After the outbreak, virtual office is the new shift companies find challenging to cope up with. But mature companies already
Corona pandemic comes as a big opportunity for companies. Companies have now discovered the newer, safer, happier working ecosystem where employees can perform and perform well – the work from home dimension.
Companies still thinking of going back to the old normal, will face multitudes of challenges –
• Savings and surmounting overheads
• Coverage of the loss due to the pandemic
• Combine both and the expenses run the statements in red – for many months ahead.
The retreat is the best option – tightly control the expenses, cut down the office size, delegate and generate. Companies which adopt the mature WFH-based (Work-from-Home) systems might get ahead.
Advantage #1 – SECRECY – Best Weapon to use in Virtual Office
Employees will not know the management’s next move. A strategic advantage a business can play. The old normal saw many eyes and ears witnessing changes, decisions, strategies. The new normal will have new strategies formed behind closed doors. Exiting employees will not be a threat. Business secured.
Advantage #2 – lots of savings – office space, travelling time, lethargy, social pull (people work only 4/8 hours, rest is spent on coffees, smoking, social media).
Advantage #3 – SCALABLE
Totally. Expand the team as and when needed. Remote workers are not demanding. Pay rates are welcoming. Who minds getting paid at home.
Advantage #4 – COMFORT
The comfort of your home heralds better boosted productivity. Skilled workers cannot be prodded with sticks. That was old school. Never worked. Now it’s a total no-no.
Advantage #5 – REGIONAL SCALABILITY
There are clients who demand local resources. So if your website is amped up post-corona, you should be hiring remote workers right now. When the current situation cools off, resource availability, normalising will take many companies by surprise, while your company would be deploying and meeting deadlines. That’s the power of remote work.
Time-saving gets you the reach.
So your hiring mode should be aggressive. Screening should be automated, hiring, orientation will be digital. That’s digitized HR. Simplified, not easy, but will be.
Companies taking the lead will achieve a lead position.
Advantage #6 – LOCALIZED TALENT AVAILABILITY
Trans-continental skill engagement will be a definite plus. Culture-rich work environment brings versatility. Your business is tagged as international. Different blends of intelligent creativity become part of the company. Local talent breeds monotony, fresh ideas are stalled. Not in this case.
Disadvantage #1 – EMPLOYEE TRACKING
how do you track your employee’s progress? Tasks should be well-defined, well-timed, scheduled, monitored, delivered and graded. Automated systems and applications are available.
But if you as a company owner, want to monitor what your employee was doing the whole day, with their desktop screenshots downloaded – that’s a killer. At home, nobody wants to feel the pressure. They want motivation. Carrots.
Disadvantage #2 – Is That the Right Candidate or a Fake One?
That was a regal problem even back then in the old normal. Hiring, screening can be outsourced. Easy and simple. Accounts are outsourced. HR will gain traction if it diversifies for such ecosystems.
Disadvantage #3 – Training & Development will be online –
Instructor-led training will get a hit. Coffee-shops will be the team-meeting norm. online training will gain traction.
What Companies need to do here –
1. Get clarity of organisational management. Who does what, who manages whom
2. Establish a balanced code of collaborating. Bossy styles don’t work. Didn’t, won’t.
3. Acquire automated systems to track tasks, deadlines, schedules, projects. Good for managers, workers.
4. Accept the fact; 70% job completion is better than forced 100% completion. Companies will have to absorb.
5. Idle times were a norm but were not visible. Now it will be, get used to it.
6. Shift the focus on performance-based progress, instead of attendance based one.
Lines are blurred. Prison economies mandated degrees, the new norm will erase it.
Smart companies will diversify, add a new vertical. Smarter have already done it.
What’s your company?
What is Virtual Office Space
Virtual Office spaces provide these features –
- A physical address
- Office-related services, with no to limited overhead and lease expenses
- Employees can work from anywhere, but a virtual office still has a mailing address, phone numbers, facsimile numbers, meeting and conference rooms, and videoconferencing services.
- Receptionist services
- Envelope opening and scanning facilities
- Phone answering services
There are companies like Regus, which is a worldwide virtual office providing company which has office spaces all over the world and there will be one in your city.
But there’s another good way to have your virtual office and business anywhere in the world. Many countries offer business services and registrations which not only provide an office space but a bank account, office address, telephone numbers, mailing addresses –
- Strong economy and a sound GDP
- Politically stable
- Start-ups are exempt for the first 3 years
- No taxes on capital gains
- Tax incentives for companies
- Corporate Tax is charged at 17%, if you prefer doing banking in Singapore
- Local director has to be appointed
- There’s a 15% withholding tax on interest
- 10% withholding tax is levied on royalties
- Your salary will be taxable
- You will need a work permit
- Click on the link to read more about Singapore Work permit
- No local shareholding is required to setup a business
- Businesses can be 100% foreign-owned
- Business setup cost is only €3000 (USD 3500 approx)
- But, you cannot have a completely offshore company; you will have to have a small office, a private apartment or a business center to be registered as business virtual office to open up a company
- Hiring local employees is highly recommended
- Your past records from where you currently reside which include, if any, criminal records
- A notarized copy of your passport is also required to register your business
- Cyprus gives you tax freedom from income, dividends and interest
- But you have to stay in Cyprus for 2 months every year
- Its a European country so you enjoy the legalities of a European country
- Corporate tax rate is 12.5%
- But, the economy is not reliable
- Tax rates can be reduced if you apply for rebates, grants and register with tax relief programs
- Many payment options, banking facilities and opportunities are available as part of the EU
- Malta has the cheapest business registration and licensing programs in all of the EU, which is also transferable
- But, the tax is 35% if you don’t apply for tax relief
- Also you have to necessarily stay in Malta for 183 days in a year to be legally permitted to run your business
- Hong Kong
- Hong-Kong has a very simple tax system; it goes to 8.25% on the first HKD 2,000,000 up to 16.5%
- No sales tax is levied
- Capital gains, dividends are exempt from taxation
- Its easier to sell in China, as Hong-Kong has Closer Economic Partnership Agreement with China
- Paypal, Stripe are available to integrate international payments
- It takes only 3 days to setup a business
- Few permissions are needed
- Only 5% tax is levied on interest, dividends and interest
- Georgia has Virtual Trade Zones – which means, Zero-Tax for IT-related companies
- No taxes are levied on retained profits
- Estonia provides electronic filing with e-residency card
- Its part of the EU, so banking opportunities and standards of the EU are applied
- It takes about an hour to setup a business with e-application/e-residency program
- Estonia gives you the ease of remote management, using e-residency; Estonia is easier to operate business internationally.
- The corporate tax is low at 10%. Taxation on dividends is 5%
- Cheaper registration rates and easy process steps.
- Cheaper accounting services
- Corporate Income Tax is 3% for earning less than 1 million Euros
- 5% taxes on dividends