2013-12-15 22:00:42 - If you're searching for a Frankfurt listed shell company, you should read our market update. Not only will you save time and money, but you will find out about cost effective alternatives.
If you're looking for a Frankfurt Shell Company for sale, let us save you time and money by updating you on recent developments on the Frankfurt stock exchange.
On all exchanges, there are changes from time to time. Two years ago, Frankfurt stock exchange had four market segments. The First Quotation Board was the entry level market. It gave easy access to companies that would not typically meet the requirements of a stock exchange listing on a similarly reputable exchange. The First Quotation Board was intended for smaller companies to raise finance at an early stage in a very creditable market place. The listing requirements were very limited, which inevitably was open to abuse.
The regulatory environment on the First Quotation Board
was in fact so relaxed that it could be used for money-laundering and a number of other uses, for which it was not intended. In December 2011, the Frankfurt stock exchange took pre-emptive measures to stamp out this illegal activity by suspending all trading on the segment and stopped any further admissions. For a while, it was unclear what the future held for the First Quotation Board, but after a period of reflection, a decision was finally reached in April 2012, for the First Quotation Board to be closed entirely by the end of 2012. This gave companies listed on the board in period of grace to upgrade their listing to the Entry Standard segment or face the prospect of being delisted automatically at the close of the year.
The majority of First Quotation Board companies were unable to manage the upgrade to Entry Standard, so owners of many listed companies took the view that a damage limitation exercise was called for and sought to offload their listed shell companies that would otherwise become entirely worthless. Through much of 2012 therefore, Frankfurt stock exchange shell companies were plentiful. They could be bought quickly and cheaply, leaving the new owner with the dilemma of what to do next, in light of the looming closure of the board. At that time, a shell company was in fact the only way to gain admission to the FQB.
Since December 2012, the listing activities on the Frankfurt stock exchange have been dramatically reduced, with very few new listings occurring in the past 12 months. It would be safe to assume then, that further Frankfurt stock exchange shell companies are unlikely to be coming onto the market any time soon. In many ways, this is a good thing. Not all companies can or should be publicly traded.
The listing requirements of the Entry Standard segment of the Frankfurt stock exchange are relatively modest, and should be a minimum expectation for any company wanting to sell shares to the public. According to the written guidance for companies seeking admission to the Entry Standard, the exchange expects to see a minimum revenue level of €1 million for the previous tax year. In practice though, there are far more likely to accept existing application if the revenues are considerably higher. There is a need to show an operational history of three years or more, covered by an audit from a reputable accounting firm, prepared to IFRS standards. Please contact us for a current list of requirements for the Frankfurt stock exchange.
Although for some readers this news will be disappointing, I very much hope that it saves you time and money chasing a product that no longer exists. If your company is looking for a streamlined listing process and fast turnaround, we have other options that can be discussed if your intention is to list in Europe.