Subcontract to foreign service provider Subcontract to foreign service provider
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  1. #1

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    Default Subcontract to foreign service provider

    hello - hopefully this fit in here - can I (based in UK) subcontract work to a foreigner service provider outside the UK/EU? Do I need any special precaution on the contract or validation that the service provider is registered in their country? Thank you

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    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by ID1301 View Post
    hello - hopefully this fit in here - can I (based in UK) subcontract work to a foreigner service provider outside the UK/EU?
    Hello.
    Let's start off with a question: Are you set up as a limited company or are you working some other way?

    If you are a limited company, you can set up contracts with other companies, anywhere you want. You'll want your accountant to help in terms of payments, VAT, taxes, duties, tariffs, etc, and check your bank's costs for foreign transactions.

    Quote Originally Posted by ID1301 View Post
    Do I need any special precaution on the contract or validation that the service provider is registered in their country? Thank you
    That is entirely up to your company to make that decision. What level of risk are you prepared to accept?

    The other question you might want to ask is: will your end client accept you outsourcing your work offshore?
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  3. #3

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    Thank you - so technically as a limited company I could have a contract with anyone anywhere in the world (for example I meet a nice chap in India and he seems switched on, I can buy his services (assuming I can subcontract)) with standard contract.

    I have no duty to check that the person is set up in his home country to provide invoices and the likes? I receive an invoice, I pay it to the bank details provide, everyone is happy?

    Seems too easy to be true!

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    Quote Originally Posted by ID1301 View Post

    Do I need any special precaution on the contract
    Contracts typically address where remediation can take place - i.e. which country's legal system and laws are used when in dispute.

    (which feeds into your other questions... if you end up in dispute and the case is heard in Timbuktu, could you get the result enforced / get your money - this is one for your risk calculation)
    Last edited by mjcp; 22nd May 2020 at 12:45.

  5. #5

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    Quote Originally Posted by ID1301 View Post
    hello - hopefully this fit in here - can I (based in UK) subcontract work to a foreigner service provider outside the UK/EU? Do I need any special precaution on the contract or validation that the service provider is registered in their country? Thank you
    Sure, you can contract with any entity you want, anywhere you want. That doesn't mean you should or that it's risk free. What is the jurisdiction and governing law? What are the risks of non-payment? How will you arrange for payments? What are the rules surrounding withholding taxes? What level of PI insurance do you need? Are you in agreement about where and when the work will be done (remember, a contract is not a visa)? So, yes, there are lots of risks with any contract, and they increase when contracting across jurisdictions, but so can the rewards.

  6. #6

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by ID1301 View Post
    I have no duty to check that the person is set up in his home country to provide invoices and the likes? I receive an invoice, I pay it to the bank details provide, everyone is happy?

    Seems too easy to be true!
    It's too easy, if you don't actually read what was written, or you ignore the bits you don't like.

    Your duty is to your company and your client.
    If your client says no, then it's a no, unless you're prepared to take that risk. If the job involves accessing the client's systems, access to business-sensitive date, falls within GDPR, etc, then it's extremely likely they will say no.
    If, on the other hand, your client is OK with it, then you need to have the correct insurances in place - because you can work on the principle that whether or not the person seems "a nice chap", you are the one who is responsible.
    You are also the one responsible for ensuring that your company is paying the correct taxes and acting legally.
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    Quote Originally Posted by jamesbrown View Post
    Sure, you can contract with any entity you want, anywhere you want. That doesn't mean you should or that it's risk free. What is the jurisdiction and governing law? What are the risks of non-payment? How will you arrange for payments? What are the rules surrounding withholding taxes? What level of PI insurance do you need? Are you in agreement about where and when the work will be done (remember, a contract is not a visa)? So, yes, there are lots of risks with any contract, and they increase when contracting across jurisdictions, but so can the rewards.
    Top prize for not reading reading the original post

    OP wants to subcontract from overseas. Not service an overseas client.
    See You Next Tuesday

  8. #8

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    Quote Originally Posted by Lance View Post
    Top prize for not reading reading the original post

    OP wants to subcontract from overseas. Not service an overseas client.
    Eh? Those comments apply regardless of which side the OP is on.

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