Contracts, invoicing and getting paid
This is where first placements most often go wrong administratively, and it is the part guides written for a Western audience skip entirely. Sort it before you start, not after your first invoice is late. None of this is legal or tax advice — it is the map of what to go and ask a qualified professional about.
What to do
Know which of the three shapes you are in
Direct contractor, invoicing the company yourself. Through an employer of record, where a third party employs you locally on the company's behalf. Or through an agency or staffing firm. Each has different paperwork, protection and cost.
Read the contract for the four things that matter
Payment terms and currency, notice period on both sides, intellectual property ownership, and who carries tax responsibility. Everything else is usually boilerplate; these four are not.
Set up receiving money before you need to
Understand your bank's requirements for inbound foreign payments and what documentation they will ask for. Pakistan offers specific accounts and incentives for exporters of IT services — find out from your bank and a tax adviser which apply to you, in advance.
Register and declare properly
Foreign income is not invisible income. Talk to an accountant once, early. It costs a fraction of what an unresolved compliance problem costs later, and it makes future visa applications far easier because you can evidence your income.
Invoice on a fixed day, every month
A numbered invoice, the same date each month, with your details and the agreed currency. Chase politely after five days. Being easy to pay is part of being easy to keep.
What goes wrong
- Starting work with no written agreement because the conversation felt friendly.
- Accepting payment methods with punitive fees or that your bank will query, without checking first.
- Assuming the company handles your tax. In a direct contract it almost never does.
- Signing an IP clause that claims everything you build, including your own projects on your own time.
Where to go next
Outside resources worth your time. We are not paid to list any of these, and each one is useful without paying for it.
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