Last updated: October 2026

When you are starting a business, the cheapest virtual office plan can look like the obvious choice. But the monthly price is often not the full cost. Many low-priced plans charge separately for things you will need, such as mail forwarding, scanning or using the address for company registration. This guide explains the most common hidden costs and how to work out what a plan will really cost you over a year.

Common hidden costs in cheap virtual office plans

1. Registered address use
Some low-cost plans only give you a mailing address. Using the address as your company’s registered office with ACRA may be a separate, higher-priced plan. Check this first if you are incorporating.

2. Mail forwarding
Receiving mail may be included, but forwarding it to you may be charged per item, per batch or as a monthly add-on, plus postage.

3. Mail scanning
Scanning letters so you can read them online is often an extra, sometimes with a limit on the number of pages or letters each month.

4. Set-up fees and deposits
Look out for one-time set-up, admin or KYC fees, and refundable or non-refundable deposits.

5. Contract length and renewals
The lowest monthly price may only apply to a long contract paid upfront. Check whether the plan renews automatically, at what price, and how much notice you must give to cancel.

6. Add-ons you may need later
Meeting rooms, phone numbers, call answering and courier handling are usually charged separately. If you expect to need them, include them in your comparison.

How to work out the true yearly cost

  1. Start with the plan price for 12 months, including any set-up fee.
  2. Add the cost of using the address for company registration, if it is not included.
  3. Estimate how many letters you will receive each month and add forwarding or scanning charges.
  4. Add any add-ons you are likely to use, such as a few meeting room bookings a year.
  5. Check whether prices include GST.

Do this for each provider you are considering. A plan with a slightly higher monthly price but more included can work out cheaper over a year.

Questions to ask before you pay

  • Can I use this address as my registered office with ACRA on this plan?
  • What is included each month, and what is charged extra?
  • What is the minimum contract period, and does it renew automatically?
  • What are the cancellation terms and any early termination fees?

Cheap is fine, as long as you know exactly what you are paying for. When you are ready, compare virtual office packages side by side, including what each plan includes. For more checks before signing, see our guide to checking a virtual office provider.