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To set up a company in China, you must have a “registered address”. For venture capitalists who do not want to spend too much money in the early stage, should they choose a small physical office or a virtual office? Today we will analyze the two concepts of “business center” and “virtual office” in detail.


What is a business center?

Business centers, often called serviced offices, are usually located in the central business districts of major cities around the world. The business center is an office or office building with complete facilities and registered and managed by a facility management company incorporation. The management company divides the entire floor of the office into independent small units and leases them to other companies.

The business center is fully operational in all aspects and is suitable for immediate move-in. Typically, serviced office operations are configured to allow various office sizes, ranging from 1 to 10 people. It is very suitable for domestic investors who start a business for the first time or foreign investors who enter the Chinese market for the first time.

Compared with traditional office spaces, business centers generally provide all necessary facilities and services, equipped with workbenches, chairs, decorations, telephone systems, Internet and most facilities are shared.

The tenants of the business center share a common reception area, meeting rooms, IT support services, secretarial and administrative services.

Business center advantages


1. Register in a prime location to enhance the company’s image

Commercial centers are usually located in the central business district or prime business district in the city center, close to major transportation hubs or urban landmarks, which can enhance the image of start-ups at a lower cost and give entrepreneurs a more professional reputation.

2. Include customer service team

The business center has a reception team to ensure the normal operation of your work space. Not only do you no longer need to hire reception and administrative staff, but you also save valuable management time, thus saving a lot of money.


3. Focus on your business growth

The business center is equipped with basic facilities, including internet, security, cleanliness and general management facilities. All your time and money can be used to establish business and use your creativity to establish more business contacts, etc.

4. Tenure flexibility

In sharp contrast to the typical multi-year office leasing structure, the lease period for serviced offices is as short as 3-6 months and as long as one year, and can be renewed afterwards.

5. No investment in fixed assets

Renting a traditional office usually requires decoration and purchase of various equipment and furniture. Choosing a business center can save a lot of investment in fixed assets.

6. Network Opportunities

The business center gives you the opportunity to establish contacts and cross-sell with various other businesses in the same building. You can have the opportunity to communicate and discuss different ideas with a variety of professionals, which is very important for start-ups that lack resources

7. No recovery responsibility when relocating

Even if you move out of the office, there is no need to worry about dilapidation and repair responsibilities.

What’s a digital workplace?

A digital workplace is typically a price-added provider of a business middle. It provides company registration hire contracts, in addition to mail sending and receiving services and telephone answering services.

The so-referred to as “virtual” means that the enterprise center does now not provide real workplace area. But, hire and assets files can be supplied to ensure clean commercial enterprise registration and bank account beginning.

The virtual office is especially suitable for the following domestic individuals or foreign investors

1. Hope to start a business at the lowest cost.
2. Hope to test new markets at a controllable cost.
3. Long-term work at home or abroad, but requires a decent registered address.
4. Need localized service and help.

Advantages of virtual office


1. Quick start

From finding the office to signing the lease documents, the cycle of renting a traditional office usually takes 1-2 months, but the entire process of renting a virtual office can be completed within 1-2 days.

In China, it is impossible to register a company with a home address. You must find a company address to register. Select a virtual address to quickly start the company’s registration application.

2. Minimum rent

The rent of a virtual address is generally 8000-10000 yuan a year. The annual rent of a virtual office is one month lower than that of an ordinary office. Considering that the company may not be able to start operations immediately during the preparatory stage, renting a virtual address for company registration is the most cost-effective addressing method.

3. Virtual Assistant Service

The virtual assistant service saves you the trouble of hiring a full-time or part-time assistant yourself. You will get a professionally trained receptionist ready to help you at any time. They can also help you deal with government and bank inspections, and help you receive couriers and letters.

4. Professional conference facilities

If you need to hold a business meeting, the virtual office can provide limited-time use of the executive lounge or meeting room as needed, and you can enjoy good facilities and meeting services with a pay-per-use fee.

5. Test new markets at low cost

The virtual office provides you with broad opportunities to expand your business and enter new markets, allowing you to enter a city with the lowest cost and maximum patience.

Investors can formulate long-term strategies and make large-scale investments after fully testing the Chinese market.



Choose a formal business center

You should choose a full license, a brand, and a business center with a long history.
1. Incomplete business center licenses will affect the company registration procedures; secondly, if the business center lacks experience in dealing with government departments and banks, it will cause unnecessary trouble for the enterprise; thirdly, if the business center is closed due to poor management , Will affect the normal operation of the enterprise.
2. Do not use the business center to apply for a special license
In China, certain types of companies require special licenses to operate, such as food companies, restaurants, stadiums, beauty salons, etc. These special permits also have requirements for office space, usage, and housing hardware.

If the above-mentioned company is registered with a virtual address, it may not be able to operate because it cannot register a special license, or it may be classified as an illegal operation.