What are Exemptions from Securities Registration?

The registration and public offering process is extremely burdensome for startup companies. Numerous statutory and rule-based exemptions to the securities registration process exist. The statutory exemptions fall under Sections 3 and 4 of the 33 Act. The rule-based exemptions are based upon statutory exemptions and are found primarily in Regulation A and Regulation D of the 33 Act. These statutory and rule-based exemptions either exempt this type of security from registration or exempt a particular type of transaction from registration. We address the various exemptions individually.