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Difference of a virtual office vs. a real or a shared office in Prague

What is the difference between virtual sidlo (registered company address), a real sidlo and a shared office?

Lets clear up some common questions so that everyone understands. What is the difference between a virtual sidlo and a real sidlo? Also, find out about the benefits of shared office.

Real Sidlo (registered company adress)

At the beginning of 2015, a new definition of real sidlo was created. It is common for companies to have a sidlo in Prague: they do their business in another region and divert their tax payments through Prague. For greater clarity to determine the local jurisdiction for a particular Financial Office, tax payers that were registered by the end of 2014 have to announce their address correctly to the appropriate tax authorities.

The General Directorate of Finance (GFŘ) defines a real sidlo as:

  • the location where vital decisions regarding the company are made or the place where the company's management meets
  • the location where the performance of real economic activity is ensured (the mere existence of a mailing addresses is not sufficient to determine the place of business for the company)
  • the tax payer should be regularly contactable and traceable at the sidlo
  • a taxable person should provide the required relevant cooperation from the location to ensure proper tax governance and to let them exercise their legal powers (such as Tax Office checks for example)

In practice, this means that the head office may be different from the actual sidlo of the company, but it must report this fact and should administer taxes at the company's real sidlo.


Virtual Sidlo

The definition of a virtual sidlo hasn't changed. It is still true that it is the location where the company can registers it's address. However you don't need to engage in economic activity at this location. In reality, this is the ideal solution for those who don't need to rent an office and don't want to have their home address as the location of their business. It's especially suitable for non VAT prayers.

A virtual sidlo has several benefits:

  • the costs for renting a virtual sidlo are a lot lower than the costs of a physical office
  • if you register your business address in Prague, it can attract more potential business partners
  • you can take advantage of additional services such as accepting mail or a lump sum to rent an office or conference room to meet with clients
  • an ideal solution for starups


Shared Office

Also known as co-working, this is the preferred solution for those who don't need a virtual sidlo and have their business address registered at their home. Thus, they just rent an office space that is shared with other people but everyone is working on their own projects in different fields. Benefits can be group brainstorming and a mutual inspiration among “colleagues”. Offices can be rented in groups with others or independently to maintain peace and privacy.

Are you still lost in the terminology of real and virtual sidlos even after reading the article? Don't hesitate to contact us (Comeflex business services Prague), we'll be happy to discuss your issues and help you find the right solution.


This information is brought to you by PragueConnect.cz in cooperation with our partner Comeflex Prague