Virtual office vs a leased office when you need VAT registration
Quick answer
Both can be used to register a company; they diverge at VAT registration, where the officer must see that a real, contactable place of business exists. A serviced address clears that bar only with a consent letter, the owner's title deed or head lease, a location map, a photo of the company signboard actually mounted, and someone present to receive documents in working hours. A leased office clears it more easily, but brings rent, common-area charges and a lease commitment.
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View role scopeSide-by-side comparison
| Aspect | Use a serviced address that supplies the full premises paperwork | Lease your own office space outright |
|---|---|---|
| Usable for incorporation | Yes, with a written consent from the owner plus proof of their right | Yes, using the lease in the company's name |
| The VAT registration hurdle | Passable, but examined more closely because several companies share the address | Easier once there is real working space and staff on site |
| The site visit | Needs a permanently mounted signboard and someone to receive documents in office hours | Also needs a signboard, but the space itself answers the operating question |
| Yearly cost | A fixed annual fee covering mail handling and meeting-room use per package | Rent, deposit, common fees, electricity, internet and initial fit-out |
| Flexibility when plans change | Cancel or move at the end of a short term | Bound to the lease term, usually with an early-exit charge |
| How counterparties read it | A business-district address, though some counterparties ask to visit | Clients can be received in your own space immediately |
| Team fit | Teams working off-site or selling mainly online | Teams that sit together, hold stock, or receive walk-in clients |
Choose this when — Use a serviced address that supplies the full premises paperwork
- The business is new and the team's shape is still unknown
- Most work happens at client sites or remotely
- You want a business-district address without a long lease
- Shareholders are overseas and need someone to receive official mail
Choose this when — Lease your own office space outright
- There is stock to store or equipment to install permanently
- A specific licence is needed that prescribes the physical space
- Several full-time staff must work together daily
- Clients come to the premises to be served
Documents to prepare
- Consent letter from the property owner with a certified copy of their ID
- Title deed or head lease showing the consenting party's right
- A map showing how to reach the premises
- Photographs of the building, the house number and the mounted company signboard
- Current company affidavit and shareholder list
- Evidence that trading has begun: quotations, client contracts or purchase records
Step-by-step process
1. Check the owner's right first
Confirm whether the person consenting owns the property or is a tenant entitled to sub-allow use. A tenant needs that permission written into the head lease. This is the single most common reason applications come back.
Duration: 1–3 days
2. Mount the signboard and photograph it properly
Mount a signboard bearing the registered name so it is visible from the street, then take both a wide shot showing the building and its number and a close shot where the name is legible.
Duration: 1 day
3. File the VAT application
Submit with the premises bundle and the evidence of trading, describing the business so it matches the registered objectives — otherwise the officer will call for clarification.
Duration: Depends on the area office's queue
4. Have someone ready for the visit
Officers may arrive unannounced. Keep someone able to receive documents during office hours and a company file ready for immediate inspection.
Duration: Ongoing after filing
Pitfalls to avoid
- Using an address crowded with registered companies while having no signboard of your own
- A consent letter signed by someone with no right over the property, which voids the whole bundle
- Describing an activity in the application that does not match the registered objectives
- Nobody to receive mail in working hours, so official letters are returned and the file stalls
- Moving and notifying only the registrar, forgetting the VAT-side change notification
Frequently asked questions
Can VAT registration really succeed from a serviced address?
Yes, and it happens routinely — but you must show a real place of business, not just a name on an envelope. What carries it through is a complete ownership-right bundle, a signboard actually mounted, and someone present to take delivery in working hours. With those three in place, rejections become rare.
When does the officer visit?
There is no fixed schedule and usually no notice. Some area offices inspect while the application is pending, others after approval. Assume a visit is possible throughout the early period and keep the premises and signboard matching exactly what was filed.
Is sharing an address with other companies a problem?
It is lawful but draws closer scrutiny, because the officer must see that each occupant genuinely trades. Reduce the friction with your own distinct signboard, an identifiable room or space, and commercial documents showing real transactions.
With revenue below the threshold, should we register anyway?
It depends how much you buy from VAT-registered suppliers. If most costs already carry input VAT and your clients are companies wanting tax invoices, registering early helps with input credits and winning work — at the price of monthly filings even in months with no activity.
What is involved in moving from a serviced address to a real office?
Notify the registrar of the new location and make the VAT-side change too, then update the address on every document you issue — tax invoices and receipts alike — to match the new registration. Leaving old addresses on documents becomes an issue in a later audit.
When does VAT registration become mandatory, whichever address you use?
The duty is triggered by turnover, not by premises: once annual turnover passes the THB 1.8 million mark, the Revenue Code leaves only 30 days to lodge Por Por 01. The address type does not change the duty, so assemble the premises bundle before revenue nears the threshold — a returned application must not push you past the deadline.
Which Revenue Department form covers a change of address?
Changes to the VAT registration certificate, including relocating the place of business, use form Por Por 09 — separate from notifying the DBD registrar. Confirm the filing timing with the area Revenue office before you move: a move across areas may need advance filing and can trigger a fresh site visit.
Decision checklist
Tick each line. If more than two remain unanswered, ask us before you commit.
Where to read next
More than a filing service — we advise you
Before choosing, answer one question: when an officer arrives unannounced, will someone open the door and will the company signboard be visible? If both answers are yes, a serviced address is enough. If not, leasing real space costs less than the time lost to refiling.
Sources
Other decisions usually made at the same time
- BOI vs Amity Treaty for foreign-owned business
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- Registering for VAT early vs waiting for the threshold
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- Closing a company vs keeping it dormant
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Thai Law & Accounting Services — attorneys and licensed accountants · Reviewed by a Notarial Services Attorney registered with the Lawyers Council of Thailand. · Updated 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.