If you want to invest as an individual in a Dutch company, there are various options for doing so. In this blog we will discuss a few different options and what the consequences might be. We focus on the possibilities with profit-sharing certificates and shares.
Participate Through Profit-Sharing Certificates
A profit-sharing certificate entitles the person who owns this, the participant, to the profit of a company. This right only concerns the net profit of the company, not the capital. In addition, a profit-sharing certificate does not give ownership to the company or the shares of the company. This also means that a profit certificate does not give the right to vote and / or control.
Because there are many types of profit-sharing certificates and they do not have to be registered with the notary, many elements of a contract can be determined themselves. You therefore have control over how complex the contract becomes and how the profit certificate will be valued. There is also no decision required for the issue of a profit certificate.
Participate Via Shares
Participation via shares gives the participant a right to ownership of the company. Shares can be issued without voting rights and without profit rights. Please note that this cannot be done at the same time. Shares cannot contain no voting right and no profit right at the same time.
Issue or sale of shares does require the intervention of a notary. A disadvantage of participation via shares is that there is little possibility of deviating from standard shares, so that there is less flexibility in the valuation of shares.