Eighth Annual Global Business Complexity Index (GBCI)
The eighth annual Global Business Complexity Index (GBCI) reveals focus on good governance and responsible business; tougher penalties for breaching regulations; the long-term impact of Covid-19 on the global business landscape.
The comprehensive report by TMF Group, a leading professional services firm, analyses rules, regulations, tax rates, penalties, and compliance issues across 77 jurisdictions, accounting for 92% of the world’s total GDP and 95% of net global FDI flows.
292 indicators are tracked annually, offering data on key aspects of doing business, including incorporation timelines, payroll, and benefits, and staying compliant.
Brazil ranks as the most complex jurisdiction this year, leading a list of six Latin American countries in the top ten, with Mexico, Colombia, Argentina, Bolivia, and Costa Rica close behind. Brazil's ranking owes a lot to bureaucracy: businesses register with three different levels of authorities (federal, state, and city) when incorporating. Furthermore, tax rates differ from city to city and state to state.
Denmark and Hong Kong are the simplest jurisdictions, followed by the Cayman Islands, Ireland, and Curaçao. Denmark’s success is driven by a straightforward incorporation process, acceptance of English documentation, and digitalization.
The United States continues to be an attractive destination, ranking 7th least complex. Factors driving ease of doing business include the three-week turnaround to incorporate via a single body, the ability to pay taxes from a foreign bank account, and that company directors need not be US residents.
Last but not least, Sweden ranks 52nd, moving down 14 positions from last year’s Index, meaning it is now simpler to do business in this jurisdiction.
TMF Group CEO Mark Weil said: “Our 2021 report is written in the shadow of Covid-19 and the disruptions to travel, trade, and health that it has brought. Within that difficult backdrop, attracting and encouraging business investment remains a critical driver of the world economy and local prosperity, and we at TMF Group are pleased to play our part in encouraging simplification by regulators and governments.
In addition to analyzing 77 locations, the report identifies key themes shaping the global business landscape and regulatory environment.
To learn more about the ranking, global trends, and how to stay ahead of complexity download your copy here.