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The Entrepreneur’s Do-It-Yourself Business Plan System
Developing Financial Projections

Numbers Don't Lie: What Financial Statements Really Say About a Company

Business Plan Development Guide

Maximizing the Price When Selling a Company

Avoiding Business Plan Mistakes


How Can My Company Trade on the US Markets?

The United States Securities and Exchange Commission (SEC) imposes a significantly reduced regulatory burden on foreign issuers wishing to trade on US markets, compared to US companies. Meaning, filing as a foreign issuer is easier, less time-consuming, and a lot less expensive.




What are the Advantages of Trading as a Foreign Issuer?

The United States Securities and Exchange Commission (SEC) imposes a significantly reduced regulatory burden on foreign issuers wishing to trade on US markets, compared to US companies. Meaning, filing as a foreign issuer is easier, less time-consuming, and a lot less expensive.

For example:
  • No 10-Q’s are required to be filed. Just a Form 20-F as an annual report, not due until 6 months after fiscal year end
  • No 8-K’s are required. However, Form 6-K must be filed for information distributed to shareholders
  • No proxy solicitation Schedule 14A or 14C required.
  • No Forms 3, 4, 5 or 13 D/G required. Insiders not subject to Section 16b short swing profit rules
  • You must provide audited financial statements for the last 3 years, but a balance sheet for the earliest of the 3 years is not required. Audit must be dated within 12 months of filing
  • Interim financials: If the document is dated more than nine months after the end of the last audited financial year, it should contain consolidated interim financial statements, which may be unaudited (in which case that fact should be stated), covering at least the first six months of the financial year


Am I a Foreign Issuer as the SEC defines it?

Basically, the SEC has defined “foreign issuer” to prevent a US company from disguising itself as a foreign one. This protects the regulatory exemptions listed above, which assume that the foreign entity is subject to the laws, regulations, and filing requirements of its own country.

Here are the SEC requirements:

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 CAPITAL MARKETS
   Pink Sheets
   OTCBB

 BASIC BUSINESS SAVVY
   Advanced Financial Topics

 GOING PUBLIC
   Steps in the Process
   Requirements of Public Companies
   Tools & Templates
   Specialists

 REPORTING & COMPLIANCE
   Staying in SEC Compliance
   New Sarbanes-Oxley Regulations
   Structuring Your Company
   Tools & Templates

 GETTING FUNDING
   Preparing Your Business
   Finding Investors
   Pitching Investors

 FOREIGN COMPANIES
   Taking a Foreign Company Public

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