How Could An Umbrella Company Help You As An International Contractor?

by Liz Seyi Digital marketing manager

One of the very first decisions that any contractor is required to make in their career is whether to form a limited company or join an umbrella company. Particularly if you are an inexperienced contractor, your agency may have pushed you towards the umbrella option without you ever really knowing what an umbrella company is.

In short, umbrella companies enable contractors to combine the flexibility of contracting with the rights and benefits that permanent employees enjoy. That’s because if you join such a company, you will be given an employment contract that renders you an employee of the business. 

So, what if you start contracting abroad?

Similarly, when you are looking to contract overseas, you may spend a lot of time contemplating whether it would be best to set up your own local limited company while you are working in a particular country, or instead go down the umbrella company route.

A local limited company may make a certain amount of sense if you intend to live in the given country for a long time, although you should also check the regulations in that jurisdiction. There are certain costs and paperwork associated with setting up a local limited company, and you’ll require a local accountant.

An international umbrella company, though, could enable a somewhat swifter and simpler transition to working abroad. The term ‘umbrella company’ is particularly common in the UK, with such companies typically being referred to by different terms elsewhere – for example, payroll companies in the United States and salary packaging companies in Australia.

The right umbrella company could take much of the stress out of your overseas work

As exciting as contracting abroad can be – particularly the chance to experience a new and unfamiliar culture – it isn’t as simple a process as just accepting an assignment, arranging a flight and getting your bags packed.

With different countries often having very different tax laws, you may become confused by such matters as where and to whom you must pay tax, how you will be paid and whether you may be subject to ‘double taxation’ – the phenomenon of having tax levied on your income in both your home country and the one in which you are contracting.

That’s why, for assistance in relation to such things as the paperwork that you will require if you are to work in a given jurisdiction, local tax regulations and even the arrangement of insurance, you may find an umbrella company’s services invaluable.

While there are naturally fees involved when working with an umbrella company, tax savings may also be possible that make such a partnership worthwhile in and of itself.

Are you seeking the complete Umbrella Company In Spain, France, Germany, Turkey, Saudi Arabia or elsewhere in the world as an international contractor? If so, Link Global Management would be delighted to hear from you and to discuss how we can serve your specific needs.

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Created on Sep 2nd 2019 01:53. Viewed 200 times.

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