Contractor of Record in Pakistan
Engage independent contractors in Pakistan with a classification assessment behind every engagement, not just a signed template.
What it is
We contract with the supplier under Pakistani law, assess whether the engagement is genuinely independent, apply the correct withholding treatment, and pay them locally. You receive one invoice and a documented file showing why each engagement is properly classified as contracting rather than employment.
Suited to
Not the right fit when
What you pay for, and on what basis
| Line item | Basis | Notes |
|---|---|---|
| Contractor fee | Pass-through | Paid to the contractor as invoiced, in Pakistani rupees or as otherwise agreed. |
| Withholding tax | Deducted at statutory rate | Deducted, deposited and evidenced with a withholding certificate to the contractor. |
| COR service fee | Fixed monthly fee per contractor | Covers contracting, classification file, payment and record keeping. |
| Classification assessment | Fixed fee per engagement | Written assessment against the local misclassification indicators, retained on file. |
Questions buyers ask
Is an Employer of Record lawful in Pakistan?
Yes. The employee is genuinely employed by a Pakistani entity that meets all statutory employee obligations. What is not lawful is labelling an employment relationship as contracting to avoid those obligations, which is the arrangement EOR is designed to replace.
Who owns intellectual property created by the employee?
You do. The employment contract contains an express present assignment of intellectual property created in the course of employment, plus a moral rights waiver so far as permitted and a further assurance clause. The service agreement passes that assignment through to you.
Does using an EOR create a permanent establishment for us?
An EOR removes employment law exposure but does not decide the corporate tax question. Permanent establishment risk depends on what the staff actually do, particularly whether they habitually conclude contracts on your behalf, and on your home jurisdiction and the applicable treaty. We will describe the activity accurately so your tax advisers can assess it.
What happens if we later incorporate?
Employees transfer to your entity with continuity of service. Planning that transfer at the outset makes it a routine step rather than a renegotiation.
How is the service invoiced?
One monthly invoice in USD covering salary, statutory contributions at cost, and the fixed service fee, with a breakdown per employee. Payroll runs on the local cycle regardless of your payment timing, subject to funding terms agreed at the start.
Compliance we carry
What stays with you
This service versus incorporating your
own Pakistani entity
| Dimension | Contractor of Record | Own entity |
|---|---|---|
| Relationship | Independent supplier | Direct contract you sign yourself |
| Classification risk | Assessed and documented | Carried by you, usually undocumented |
| Withholding | Handled and evidenced | Your obligation to determine and apply |
| Payment | One consolidated invoice | Individual cross-border payments |
| IP position | Express assignment in every agreement | Depends on the template used |
| Setup time | About 5 business days | Immediate, with unassessed risk |
Questions buyers ask
Is an Employer of Record lawful in Pakistan?
Yes. The employee is genuinely employed by a Pakistani entity that meets all statutory employee obligations. What is not lawful is labelling an employment relationship as contracting to avoid those obligations, which is the arrangement EOR is designed to replace.
Who owns intellectual property created by the employee?
You do. The employment contract contains an express present assignment of intellectual property created in the course of employment, plus a moral rights waiver so far as permitted and a further assurance clause. The service agreement passes that assignment through to you.
Does using an EOR create a permanent establishment for us?
An EOR removes employment law exposure but does not decide the corporate tax question. Permanent establishment risk depends on what the staff actually do, particularly whether they habitually conclude contracts on your behalf, and on your home jurisdiction and the applicable treaty. We will describe the activity accurately so your tax advisers can assess it.
What happens if we later incorporate?
Employees transfer to your entity with continuity of service. Planning that transfer at the outset makes it a routine step rather than a renegotiation.
How is the service invoiced?
One monthly invoice in USD covering salary, statutory contributions at cost, and the fixed service fee, with a breakdown per employee. Payroll runs on the local cycle regardless of your payment timing, subject to funding terms agreed at the start.