An offshore umbrella company may be the solution to provide administrative services for anyone working on a contractual basis abroad, such as one of your employees that you want to send on a mission to a foreign country for even for yourself.
How does it work?
The process, known as factoring for B2B, involves 3 players: an independent person, an umbrella company and a client. The independent person performs a service for the client company. The umbrella company sends an invoice for this service to the client company, then it pays the independent person a wage corresponding to their fees less the cost of management.
The advantages of Offshore factoring
Offshore factoring can be interesting when a person is proposed a mission, but does not have a legal structure to permit him to carry it out. This person does not want to, or does not have sufficient time to set up his own company. The umbrella company offers a quick and simple solution to provide the legal structure that is required.
The main advantage of offshore factoring however, lies mainly in the fact that it allows you to invoice the service outside its country of origin, be it for tax purposes or image.
Offshore payroll factoring allows you to locate the income from your business in a jurisdiction where taxation is most advantageous to benefit from deductions.
Moreover, you significantly reduce your time spent carrying out administrative tasks which can be assumed by the umbrella company (factoring, payroll records, etc. ).
There are many alternatives for payroll factoring for a physical person. Choosing the right one depends on many factors: length of the mission, the country of origin and the country of destination …
Fidusuisse has many structures permitting it to carry out payroll factoring worldwide. Do not hesitate to contact us for an in-depth study of your situation to reveal the most suitable solution to your needs.