Various office formats, which one to choose?

• Update:2023/11/14

Some people who are considering starting a business may be thinking about renting an office to work from. However, there are many different types of offices, including virtual offices, coworking spaces, shared offices, and serviced offices.

Therefore, this article will list the characteristics, advantages and disadvantages of various office formats. If you are wondering which office to choose, please refer to this article.

Features, advantages and disadvantages of virtual offices

A virtual office is a form of office space where you rent only basic information such as an address and phone number to start a business. If mail or phone calls come to the virtual office, they will be forwarded to another location (such as your home).

Since it is called virtual, there is no business space as a space. However, some virtual offices offer the option of renting a business meeting room or conference room.

Advantages of a Virtual Office

1. Get a prestigious address at a reasonable price

Virtual offices are basically free of deposit and key money when moving in, and the monthly rent is very reasonable, ranging from several thousand yen to 10,000 yen, which leads to reductions in initial and running costs.

Furthermore, many virtual offices are located in major train stations and business districts. Thus, the ability to set up an office in a prestigious location with high brand value goes a long way in enhancing the credibility of the company.

2. Possible to register a corporation at an address other than your home address

For example, if you run a business from home, you may not feel comfortable listing your home address on your business cards or website. Therefore, a virtual office allows you to register your corporation at an address other than your home address.

Disadvantages of Virtual Offices

1. Some businesses may not be able to obtain permits

Virtual offices may not be approved for official certificates in certain industries. For example, please note that it is difficult for industries that require individual dedicated space (e.g. lawyers, tax accountants, etc.).

2. It could be discovered that the office is a virtual office

With virtual offices, many companies will use the same address, so a search on the Internet may turn up many companies with the same address. This can lead to a loss of credibility because people will know that the company is a virtual office and that it does not have an actual office.

3. Difficult to open corporate bank accounts in recent years

In recent years, it has become more difficult to open a corporate account at a virtual office due to the impact of many accounts used in crimes such as bank transfer scams that were registered at virtual offices. If you are considering opening a corporate account, we recommend that you choose a large, well-run virtual office.

Features, advantages and disadvantages of coworking spaces

A coworking space is a type of facility where people with different jobs gather in one open space and share a work area. In most cases, the place where the work is done is an open space like a library.

Much like shared offices, coworking spaces focus on community building, so most people use them with community building in mind.

Advantages of Coworking Space

1. Have the opportunity to interact with each other

When you work alone, it is difficult to have opportunities to interact with people in other industries as well as those in the same field. However, coworking spaces are open spaces that provide more opportunities to interact with other users. This allows you to exchange information and possibly create new business opportunities.

2. Available as a meeting place

Many people may use cafes or restaurants for meetings with business partners. However, in such cases, the surrounding noise and stares can be distracting, making it difficult to have a calm and relaxed conversation. Many coworking spaces have conference rooms and meeting spaces attached, so you can talk in peace.

Disadvantages of coworking space

1. Difficult to ensure privacy

Basically, the work area is hardly partitioned, making it difficult to ensure privacy. For example, there is a possible risk of others seeing your computer screen or documents.

2. The sound of the surroundings can be distracting…

Since it is an open space, there are people around. Especially in a coworking space with many users, the atmosphere can become lively and noisy, and you may be bothered by talking and noise. Therefore, you may not be able to work comfortably.

Features, advantages and disadvantages of shared office space

As the name implies, a shared office is a type of office where multiple users sit in an unoccupied seat and share a workspace on a free-address basis. Recently, there are also facilities with booths and other individual seating for one person, café-style facilities, and a wide variety of other types of shared office space.

Advantages of Shared Office Space

1. Ability to interact with other users

Since the workspace is shared, the biggest advantage is that you can interact with other users. Since you can communicate with people from various industries there, it may lead to new business opportunities.

2. Good location

Shared offices are located in prime locations, such as in central Tokyo or near major train stations. This makes it easy and convenient to commute to the office. Having a prestigious address also increases your social credibility.

3. Access to shared facilities and lower costs

Shared office space comes with no (or reasonable) security deposit or key money, and office furniture and office equipment necessary for work are also provided in advance, so initial costs can be significantly reduced. In addition, the monthly rent is typically 20,000 to 30,000 yen in Tokyo, which is cheaper than renting an office, leading to a reduction in running costs.

In addition, many shared offices are equipped with shared facilities such as meeting space and conference rooms, which can be conveniently used for business meetings with business partners.

4. Corporate registration also available

Corporate registration is possible using the address of the shared office. This is therefore recommended for those who are considering starting a business.

Disadvantages of shared office space

1. Noise can be a concern…

Since shared offices are surrounded by other users, noise such as talking and noises can be distracting and may interfere with business operations.

2. Careful handling of personal information

Since shared offices are open spaces where an unspecified number of people come and go, there is some concern regarding security. Please be careful when handling personal information such as contracts, confidential documents, and computer data.

Features, advantages and disadvantages of serviced offices

A serviced office is an office that is pre-equipped with office furniture, office automation equipment, etc., to provide a proper working environment.

Advantages of renting an office

1. Reduced initial costs and immediate move-in

Since office furniture and OA equipment are fully furnished and do not need to be purchased, initial costs can be greatly reduced. Of course, you can move in immediately after signing a contract.

2. Corporate registration is possible

Basically, it is possible to register a corporation at the address of the serviced office. This makes it safe for those who want to start up a company.

3. Good location

Many serviced offices are located in prime locations such as central Tokyo and major train stations, and are in excellent locations. They are convenient and easy to commute to the office.

Disadvantages of renting an office

1. Costs are high depending on the use of options

Many serviced offices offer options such as call forwarding service, receptionist service, and secretarial service. However, the more you add these options, the more the total cost will be. Therefore, it is important to confirm in advance how much the price will be.

2. Layout cannot be changed

Since the interior and office automation equipment are pre-installed, it is not possible to choose what suits one’s own needs. Therefore, some people may feel cramped for use.

Summary

Here we have looked at the features, advantages and disadvantages of virtual offices, coworking spaces, shared offices, and serviced offices. If you are not sure which office is right for you, please refer to this article to find out which one is best for you.

Also, if you are interested in renting an office and are looking for one in Tokyo, please consider Tensho Office. Tensho Office has inexpensive serviced offices in prime locations in Tokyo such as Shinjuku area, Ikebukuro area, Minato-ku and Chuo-ku.

Initial and monthly rent can be reasonable, and corporate registration is also available. If you are interested, please feel free to contact us.