Potterspury-based Peter Dunkley founded 'depo consulting' in the Northamptonshire village but has since phased out its real base, now operating completely from the digital online community, Second Life.

The company, which employs 20 people, who all work from home, has been added to the 30@Home League, an annual list of the top "homeworking" companies which have no real offices.

Mr Dunkley said: "We used to have an office, but we closed it last year when it became clear we could all work from home using Second Life. We have a virtual office with a virtual receptionist.

"We can stroll around the virtual world, chatting and talking to each other. It's a really efficient way to exchange information.

"You don't need to be technically advanced. If you are part of the Tomb Raider generation it's simple.

"We run training courses to get people up to speed and the cost is low."

The company has been added to 30@Home for the first time this year by compilers Brother and Real Business magazine.

Phil Jones, a spokesman for the publication, said: "Office space in Britain isn't cheap.

"Homeworking can be the ideal business model for companies that want the flexibility to expand without a large investment.

"Companies like depo are a clear illustration of how an innovative homeworking strategy can make a business incredibly successful."

Depo consulting has a New York-based chief architect who designs the company's virtual offices and has helped several real world firms set up 3D office space in Second Life.

Mr Dunkley added: "There are so many advantages to working on Second Life rather than an office.

"For a start, it is carbon neutral. You don't waste time commuting. It becomes possible to recruit from a worldwide pool; we employ people in Finland, Germany and the US.

"This approach makes travelling to meetings in a normal 'real-life' office look pointless."

The firm's virtual office is manned by one of depo's team of virtual people, which include characters named Marissa Meltzer and Chester Orbit.