Let’s start with an explanation on what are reporting and non-reporting companies overall.
After that, we’ll discuss their main differences.
Last but not least we will explain what the best option FOR YOU is!
Enjoy!
Reporting Company
Sometimes referred to as a public company and a reporting issuer. A reporting corporation is one that is covered by Section 13 or 15(d) of the Exchange Act.
The following situations result in a corporation being covered by the Exchange Act:
- Listing on a securities market
A corporation must register that class of securities with the SEC in accordance with Section 12(b) of the Exchange Act before the securities can start trading on a US exchange. When a business goes public, it typically also lists its securities for trading on a “national securities exchange” like the NYSE or Nasdaq.
- Size thresholds
Companies with total assets greater than $10 million and a class of equity securities held by 2,000 or more persons, or 500 or more persons who are not accredited investors, must register those securities with the SEC under Section 12(g) of the Exchange Act.
- No securities exchange listing and public offering
Businesses that have sold equity or debt securities to the public but are not listed on a US exchange are now governed under Section 15(d) of the Exchange Act.
Non-Reporting Company
Also known as non-reporting issuer.
Non-reporting Company means a stock company or other legal entity that is not required to file financial reports with a relevant securities regulatory commission.
Regardless of whether it is filing voluntarily, a corporation that is exempt from Section 13 or Section 15(d) of the Exchange Act.
Non-reporting companies include:
- US public companies listed on OTCMarkets that are not listed under the Section 13 or Section 15(d) and are not obligated to file their filings or financials with SEC. Also known as Voluntary Filer. This type of formations can always be switched to reporting issuer by filing a registration statement.
- US private companies
Private corporations are not required to file with the Securities and Exchange Commission (SEC), thus they may not always have access to the kind of information and depth of information that can be found in those records.
- Non-US private companies
Resources for anyone looking for details on businesses outside of the United States are provided in this area. Not all resources are included, and not all resources are included for all nations. Each country will have a different level of information accessibility and information availability.
- Companies based outside the US that are listed on the stock exchange in their native nations but are not Exchange Act reporting businesses.
Main Differences:
I believe you already understand the distinction between reporting and non-reporting companies, but here is a short explanation.
A non-reporting issuer is an entity – either private or public – with few compliance and disclosure duties, whereas a reporting issuer is often a public entity in Canada with continuing compliance and disclosure obligations.
Our recommendation:
Of course, we are recommending Non-Reporting. Why?
- A cheaper solution to get listed on public markets;
- Provides you with a similar opportunity to raising funds as a reporting Co;
- Easy and not costly to maintain;
- And MMG has a key for Non-reporting OTC issuers
MMG key for Non-reporting OTC issuers:
All you are required is to be a Non-Reporting company and you are in a need of additional funds for business growth.
If you recognize your Co and yourself in this, we have a solution FOR YOU!
- Mina Mar Group is acting as a financier, financing all necessary pieces to qualify you for the Reg A Up to $25 Million Raising.
- We can also sign an Operating Agreement and file it with the TA as an alternative 95 percent of our clients are former TAs.
This is just a piece of that what we can offer you.
The two blogs we’ve written before contain additional details on how you can raise funds out of public markets as both Reporting and a Non-Reporting Issuer.
