Contract Options for Individuals
Independent Contractors working in EU or working in foreign countries can choose the most appropriate contractual structure, depending on the nature of the job, responsibilities, time and who they are working for. Whilst each of them has their set of advantages and disadvantages, high skilled contractors have a lot to benefit by way of flexibility and freedom that Contractual assignments have in offer.
The three available options include (i) Employed option (ii) Self employed option (iii) Personal Service company option
Tomgandhi Consulting is a management company that provides its services to contractors, recruiters or corporations. Before availing our services, we provide a non-binding consultation to the parties detailing the options that provide a win-win situation for both.
Employed option - How it works
- Individual contractor/freelancer will be employed under the most appropriate Tomgandhi Consulting Management Company, thereby confirming to the labour leasing regulations.
- Work permits, business visas and sponsorship are arranged for, whilst our legal team manages contracts/ensure compliance.
- Contractor’s time is leased out to the respective client by Tomgandhi Consulting.
- Contractor forwards the approved timesheets and expenses to Tomgandhi Consulting;
- Confirms expenses and timesheets and invoices the client
- Calculates taxes, social security and pension contributions, focusing on maximum legal retention/tax management and regulatory compliances
- Processes paperwork for taxes, makes necessary deductions to ensure that the contractor is legally compliant
- Transfers the net retention amount to the Contractor’s nominated bank account
- sends the pay slips detailing the payroll as a part of Tomgandhi Consulting’s payroll service
Self Employed option
Where the Contractor is inclined to be self-employed, they can engage the services of Tomgandhi Consulting and enjoy the benefits of maximum retention of income and for legal and regulatory compliances. This is how it works:
- After the Contractor signs Consultancy services agreement with Tomgandhi Consulting, we take care of all the processes and formalities involved; including work, visa, work permits etc.
- Our legal team ensures that all the Contracts and agreements are legally compliant, and our tax experts give a low down on insurance and tax matters. Our core competence lies in the fact that we ensure compliances along with helping you get the required sponsorship of companies
- Contractor sends approved timesheets and expenses to Tomgandhi Consulting.
Whilst Tomgandhi Consulting,
- Processes all the paperwork pertaining to taxes, VAT; compiles all the entitlements and deductions and ensures that the Contractor’s earnings are optimum and tax management is at its fullest as permissible under law.
- Transfer the maximized retention amount to the nominated bank within 24 hours of receipt of funds, with full disclosure and breakdown of contributions
- Liaise with Financial consultant, who will make payments towards pension, social security to respective authorities.
Personal Service Company Option
Where the Contractor prefers to work, or continues to work via a PSC/LLC/Limited Company, or thinks that it is a financially viable option to work for a PSC/LLC/Limited company, the Contractor can engage the services of Tomgandhi Consulting for legal and tax compliances as well as benefit from maximized legal retention of income. This is how it works:
- The Contractor working on behalf of their LLC/PSC/Limited Company sign consultancy service agreement.
- Tomgandhi Consulting completes all the formalities for the setting up process, registration as well as arrange visas, work permits for the PSC/LLC, thereby ensuring that necessary legal and tax formalities are complied with.
- Our Legal team ensures that all the Contracts and agreements are legally compliant.
- Tomgandhi Consulting processes all the paperwork and calculations pertaining to local taxes such as GST, VAT, after taking into consideration all the entitlements, deductions and claims; thus, ensuring that it is legally compliant and tax management is to the fullest.
- Transfers funds to the bank account of the PSC/LLC/Limited Company, making full disclosure of the breakdown of the contribution on monthly basis
- The PSC/LLC/Limited Company will make payments for pension, social security as per the guidance provided by Tomgandhi Consulting.
Key Benefits of Tomgandhi Consulting Options:
- Because we offer the three most legally compliant contract structures, you can rest assured that we will advise on the best option for you, without prejudice
- Because we have a network of Management Companies in 60+ countries and offer rapid work permit & business visa services, Contractors know that they can start an assignment quickly, Recruiters know that we will help to reduce lead times to placement closure and Corporations know that projects will not be delayed due to non - compliance
- Because we have an in - house team of internationally - experienced Lawyers and tax specialists, Corporations know that statutory requirements are being fulfilled, Recruiters know that processes for their active candidates are taken care of and Contractors know that their time is financially optimized within international law, as well as the laws in the relevant countries / states
Where Can Tomgandhi Consulting Provide its Services?
Countries Around the World
Which Option Suits Me?
The option that a Contractor, Recruiter or Corporation should choose depends on:
- The duration of the contract
- The statutory requirements of the country in which the services will be delivered by the Contractor
- The daily or hourly rate
- The arrangement for expenses, such as flights or accommodation
- The Contractor's personal circumstances, such as marital status, number of dependents and so on
- Other factors, such as the Recruitment Agency's or Corporation's requirements, policies and preferences