When starting a new business in Europe, it is possible that your company would have to outsource some of its services to outside contractors. This can be due to either your company not providing certain services or you need an additional partners to provide the full scope of services as one comprehensive service. With outsourcing, you can focus on developing your core business activity. There are different types of cooperation through which you can outsource your services. We will be presenting the possible cooperation with subcontractors through different types of outsourcing options.
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The most common type of outsourcing is a service contract
After company registration, you possibly have to delegate some of your work to subcontractors. When doing outsourcing, entrepreneurs tend to resort to signing a service contract. It is a contract of provision of services that the subcontractors conclude with the company. The subcontractor has to conclude a certain work for the company and the company has to pay for this service. You have to be cautious when engaging in a service contract that the service the subcontractor provides does not have elements of employment relationship.
In cases where the service which the subcontractor provides seems like an employment relationship, the company has to hire the subcontractor as an employee of their company. When entering an employment relationship, you would have to pay the employee monthly salary. You can conclude a service contract for outsourcing with a natural person. Usually companies conclude service contracts so that subcontractors provide services of manual labor, repairs, certain intellectual work etc.
It is also possible to cooperate with sole proprietorships
Your Slovenian company can also do outsourcing its services to natural persons who opened sole proprietorships. Here, the sole proprietor can invoice your company for the service they provide. The same as the with the service contract, sole proprietorships can provide one-time service and cannot offer services which have elements of employment relationships.
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