A foreign client is a customer located, incorporated or contracting in a country different from the service provider's relevant home jurisdiction. The cross-border relationship can affect contracting, tax, data, invoicing and payment arrangements.
What should be established at onboarding?
- Legal name, entity type and registration
- Contracting entity and authorized signers
- Business address and tax identifiers
- Services, users and delivery locations
- Invoice currency and payment method
- Data access, storage and transfer locations
Why does the location matter?
Jurisdiction can affect withholding tax, indirect tax, foreign-exchange rules, sanctions, privacy, employment and dispute resolution. The relevant answer may depend on both the customer's entity and where the service is performed or used.
Foreign client vs. foreign payer
The client is the party buying or receiving the service. The payer is the party sending funds. They can differ within a group or agency arrangement, so third-party payments should be documented and screened.
What should the contract define?
Specify the services, entity, currency, taxes, payment terms, bank charges, data responsibilities, governing law, termination and ownership of work. Avoid relying on a brand name when multiple group entities exist.
What should be monitored?
Track changes in ownership, address, users, service scope, data flows, payment source and tax documentation. Revalidate material changes before accepting new instructions.
