having a virtual office is that the business saves costs for rental and utility bills – especially in Singapore where rental and utilities are expensive. These cost savings can be put to better use such as business expansion or research and development.

  • Employee empowerment

    Attracting top talents can be difficult. By empowering employees the flexibility for remote working, there is a higher chance of hiring better talents.

  • Access to global pool of talents

    With the remote working model, you don’t have to hire locals and can expand your talent search globally, reaching a new pool of talents that you may not have encountered while having a physical office.

  • On-demand services

    Beyond just having a physical business address, your office needs such meeting spaces and printing services are usually available on-demand.

  • Curating a professional presence

    Brand perception is key to success – by having virtual offices, you can have presence in the more prestigious office buildings when meeting a client or conducting sales prospecting activities. Credibility’s the name of the game here.

  • Efficient business expansion

    Virtual offices make it easier to work in multiple locations, thus making business expansion a very attainable goal. All you need is just to incorporate your company and get the physical address.

    If you’re planning for an overseas expansion, consider the Market Readiness Assistance grant for local Singapore companies.

If you require serviced offices and/or co-working spaces, you can check our offering here. While there are plenty of advantages, businesses should also understand the downsides of having a virtual office.

Disadvantages of Virtual Offices in Singapore

  • Technological constraints

    If your laptop breaks down, a cell phone gets lost, or the internet is not working, there could be a communication gap between internal employees and customers.

  • Less control

    As more employees are working remotely and have more autonomy, business owners or managers will not really know if their employees are working.

  • Lack of employee interaction

    Virtual offices will ultimately reduce the level of employee interaction. This could create silos and teamwork may be compromised.

Wan Yi

Difference Between Virtual Offices & Private Mailboxes

Private mailboxes represent an alternative to virtual offices, although there is less flexibility for such arrangements. The differences are highlighted below.

Differences Private Mailboxes (PO Boxes) Virtual Offices
Information flow & communication
  • Potential restriction of flow of information as most businesses do not accept a Secretary of State-registered PO box as the official address, resulting in real estate and licensing problems
  • Communication and information flow through the web in an instant
  • Option to receive mail and conduct mail forwarding
  • More expensive than virtual offices
  • Cheaper than private mailboxes
  • Usually do not provide other services
  • On-demand services like copying, printing, meeting rooms, and more are available

Setting Up a Company in Singapore

Singapore is a great place for entrepreneurs and investors to start a company because of reasons like stable political environment, its ease of doing business, and more. Check out our article on the reasons why Singapore is the destination to be when starting a company!

If you need some business inspiration on which industries to venture into in Singapore, you can have a look at the top business opportunities and growing industries before making your decision.


Come to our office or get in touch virtually for a consultation on your company incorporation with employment pass, and other corporate services.


What are the popular virtual offices in Singapore?2021-08-31T19:10:38+08:00

The popular virtual offices in Singapore are Frasers Tower, The Gateway West, and Ocean Financial Centre.

What do virtual offices in Singapore provide?2021-08-31T19:10:56+08:00

A typical virtual office package in Singapore will provide a business with a corporate business address; dedicated telephone and fax numbers; personalized telephone answering; mail handling; and the use of private offices, meeting rooms, and secretarial services on an ad-hoc basis.

Is it expensive to maintain a virtual office in Singapore?2021-08-31T19:11:20+08:00

No, it is not. In fact, virtual offices are less costly than having a rented physical office space.

Can foreigners use virtual offices in Singapore?2021-08-31T19:11:41+08:00

Yes, foreigners can use virtual offices in Singapore.

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