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Some founders launch without a central company office because they want work to happen across locations rather than around one workplace. That can widen where a team is recruited and give employees more choice about where they work, but it does not guarantee lower costs or better results. And despite the headline’s “more” framing, the available figures do not establish that office-free startups are becoming more common.

Here, “without a headquarters” means there is no central company office where employees are expected to work. A company may still need a legal domicile, registered address, or administrative base. That distinction matters: having a globally distributed team is not the same as having no headquarters.

What does it mean for a startup to have no headquarters?

An office-free company has no central workplace where employees are based. It may still have legal addresses or entities for corporate administration and employment. The phrase describes how the company organizes work, not whether it has a legal home.

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It is also useful to distinguish three arrangements:

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Model Does a company office exist? How the arrangement typically works
All-remote No employee-occupied company office Work is organized across locations, with communication and key information shared remotely.
Remote-first May have a headquarters or other office Remote work is a normal operating mode, though some staff or leaders may work from a central location.
Hybrid or distributed May have one or more offices Employees work across home, office, or other locations; teams may be spread across sites.

These labels do not dictate where an employee must sit each day. GitLab’s all-remote terminology says remote work need not mean working from home; people may use coworking spaces or other locations. The Work-From-Home Field Guide, co-created by GitLab and Herman Miller, notes that equipment needs, available space, and location preferences vary by worker.

Are more startups launching without a headquarters?

The figures available do not establish that trend. Gusto’s 2025 New Business Formation Report, based on a survey of 1,000 founders about businesses started in 2024, found that the share of new businesses allowing fully remote or hybrid work fell from 40% in 2023 to 34% in 2024. That combines remote and hybrid arrangements; it does not measure companies with no headquarters.

European figures address a different question. The European Startup Initiative’s 2025 Startup Heatmap Europe Annual Report, reporting the Startup Heatmap Europe Survey 2024, says 52% of surveyed startups had employees based abroad, 25% had branches abroad, and 8% had relocated their headquarters internationally. These numbers describe cross-border teams and headquarters moves, not elimination of a headquarters.

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So “why more” is best read as a question about why some founders choose the model—not as a proven increase in the number of office-free startups.

Why do some founders choose an office-free model?

Recruitment can span more locations

Without a single office as the default workplace, a startup may consider candidates in a wider range of locations. That can be attractive when a founder needs specialized skills or wants to build a team across regions. It also adds practical work: hiring across borders can involve different employment, payroll, tax, and immigration requirements, and the relevant rules depend on each country.

Work need not revolve around one daily workplace

Founders may value flexibility in where employees work and the ability to avoid making daily attendance at one office central to the company’s routines. That is a preference and a possible operating advantage, not evidence that every employee will be more productive or that the company will spend less overall.

A distributed structure may suit a geographically spread team

For a team already located in different places, an office-free setup can avoid treating one location as the default center of company life. GitLab co-founder Sid Sijbrandij has described this practitioner view: “The more widespread an organization is, the less it benefits from being colocated.” It is a perspective on how to scale, not a controlled finding that applies to every startup.

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What does an office-free startup need to make work?

Removing a shared office does not remove the need for coordination. It changes how teams handle decisions, information, and relationships. GitLab’s all-remote guidance emphasizes asynchronous work and documentation as part of its operating approach.

  • Written processes: Document decisions, ownership, and recurring procedures so employees in different places can find the same information without relying on hallway conversations.
  • Asynchronous communication: Make routine work possible without expecting everyone to be online at the same time. Agree on how urgent issues are raised and where decisions are recorded.
  • Remote onboarding: Give new hires clear first steps, access to tools and documentation, named contacts, and structured opportunities to ask questions.
  • Inclusive meetings: When some leaders or colleagues gather in person, ensure remote participants can contribute and that decisions made in the room are documented for everyone.
  • Social connection: Create deliberate ways for colleagues to build relationships; do not assume informal contact will happen automatically.
  • Workspace choice: Treat coworking or another workspace as an option where useful, not a universal requirement. Needs and constraints differ among employees.

These are operating practices drawn from a company handbook and practitioner guidance, not proof that any one policy guarantees productivity, retention, or startup success.

What are the trade-offs of having no central office?

  • Less informal contact: Employees may miss spontaneous conversations and the social cues that can help people feel connected.
  • More deliberate onboarding: New hires cannot depend on observing nearby coworkers or asking casual questions in an office.
  • Time-zone coordination: A team spread across regions may have fewer overlapping work hours, complicating meetings and quick decisions.
  • Uneven access to influence: If executives or a subset of employees regularly meet in person, others may be left out of discussion unless the company intentionally levels participation.
  • Costs do not disappear automatically: An office-free policy alone does not establish that a startup’s total operating costs will fall. The available figures do not quantify office savings, productivity, survival, or fundraising effects.

GitLab’s guide to all-remote work and its drawbacks discusses challenges such as isolation and coordination. It is useful practitioner guidance, but it should not be mistaken for independent causal evidence about every company.

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How can a startup hire across countries without an office?

Having employees in multiple countries does not necessarily mean the startup has a legal entity in each one. A company needs to decide how each worker will be engaged and paid under the applicable local rules. GitLab’s guidance on hiring an all-remote team globally describes employer-of-record (EOR), professional-employer-organization (PEO), and local-entity approaches as possible arrangements, while warning that coverage and service quality vary.

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An EOR provider may act as the legal employer for an international hire. For example, Remote describes its EOR service in those terms. That provider description is not legal advice, and an EOR should not be assumed to resolve every tax, immigration, employment, or permanent-establishment question. Founders should verify the provider’s scope and obtain country-specific advice before hiring.

What does an established all-remote company show?

GitLab provides a documented example, not a universal blueprint. Its handbook says the company has no company-owned offices and distinguishes its all-remote model from remote-first companies that may retain a physical headquarters. The company’s remote-work starter guide also describes a geographically broad workforce.

GitLab co-founder Sid Sijbrandij once framed the idea this way: “It’s not that we don’t have a headquarters, it is that we have 1,000+ (and growing) headquarters!” The line is a metaphor for distributed work, not a literal count of legal headquarters. A startup considering this model should evaluate its own hiring needs, team locations, communication habits, and compliance responsibilities rather than assuming one established company’s practices will transfer unchanged.

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