If you contract with a foreign company or selfemployed workers who operate under a business entity, you'll need to collect IRS Form W8BENE. Discover the essential steps and legal intricacies involved in hiring independent contractors from overseas for US companies.If you are hiring a foreign contractor, you will need to have them complete IRS Form W8BEN. Learn how to hire independent contractors overseas and ensure compliance with foreign employment laws to avoid misclassification risks. When a US company hires independent contractors who are US residents, it should have contractors complete Form W9. It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. Gig workers are independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers. 1.6 Contractors Hazardous Transporters Pollution Liability. Insurance. Opening a local subsidiary involves establishing a new legal entity in the foreign country, which hires the workers as local employees. In France, a bogus selfemployment status can bring an employer fines and up to three years of imprisonment.