According to recent employment statistics, at the start of 2012 London comprised over 806,000 private sector businesses, with a staggering 768,000 in the south east.  When you consider that together these regions account for a third of all businesses, it's no wonder more and more people are flocking to the capital city to do business.

With the recession still very much biting, thousands of people are leaving their office jobs to go freelance - or better still, start up their own company. Thanks to City of London serviced offices, it's now easier than ever to get started.

If you're not a resident of London it can be hard to know where to begin when choosing an office space to work from and it might be the most important decision you ever make. In terms of business, London is very much divided by sector, with dedicated districts and hotspots for everyone from art insiders to media professionals and financial experts.

Your choice of office location can even affect employee morale. Choose somewhere lively and vibrant with plenty of eateries and bars for casual drinks after work and your employees will thank you for it. Opt for somewhere shut off from other local businesses, however, and you may find entertaining clients a struggle.

If you live and work in London, you'll know that you're never too far away from a tube station.

Choose to do business in London's swanky Mayfair and you'll be bang smack in the centre of the city, with excellent transport links to other popular areas. However, bear in mind that rental prices will be high and may not be viable for first time business owners or freelancers.

As one of the most prestigious areas in London, Mayfair offers close proximity to some of London's top businesses and companies. If you're spurred on by others' successes, you'll absolutely love being situated here.  Getting around London is easy from Mayfair too; it's located next to Bond Street and there are a few major tube stations dotted in and around the area.

If the hustle and bustle of London is what you love about the city, Covent Garden is another great option. Known as the centre of commerce, it offers good transport links and a unique blend of historical and contemporary landmarks and venues.

There are a wealth of areas to choose from in London, from the thriving financial districts to the trendier spots for start-up businesses and arty types.

Looking for somewhere employees can enjoy relaxing after-work drinks? Rent office space in Kings Cross - situated within the borough of Camden, it's a popular spot for socialising, offering plenty of popular pubs and restaurants. Your location near to all local amenities can help boost morale and get the most out of your team.

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It's important to check out the local area well in advance of signing up for office space. Is it a good fit for your business? It's no good renting space in Hackney (a well-known spot for art professionals) when really you'd like to be based in one of London's financial areas. Do your research and your new business will flourish.