Yes absolutely! It is often done using depositary receipts. We think this is a great idea, because the more you can make all your stakeholders owners of your company the higher form of economic stability you create. Do always make sure that the subcontractor sends you an invoice for the work they’ve done. The company can then pay this invoice with certificates, with a total value equal to the invoice. Make sure you calculate how many certificates this should be based on a fair market value of the certificates (the shares of the company). It is common practice to pay the net amount of the invoice in equity and the tax amount (VAT) in cash. This way the subcontractor is not draining on cash while helping you out with your company. We (Share Council) also take the income tax into account and pay this part in cash as well. That’s up to you. All in all, nothing is as beautiful as having these extremely valuable stakeholders close to the company and owning part of the business. Together we make a change.
Business Valuation is something you will encounter at some point in your company’s development, probably sooner than you think. For employees, the value of their participation in the company may be more relevant. It is easy to get caught up in all the jargon, but really it is rather simple and I’ll try to explain here how it works and how it can be done.Read more
What is a holding company? Here at Share Council it’s a common question that deserves more explanation. We often come across this item when setting up employee participation structures. A holding is not obligatory for employee participation, but it may come in handy. Briefly put, a holding entails that one BV holds shares in one […]Read more