The Small Corporate Registration was designed specifically for small businesses. It allows small companies to raise equity or debt capital publicly without having to register with Securities and Exchange Commission. It is designed to streamline the state review process by using standardized forms and reviews. Each states separately reviews the companys filings and issues a permit allowing general solicitation to the public in that state.
Permits are generally issue within 30 days ( in Nevada) or it may take up six months (as is the case in California) depending on each states regulatory standard.
This form of registration is available to small securities issuers pursuant to Regulation D, Rule 504, of the Securities and exchange Act of 1933, as amended.
It allows small companies to be able to raise up to one million dollars in equity financing with certain limitations and guidelines. This program is known as Registration By Exemption because it is basically a hybrid between a public offering and a private placement.
This type of offering is often referred to as DPO, or Direct Public Offering because the stock can be sold to the public without the use...
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