[asterisk-biz] OT: Paying people in faraway (Western) places.

[Alex Balashov]

The other thing is, for better or worse, I don't think there's anywhere 
where it's easier to register & incorporate a company than in the US. 
Everywhere else, including the UK, there seem to be far more onerous 
regulatory and on-hand capital requirement burdens.

So, the "open a branch in the UK" idea is sort of out unless I was 
looking at hiring an entire staff there, which I'm not.

How do people get around this bullshit?  I mean, I know folks out there 
who are running highly professional, virtual software development crews 
of individuals scattered all over the world and connected by online 
collaboration tools, and seem to be able to make it work pretty well.  I 
think we'll start seeing more of that kind of thing.  I don't see these 
guys bogged down in massive accounting overhead, having twenty companies 
registered all over the globe, nor worrying much about juggling twenty 
tax regimes.

Alex Balashov wrote:

> Nitzan Kon wrote:
>> --- On Wed, 1/7/09, Alex Balashov <abalashov at evaristesys.com> wrote:
>>
>>> Or perhaps it is that I can't actually "employ" anyone in Britain 
>>> without being an incorporated and legally present entity there, and 
>>> must necessarily pay them as a contractor across international 
>>> boundaries.
>>
>> I'm pretty sure you cannot directly employ someone who lives in 
>> Britain in an American company. For starters it's illegal for
>> you to employ anyone without a valid working license in the US,
>> not to mention you can't withhold taxes for Britain.
> 
> I figured there were provisions for this kind of thing.  Otherwise, 
> everyone just does exactly what you are suggesting below, and the 
> definition of 'employment' becomes sort of meaningless.
> 
> I'm guessing most people paying folks overseas sort of do it under the 
> table, since they can't be 'employed' anyway, based on what you suggest. 
>  Can't say I blame them;  if the dull-witted, facile bureaucrat 
> prize-bulls in government can't figure out how to come up with a 
> taxation system and labour law compatible with the basic requirements of 
> a 21st century / globalised economy, I can't imagine what other than a 
> middle finger would be much of the world's "de facto", reality-based 
> response.
> 
>> The solution is either for you to open a UK branch and pay
>> them locally in Britain which is possible but might expose
>> you to different regulation and is a PITA to say the least,
>> or the better solution is to have THEM open a UK company, pay that 
>> company for their services, and let them worry about paying themselves 
>> salary.
> 
> Yes, that would be easier, although that puts them in a position they 
> don't want to be in.  Someone just wants to work and get a pay check; 
> now they have to run a business, or at the very least a legal and 
> accounting shell of one.  That seems like an onerous requirement.
> 
>> From a legal standpoint, you are just paying a vendor which
>> is of course deductible, and it's 100% legal in both countries.
> 
> Well, I imagine that using them in the manner proposed probably doesn't 
> formally abide by the contractor vs. employee distinction for tax 
> purposes, but, I don't care.  If 'contract-to-hire' body shops can get 
> away with it...
> 
> 


-- 
Alex Balashov
Evariste Systems
Web    : http://www.evaristesys.com/
Tel    : (+1) (678) 954-0670
Direct : (+1) (678) 954-0671
Mobile : (+1) (678) 237-1775