Listing US Companies On The Frankfurt Stock Exchange
Saturday, October 16, 2010 @ 12:10 AM
Listing US Companies On The Frankfurt Stock Exchange
Listing a company from the US onto the Frankfurt Stock Exchange can be done so easily and effortlessly through the creation of an EU holding company.
Many firms who contact FSE Listings ask to list directly US companies. The reality is that listing a US company directly takes longer and costs longer than the Holding Company method. The reasons for this are as follows:
- As a US incorporated firm, the company becomes public in the sense of the number of shareholders and will be required to report formally through to the SEC. However, as a Private company that is the asset of a public holding company from the EU, there is no requirement to report, and therefore, it is substantially lower in cost to run. US firms require to file Qs and Ks, as a foreign listed firm, the requirement is limited to the Annual filings on the FSE and only costs 5,000 euro to maintain per annum. No requirement to report as a EU Holding Company.
- In order to trade, companies need to register their shares electronically. Within the US, this requires registering with DTC, and becoming DTC eligible. This process as a US public company can take up to two months, as a private US company we have seen this process take years. EU Holding companies only take days to register electronically.
- By having a EU Holding company with a US corporation as the operating entity, the Tax regime remains American. Thus, the corporate taxes are still paid within the US. In the event of the Company being in Nevada or other jurisdictions in the US, this could be a huge tax savings versus operating out of the public vehicle in the UK where taxes are higher than some US States.
If you would like to go public on the Frankfurt Stock Exchange, I suggest contacting us to build a holding company. Contact info@fselistings.com today!