Do I need to have physical office to operate my business?

It depends on your requirements. When you intend to have employees then you may be required for a physical office for day-to-day functions.

If you are going to keep your materials, then you may require a store or warehouse. It all depends on your requirements based on the nature of business and employing people.

However, if you are managing your business as a One Man Show with your partners only then you may choose not to have physical office to reduce your start-up costs. But, you may choose to have different type of employment modes such as Teleworking, Flexi-Timers, etc.