Remote companies tend to hire people from all over the world. This sounds like a great idea to reduce the costs of having an office, as well as have a more diverse workforce and also reduce labor costs.
How is it done in practice?
There are two ways: Contractor agreement or Employee agreement.
Most companies require that the people they hire set themselves up as self-employed contractors and they then bill the company once a month.
As you might expect, some countries are not very enthusiastic about such a setup, as technically speaking, the company should setup a branch in every country they will be hiring in. This is very cumbersome in practice, and that’s why the self-employed route is the most straightforward way to do it.