When to use which entity?

This overview should help you to decide which entity you should use when entering a new contract.

We differentiate between to two types of contracts:

• Vendor contracts: We are the customer and purchase the goods and services

• Customer contracts: We are the vendor and invoice for our goods and services

Vendor

We need to take the following factors into consideration:

• Department

  • R&D: Since the majority of the operations is happening in Europe, Engineering, Product and Research should use the GmbH as contracting partner and EUR as currency.

  • Sales & Marketing: For Sales and Marketing it depends on whether the product or service can be clearly assigned to one region (eg. for an event in Germany we should use the GmbH) or not (eg. Hubspot license).

  • Operations: Depending on the type of expense and whether it is attributable to a specific region or not. (eg. Payroll in the respective region, Recruiting in GmbH)

• Currency: By default should we pay only in USD or EUR. In rare cases we can also accept GBP. All other currencies should be avoided.

  • R&D: By default should we pay with the GmbH in EUR, but if the vendor doesn´t accept EUR we can also pay in USD or GBP.

  • Sales & Marketing: In case the expense can not be assigned to one region, we should ensure that depending on the currency we pick the right entity. Eg. USD - INC or EUR/GBP - GmbH

Customer

Depending on the location of the contracting customer entity.

North America, South America

Every customer in North America and South America is to be invoiced by the Inc. in USD.

Rest of the world

Customers in the UK, Europe and the rest of the World should be invoiced by the GmbH. Ideally we invoice in EUR, alternatively we can also invoice in USD and GBP. All other currencies should be avoided.

Who should sign the contract?