How to rent a company to run your freelancing business

Posted on April 02, 2018 by Filip Defar

Q: Can you tell us a bit about yourself and how Winglio came to be?
 
My name is Slavko Ples and I’m the founder of Winglio. After a couple of years of running a software development agency, I started Winglio in 2015. AirBnb, Uber, and other sharing economy startups inspired me to do something what nobody did before – to develop a first company-sharing service. One day I asked myself, if people can share almost everything in order to reduce costs, why wouldn’t they share a company in order to reduce business costs? That simple idea was soon converted into a very useful service, so today we have users in more than 30 countries.
 
Q: Can you briefly describe how renting a company works?
 
Renting a company is simply sharing the existing company with other users who use the same service. If you need a legal entity to issue an invoice and receive a payment from your client, you can do it by using Winglio Company. Just create a Winglio account and you are ready to go. When you issue an invoice to your client and Winglio company receives the payment, you can withdraw funds to your personal bank account or debit card as secondary income or dividend.
 
Q: In terms of working remotely from Europe, what are the advantages of using Winglio?
 
The advantages of using Winglio are numerous. The first one is the significant reduction of fixed business costs. If you run your own company, accounting fees, virtual office fees, and other fixed costs can reach a couple of thousand euros per year. With Winglio, those costs are reduced to zero. The second reason is productivity. Winglio takes care of accounting and paperwork, which enables you to focus completely on your work and clients in order to increase your productivity and income. The third advantage is a potential tax savings. In many countries, the tax rate on dividends is lower than the regular income tax rate, therefore Winglio users can benefit by taking money from Winglio company as dividend. Some freelancers also feature flexibility as a very important part of Winglio service. Many of them travel a lot, move from one country to another, and they need a reliable and flexible solution that they can use online no matter in which country they spend a few months or a couple of years.
 
Q: Are there any cases you can think of when starting your own company or sole proprietorship would be a better option?
 
Winglio service itself has some limitations and it is not the best solution for everyone. If you are an IT freelancer, consultant, agent, or if you provide any type of remote service to your clients, then Winglio could be the best solution for you. However, in many situations, starting your own company or sole proprietorship would be a better or the only possible option.
For example, if your business is a webshop, if you trade physical goods, or if you need credit card payments etc., you will need you own business entity.
 
Q: What are the total costs of working through Winglio?
 
You can create a Winglio account and start sending invoices without any setup fee or a fixed monthly cost. Winglio charges only 4.50 EUR as a fixed transaction fee, plus 6.60% of the received payment as a partnership fee. If you withdraw funds from Winglio, you will be charged 4.50 EUR per withdrawal. Those fees cover all running costs of the rented company such as accounting, bank accounts, paperwork, corporate taxes and other business costs.
 
Q: For example, if you earn 1000 EUR, how much would you get to your bank account?
 
If Winglio receives 1000 EUR, 66 EUR would be charged as a partnership fee + 4.50 EUR as a transaction fee. Additional 4.50 EUR would be charged as a withdrawal transaction fee, therefore, the amount you would get to your bank account is 925 EUR. The amount you receive to your bank account is taxable in your country of residence as your secondary income or dividend.
 
Q: Are there any setup fees?
 
You can pay the shareholder setup fee in amount of 179 EUR if you wish to withdraw money from the Winglio company as dividend.
 
Q: Any final words or tips for people just starting with freelancing and remote work?
 
Choosing the best way of doing business is one of the first and most important decisions for every freelancer. If you want to avoid initial and fixed business costs and a hassle of running your own company, then Winglio rented company might be a perfect business solution for you.

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