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Though for most online businesses an office is not required, since they can conveniently work from home, many are forced to consider opening an office. Going to office is considered to be very respectable in India, as people are extremely rigid and do not make allowances for different business models.
For online business owners, working from home can be a major problem, due to the close monitoring using wifi and bluetooth connections by security agencies.
Hence many prefer to rent a office just to escape the harassment, as people who are working at home are considered to be doing nothing, and in some cases, careless powerful officials will
1. Falsely claim that their young lazy girlfriends are involved in the business without doing anything to get these young women very lucrative permanent government jobs with pension.
2. when the home business is successful, these officials instead of acknowledging the business owner, will falsely spread rumours that the business is illegal, in the worst case, the business owner is involved in money laundering, and threaten to freeze all the bank accounts of the business owner, without any proof.

The extremely powerful officials in the indian internet sector are the worst in this form of blackmail, putting the vulnerable business owner under surveillance for years, to support their false allegations and assumptions. These officials refuse to acknowledge that the business owner has invested very large amounts on domains, as a result they get better than usual returns compared to people who only provide services. If the same money was invested elsewhere like bank fds the business owner would have got better returns, indicating their lack of vision.