SERVICED OFFICES VS VIRTUAL OFFICES: WHAT ARE THE DIFFERENCES?

Known as one of the Four Asian Tigers (or Little Dragons), Hong Kong's well-developed economic system and strategic location in the APAC market have always attracted businesses worldwide. However, the high demand has inevitably led to increasing traditional office rents – luckily, alternatives are available, including serviced offices and virtual offices: serviced offices provide a full-time workspace with amenities that mimic a traditional office, whereas virtual offices focus on a business address and administrative services to help establish a physical presence. Catering to different business needs, these two workspace solutions allow you to settle effortlessly and legally in the metropolis of Hong Kong.
 

What Is The Difference Between A Virtual Office And A Serviced Office?

A virtual office is a service that provides businesses with a business address and essential administrative services, but not a physical workspace. To legally operate in Hong Kong , you must register at the Companies Registry, open a bank account, file for taxation and obtain licences if necessary. Designed for remote operations, a virtual office offers a credible address for commercial and compliance use, i.e. for business registration and official correspondence. It is also common to include services like mail handling, phone answering, and meeting rooms usage on-demand, making it a cost-effective way to maintain a professional image.

A serviced office is a fully furnished, ready-to-use workspace that includes all necessary amenities and services. Available on flexible lease terms, these offices are concentrated in CBDs like Central,Sheung Wan, Admiralty, Causeway Bay and Tsim Sha Tsui , and they come with work desks, ergonomic chairs, storage, high-speed internet, access to meeting rooms, and on-site support, allowing businesses to start operating immediately without the hassle of setting up an office from scratch.

Differences between serviced offices and virtual offices are their tangible offerings. Serviced offices provide a physical, fully-equipped workspace with privacy and all the essential business amenities where employees can come to work, while virtual offices offer a business address and administrative services without a physical workspace. In terms of services, serviced offices include reception services, IT support, cleaning, and maintenance, creating a comprehensive office environment. On the other hand, virtual offices focus on mail handling, call answering, and access to meeting rooms on demand to help maintain a professional business presence for remote operations.
 

Serviced Offices Or Virtual Offices : What's The Best For You?

Serviced offices and virtual offices essentially target different business needs. Beyond the obvious question of whether you need a physical office, here are some key features to help you find the right option:

Physical Space

The most obvious differences between serviced offices and virtual offices are the physical space offerings, with serviced offices provide a ready-to-move-in, tangible workspace complete with desks, ergonomic chairs and other office essentials; while virtual offices do not offer physical office space for daily use. Serviced offices allows teams to work together in a physical, professional environment daily. In contrast, virtual offices’ business address and services, such as mail handling and phone answering, are designed to support remote operations.
 

Cost

Generally speaking, serviced offices are more expensive than virtual offices because they include actual office space, so the cost naturally covers rent, utilities, cleaning, and maintenance. Virtual offices, on the other hand, are much more budget-friendly as they do not involve the expenses associated with physical space. To give you an idea, serviced offices start from HK$3,500  per desk and virtual offices start from HK$680 per address at Compass Offices. In Hong Kong, renting an office in a Grade A building in Central costs on average HK$1,028 per square metre.  Hence, virtual offices are a great way to minimise overhead costs while maintaining a business presence.
 

Services Included

Built to be a full-time workspace, serviced offices are fully equipped with a wide range of services, including daily cleaning, security system, front desk support, as well as telecommunications infrastructure and shared areas like pantries and lounges. Conversely, virtual offices not only support remote operations by providing services such as mail collection and forwarding, and call answering, but they are also an excellent tool for company registration. Some providers in Hong Kong  further provide professional services like company formation and taxation to meet your needs. 
 

Legitimacy

First, let us assure you that both services are legal in Hong Kong . Serviced offices enhance business legitimacy by providing a dedicated workspace in convenient locations, like Central and Causeway Bay, where employees work and clients can visit. On the other hand, virtual office's business address can be used for company registration and official correspondence to fulfil compliance requirements in Hong Kong, while also establishing a professional image with credible contact details.
 

Flexibility

As part of a flexible workspace, both serviced offices and virtual offices promote flexibility. With monthly agreements, serviced offices are best suited for businesses seeking consistency and a stable, dedicated office space while still appreciating flexible lease terms. Virtual offices also allow businesses to enjoy maximum flexibility and scale their operations as needed, such as moving into a physical office, effortlessly.
 

Client Interaction

For those who need regular face-to-face interactions with clients, serviced offices offer a professional setting in convenient locations for meetings, helping to build strong client relationships. With virtual offices, you can still book meeting rooms for occasional meetings, with a monthly allowance or additional costs. Therefore, they are more suited to businesses that operate online or do not need to frequently meet clients in-person.
 

Target Users

Serviced offices provide one-stop office rental services, offering a fully equipped, scalable workspace without the hassle of long-term commitment and setup. This is the perfect plan for SMEs, multinational enterprises exploring new markets, and those seeking temporary office rentals. Alternatively, if a full-time office is not necessary, whether you’re a startup, freelancer, or remote worker looking for a representative address, virtual offices are a cost-effective and flexible option.

 

How To Get Started?

Since 2009, Compass Offices has been a leading flexible workspace provider in APAC. In our home city of Hong Kong, we offer 10 contemporary serviced office locations in major business districts, including Admiralty, Central, Causeway Bay, North Point, Sheung Wan, and Tsim Sha Tsui. To get started with a virtual office, simply select an office address of your choice, and we will provide you with professional mail handling, a phone number with call answering, and options to access meeting rooms, day offices, as well as other overseas locations. Contact the Compass Offices team today to arrange a tour, or let our team help you effortlessly set up your new virtual workspace online.