Yep.
I messed around with the configuration file/setup for the VM I'm using and it's never been used off my machine.
Even being VERY careful with it, the license association has still managed to get broken once since I set it up this way (a few months ago). I have no idea what I did to cause it as all the relevant identifiers *should* be nailed down on the VM.
So yeah, you can do it. But with great care. Even though I'm now using the IDE on a VM, I wouldn't recommend it to be honest.
Common problem with licensed software on VM's. By no means unique to TestComplete ....