Solution for a freelancer

[Arslan]

Hello,

I'm a Freelancer (from Pakistan) & my client (a company from Bulgaria) needs an invoice from a safe country.
I'm currently using upwork, they charge (13% of the total transaction which is way to high) + I loose money in converting to my currency as well.

I'm wondering what the best solution to invoice my client (from a European country or at least non offshore) to get paid outside Upwork?

- Any Alternative to upwork which charge less than 13%? (Freelancer, Fiver they charge the same)

- Opening a Deleware / UK llp Company?

Or any other suggestion?

 

[negon]

How does this work.. they invoice your customer and once he pay they pay you? how do they pay you, bank transfer other?

 

[Arslan]

I send them an invoice via upwork and they pay it by debit card or bank transfer but they are ok because the invoice is in the name of upwork (USA) not in my name.

 

[negon]

Thank's and why are they doing it this way? Just want to understand it! Why can't you just send them an invoice and ask them to pay to you directly?

 

[Arslan]

Because Bulgaria tax authority doesn't allow to deduct expenses from a freelancer from Pakistan (I don't provide a tax id no.) neither from an offshore company like Seychelles.

 

[negon]

okay, so a Cyprus company that is registered for VAT would be fine?

 

[Arslan]

VAT is not necessary, it's better to bill them perhaps from a country that doesn't require vat, that's why I thought to Delaware but I'm not an expert....

 

[laurie]

You won't get anything from Delaware. Not a bank will open you a Bank account, 'tho you would travel to US you would still struggle to have banking as you are Pakistani not US citizens.

Well, depending on your willingness to avoid tax in your country or to pay them, you have various solutions. The first things to considerate is :
- How much do you charge them
- Do you want to comply with fiscal laws of Pakistan which require you to declare your revenues or do you want to avoid taxes

 

[Arslan]

In Pakistan there is no tax on foreign remittance income.

 

[Arslan]

I charge them nearly $800 per month.

 

[laurie]

So you pay 100$ a month in fees ? Something like 1200$ a year.

Well, how much would cost you to incorporate anywhere in the world ? + the banking fees...

Sorry to tell you but 13% + financial fees are what you would have to expect. You may find a better deal through U.K. Agent but it will be hard, most of them would charge you as much

PS : You charge a Bulgarian Company in USD ?

 

[Arslan]

I pay around 110/120$ a month in fee and yes the Bulgarian company pay me in USD.

 

[crownblown]

So you pay 100$ a month in fees ? Something like 1200$ a year.

Well, how much would cost you to incorporate anywhere in the world ? + the banking fees...

Sorry to tell you but 13% + financial fees are what you would have to expect. You may find a better deal through U.K. Agent but it will be hard, most of them would charge you as much

PS : You charge a Bulgarian Company in USD ?

second that.. you can't get it cheaper regardless how you are doing it!

 

[diablo]

Wha's your outcome of your search OP ?