Windows 7 includes a little-known new feature called Virtual Wi-Fi, which effectively turns your PC or laptop into a software-based WiFi router.

Virtual Wi-Fi Router

Any other Wi-Fi-enabled devices within range a desktop, laptop, an iPod perhaps will “see” you as a new network and once logged on, immediately be able to share your internet connection.

This will only work if your wireless adapter driver supports it. Check with your adapter manufacturer and make sure you’ve installed the very latest drivers to give you the best chance.

Once you have driver support then the easiest approach is to get a network tool that can set up virtual Wi-Fi for you.I go for “Virtual Router”. Virtual Router is free easy to use and you can share your internet connection very quickly. You can find the software in the net.

The idea behind the Virtual Wifi is simple, the operating system can virtualise any compatible wireless adapter to make it appear as though you’ve as many additional adapters as you need.

Another process of setup without installing any Additional Software:-

The set up process is simple and for this you have to deal with Command prompt. Click Start, type CMD, right-click the Cmd.exe and select “Run as Administrator” (How to run as Administrator) .Now type the following command

netsh wlan set hostednetwork mode=allow ssid=MyNet key=MyPassword

press enter. Replace “MyNet” with the name you’d like to use for your custom network, and “MyPassword” with a password that’s a little harder to guess.

After that type the command

netsh wlan start hostednetwork

Press enter.

Now go to Control Panel > Network and Internet > Network and Sharing Centre > Change Adapter Settings,
right-click your internet connection and select Properties.
Click the Sharing tab, check “Allow other network users to connect.”. choose your virtual Wi-Fi adaptor