A company has many reasons why they should list their company on the over-the-counter OTC market. If a company intends on raisingcapital or looking to provide liquidity to your current shareholders, then listing a company on the over-the-counter market is the way to go.
Companies looking to go public typically start out being listed with The Pink sheets. The Pink OTC market is the largest broker dealer quotation system for market makers who trade unlisted securities.
The next step is to hire an attorney that specializes in taking companies public in the Pink OTC market. He will guide you through the U.S. Securities and Exchange Commission's process of being listed on the OTC market.
Locate a market maker to sponsor your listing on the Pink OTC market. Market makers are SEC-registered broker-dealers who specialize in providing quotes and share liquidity to companies they sponsor and make a market in.
Provide financial statements, as well as information about your directors and management, to your market maker. Financial statements do not have to be audited, however they do need to be prepared in accordance with GAAP. Market makers will submit your company's information along with a form called 211 with the Financial Industry Regulatory Authority, called FINRA. This form allows your market maker to quote your stock on the Pink OTC market.
Set your stock price at a minimum of $.10 per share. Make sure that you have a minimum of 50 beneficial shareholders each owning 100 shares. Your public market value of your company's securities should be no less than $5 million. Your attorney can advise you on how many shares need to be publicly traded.
Hire a transfer agent company. Your transfer agent will work together with your market maker when there are shares exchanged between investors. The transfer agent's job is to keep a record of all your current stock holders, cancel stock certificates sold by investors and issue new stock certificates to new investors.