Frequently asked questions

FAQ

Subcontractor

A subcontractor is a company that is commissioned by another company to carry out parts of its work. This company works independently. It has its own contract and its own rules. It often helps the main company to complete large projects. Subcontractors are like helpers who take on specialised tasks. They take care of their own employees and materials. They have to do their job well, otherwise they can get into trouble with the main company.
As a subcontractor, it is important to build up a strong network. This means establishing contacts with other companies that could potentially need subcontractors. Networking events, industry meetings and online platforms are helpful for this.
Active acquisition is another important step. Search specifically for potential orders by contacting companies that regularly require subcontractors. This can be done through requests for quotations, telephone calls or personal visits.
Working with main contractors or with recruitment agencies that provide subcontractors is also important. Build relationships with companies that regularly use subcontractors. A good working relationship can lead to you being regularly selected for projects.
Working as a foreign subcontractor requires special attention and consideration of certain aspects. Firstly, it is important to understand the legal requirements and regulations of the target country. These include visa requirements, work permits and tax obligations.

It is advisable to find out about the applicable laws and regulations at an early stage in order to avoid legal problems. This can be done by working with a legal advisor or by researching the relevant authorities.
In addition, financial aspects should be carefully planned. This includes currency conversion, tax deductions and other financial obligations. Accurate bookkeeping and working with a tax consultant can help you keep track of everything.
The subcontractor is generally liable for his own work. If he makes mistakes, he is responsible for them. The main contractor may also be liable if he does not select or supervise the subcontractor properly. Customers can often turn to the main contractor in the event of problems. Contracts usually regulate who is liable in which case. Everyone should take out good insurance to cover risks.
A subcontractor or sub-subcontractor must submit various documents to prove its qualification and legitimacy as a business partner. These usually include:

1. trade licence or entry in the commercial register: This document shows that the subcontractor operates as an independent company and is authorised to conduct business.

2. evidence of expertise and qualifications: Depending on the nature of the contract, evidence of specific expertise, training or certification may be required to demonstrate the subcontractor's suitability for the contract.

3. proof of insurance: The subcontractor may need to provide proof of insurance such as liability insurance, accident insurance or professional indemnity insurance to ensure that it is adequately covered in the event of damage or accidents.

4. references and proof of experience: It may be necessary to provide references from previous clients or evidence of previous projects to demonstrate the subcontractor's experience and capabilities.

5. tax documents: the subcontractor may be required to provide tax documents such as a tax number, VAT number or other tax documents to prove its tax compliance.

6. contract documents: Depending on the requirements of the main contractor, it may be necessary to submit various contract documents, including a subcontract specifying the terms of co-operation.
You are a subcontractor if you receive orders from a main contractor. The main contractor has an order from the customer. The subcontractor helps to fulfil parts of it. Subcontractors work independently. They are given their own specific tasks. Sometimes the subcontractor also has other subcontractors under him.
In practice, the terms subcontractor and sub-subcontractor are often used synonymously. Theoretically, however, the following distinction can be made:
Subcontractor: Is an independent contractor who is commissioned by a main contractor to take on part of a larger project or order.
Subcontractor: More specifically, one could say that a subcontractor is also a subcontractor, but one that is commissioned by a subcontractor - in other words, one that is "under" the subcontractor, so to speak.
In both cases, they carry out work that is part of a project that a main contractor has received from the client (customer).
A subcontractor contract is a contract between the main contractor and the subcontractor. The contract specifies what work the subcontractor is to do. It also specifies payment and deadlines. The contract also regulates what happens in the event of problems. The contract protects both sides. The subcontractor knows what he is supposed to do and the main contractor knows what he can expect.
The income of subcontractors varies greatly. It depends on the industry, the type of work and the size of the contracts. Subcontractors issue invoices for their projects or services. Their earnings are what is left over after they have paid all costs. Some subcontractors earn a lot, some less. Their income can be uncertain and often fluctuates.
Any company or self-employed person can employ subcontractors. The prerequisite is that you have a main contract yourself. You must be legally able to conclude contracts. It is important to observe the rules and laws for subcontractors. You should make sure that subcontractors are legal and qualified.
Yes, a subcontractor is self-employed. They have their own business or company. Subcontractors work on their own account. They fulfil orders for other companies. Subcontractors bear their own business risk. They must take care of their own insurance and taxes.
No, temporary workers are not subcontractors. Temporary workers are employees of a temporary employment agency or a personnel service provider. This company hires out the temporary workers to other companies. The companies pay the temporary employment agency for the working hours of the temporary workers.
Subcontractors are self-employed or have their own company. They work on their own account and bear their own business risk. Temporary workers, on the other hand, are employed and do not bear any entrepreneurial risk.
Several steps are required to become a subcontractor:

1. business registration: In most countries, you must register a business in order to work as a subcontractor. This can be done with the local authorities or chambers of commerce. Make sure you have all the necessary documents and fees ready.

2. expertise and qualifications: Depending on the type of service you want to provide, you may need specific expertise, training or certifications. Make sure you have the necessary qualifications to provide high quality work.

3. insurance: It is important to have the right insurance policies in place to protect yourself and your business. This may include liability insurance, accident insurance or professional indemnity insurance. Find out about the insurance requirements in your industry and country.

4. tax matters: As a subcontractor, you need to understand and fulfil your tax obligations. This includes registering for taxes such as VAT and complying with your country's tax regulations.

5. business planning: Create a business plan that includes your business goals, target audience, marketing strategies, financial planning and other important aspects of your business. Solid business planning is critical to success as a subcontractor.
A freelancer is similar to a subcontractor in some respects, but there are differences:
Freelancer often works for various clients on the basis of contracts for work or services. He is self-employed and responsible for his own social security and taxes, usually has no fixed working hours and no fixed place of work with the client.
A freelancer carries out specific tasks or projects and is usually paid for the results.

Subcontractor often has his own business or company. He takes on partial orders from a main company that are part of a larger project.

Subcontractor secondment

Posting of subcontractors refers to the practice whereby a company (main contractor) delegates part of its contractual obligations to a third party (subcontractor) who sends its own employees to the country of the main contractor or to a third country to perform work there.
The legal conditions vary depending on the country. In general, both the posting regulations of the country of origin and the labour and social legislation of the destination country must be observed. In addition, there are any bilateral agreements and EU directives in the case of EU countries.
In many countries, especially within the European Union, it is necessary that posted workers receive basic working conditions that correspond to those of local employees (principle of equal treatment).
The A1 certificate is a document that proves that an employee is covered by social security in one EU country and therefore does not have to pay contributions in another EU country to which he or she is posted.
Usually, posted employees are subject to the social security laws of their home country. Within the EU, Regulation (EC) No 883/2004 governs the coordination of social security systems for persons moving within the EU.
It must be clarified how and where the subcontractor's employees are taxed. This may depend on existing double taxation agreements between the countries concerned.
A secondment agreement is a contract between the main contractor and subcontractor that sets out the terms of the secondment. It should contain details such as the services to be provided, working conditions, remuneration and regulations on social security and taxation.
Companies often have to inform certain authorities in advance, e.g. the immigration authorities, the tax office or social security organisations. Within the EU, there is a system of prior notification using the A1 form and the IMI notification portal.
Posted employees should carry the A1 certificate, a valid employment contract, possibly a work permit and personal identification documents.
The maximum duration of a posting can be regulated by national laws or bilateral agreements. Within the EU, a maximum posting period of 24 months often applies, with the possibility of extension under certain circumstances.
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