An organization that employs people who work at home. Instead of commuting to an office every day, email, instant messaging, data and videoconferencing are used for communications between employees and management.
The most extreme virtual company has no central office at all, and everyone works from home, including top management. However, this is both an advantage and disadvantage. Companies can hire people no matter where they live, but as more companies adopt the virtual environment, those same employees have more opportunities to change jobs whenever they choose to do so. See telecommuting