Hiring someone across borders feels exciting, and at the same time, a bit worrying, which is understandable when considering the documents one needs. 

The good news is that you don’t need a filing cabinet full of forms. You need a short, clear set of documents that prove these three things: 

  • What the work is
  • Who owns the output, and 
  • How the money flows. 

Get those right and you avoid most legal and tax headaches. Here's a diagram showing your contractor hiring document pack

Contractor hiring document pack

Start with the basics: define the relationship

Paperwork works best when the role is clear. Write a simple Scope of Work (SOW) that says what the contractor will deliver, the timeline, and how you’ll review the work. Keep it one to two pages. Plain language is fine. This SOW becomes the anchor for everything else.

The core contract you always need

You need a Contractor Agreement. This is your main document. It should cover:

  • Independent contractor status: they run their own business, set their own hours, use their own tools, and are not eligible for employee benefits.
  • Intellectual property (IP) assignment: the work product transfers to you on payment. In many countries, this must be a written assignment, don’t rely on “work made for hire” alone.
  • Confidentiality (NDA): protect customer data, code, pricing, and any non-public info.
  • Deliverables and acceptance: link to the SOW and say how you’ll approve work.
  • Payment terms: rate, currency, invoicing schedule, late fees, and what counts as an expense.
  • Termination: how either side can end the contract and what happens to unfinished work.
  • No authority to bind: they can’t sign deals on your behalf (helps with permanent establishment risk).
  • Governing law and dispute resolution: choose a law and a venue, or pick arbitration.

Keep this agreement template handy. Reuse it for future hires by swapping the SOW.

Proof the person is a contractor (not your employee)

Misclassification is what gets companies fined. Create a short Contractor Status Questionnaire and keep it on file. Ask about multiple clients, control over schedule, who supplies equipment, ability to subcontract, and how they price projects. Store their business registration or tax ID if they have one. These notes show you did your homework.

Identity, tax, and payment details

You need enough information to pay the contractor correctly and to pass basic compliance checks.

  • Legal name and address that match their bank details.
  • Government ID or company certificate (light KYC). Keep it secure.
  • Banking or wallet info: IBAN/SWIFT, Wise, Payoneer, or platform payout details.
  • Sanctions/export check: confirm they’re not on restricted lists and the work isn’t subject to export controls. For most roles this is quick.

If you are a U.S. company

Get the right IRS form based on who you are paying.

  • Paying a U.S. person: collect Form W-9 and issue Form 1099-NEC if you meet the thresholds.
  • Paying a non-U.S. person/entity: collect Form W-8BEN (individual) or W-8BEN-E (company). Keep it on file. In many cases, if all services are performed outside the U.S., you do not issue a 1099 and no U.S. withholding applies. Whether you must file Form 1042-S depends on sourcing and treaty rules—when in doubt, ask your tax advisor.

Keep invoices from the contractor. Pay against invoices only.

If you are in the EU or UK

Ask for a VAT/GST number if they have one and expect VAT-compliant invoices. If you act as a data controller and the contractor processes personal data for you, add a Data Processing Agreement (DPA) and, if data leaves the EEA/UK, the Standard Contractual Clauses or UK IDTA. This sounds heavy, but most DPAs are short and template-friendly.

Data protection for everyone

If the contractor you are working with sees customer data or code, you can add the following:

  • DPA: who is the controller, who is the processor, and security standards.
  • Access rules: company accounts only, no sharing logins, use MFA.
  • Return/Deletion: delete or return data at the end of the project.

This isn’t just legal. It prevents messy handovers later.

Insurance and risk notes

For higher-risk work (security, health, finance), ask for proof of professional liability insurance. For typical design, dev, or marketing work, a simple clause that limits liability to the amount paid under the contract is usually enough.

How the money actually moves

Choose one channel and state it in the contract.

  • Arbonum if you want built-in contracts, invoicing, and local compliance.
  • Wise or Payoneer for cross-border payouts.
  • PayPal for simplicity, but fees can be higher.

Match the invoice name to the payee name. Pay in the currency you agreed. Store payment confirmations with the invoice.

Your simple document pack (what to keep on file)

  • Contractor Agreement + SOW
  • NDA (standalone or inside the agreement)
  • Contractor Status Questionnaire and any business/tax registration
  • Identity + bank/wallet details (stored securely)
  • Tax form (W-9 or W-8BEN/W-8BEN-E, VAT details as relevant)
  • DPA and standard clauses if personal data crosses borders
  • Invoices and payment receipts
  • Insurance certificate if required

That’s your audit trail. Keep it for at least the period your local law requires (often 5–7 years).

A clean workflow you can reuse

Send the offer → collect identity, tax form, and bank details → sign the Contractor Agreement and SOW → grant tool access and share your onboarding sheet → receive first invoice tied to a milestone → pay through your chosen platform → file everything in a contractor folder.

Contractor Onboarding Workflow (for remote contractors)

Common mistakes to avoid

  • Managing hours like an employee. Focus on deliverables, not presence.
  • Forgetting IP assignments. If it isn’t in writing, you might not own the work.
  • Paying without an invoice. You lose your paper trail.
  • Mixing personal and company accounts. Keep access and data inside company systems.
  • Skipping the W-8/W-9 step. You’ll chase it at year-end when it’s painful.

Final takeaway

Paperwork shouldn’t slow you down. A solid agreement, a clear SOW, the right tax form, and clean invoices will carry you a long way. Add a DPA when there’s customer data, and pick one payment rail you trust. Do this once, save your templates, and every future remote hire gets easier and safer.

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