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Why would Africans setup a company and incoorporate it in Germany and call it a Nigerian company
by amolo 7y ago
Why would Africans setup a company and incoorporate it in Germany and call it a Nigerian company
- chirau 7y agoTo attract capital of course. "Money can be raised for Africa, not in Africa." Most venture capital is still still skeptical of pumping money directly into sub-Saharan Africa and would rather do it via a company registered in a well regulated area. It should not come to you as a surprise that most of the promising, and/or funded African startups are incorporated either in Delaware or California. Initiatives like Stripe Atlas are there specifically for these two purposes: 1) To allow foreign entities to do business in the US 2) To allow foreign entities to raise capital in the US, regardless of their primary market of operation. The second is testimony to why African startups would rather incorporate elsewhere. Funding pools in Africa are small and foreign investment in hesitant, so any serious African startup will, statistically, have better chances incorporating elsewhere.