Small and medium enterprises are increasingly using virtual offices, according to a business support service.

Hina Joshi, a business expert at government agency Business Link, said that using virtual office facilities enables companies to give the impression they are large and established firms.

"A lot more people are tending to use virtual office facilities. It gives the impression that they're a lot bigger than they actually are," she continued.

"Rather it being someone trading from their bedroom at home it will look like they're a lot more established."

Speaking about the issue of registered offices, she added that some firms use their accountant for their registered office.

According to research carried out by Barclays, a record 471,500 new businesses started up in 2007, the highest annual volume since the company began tracking the market in 1988.

This is a three per cent increase on 2006 and 17 per cent up on the original 1988 figures, says the firm.


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