Can companies claim nationality of a country they are operating in but are not headed in? Quartz Africa dives into this important topic.
“While the company runs the largest e-commerce business across Africa with operations in 14 countries including Nigeria, Kenya, Morocco and Egypt, it is incorporated in Germany, has its headquarters in Dubai with its central tech team based in Portugal, and as its IPO filing shows, will be listed in New York.
Being a “German stock corporation” probably means it will pay the majority of its corporate taxes in Germany, but its subsidiaries will also pay local taxes in most countries. “There isn’t sufficient clarity on this matter,” says Aly-Khan Satchu, a Nairobi-based financial and investment analyst. “It’s basically called African because its business is in Africa but its ownership and a lot of the infrastructure is not on the continent.”
Click here to learn more: https://qz.com/africa/1572318/what-makes-jumia-an-african-startup/