TMF Group: Brazil, Bolivia and Peru, the most complex Latin American economies to conduct business

The Global Corporate Complexity Index of TMF Group, which compares the main administrative and compliance requirements in 76 jurisdictions worldwide, positioned China, Germany, and Brazil among the ten most demanding countries in the world where multinational companies conduct business operations.

Brazil, Bolivia, and Peru were the most complex Latin American countries to do business, according to an independent report prepared by the TMF Group, which placed the South American giant in the 3rd position worldwide, while its regional escorts were located at 5 ° and 10th place, respectively.
Brazil, Bolivia, and Peru were the most complex Latin American countries to do business, according to an independent report prepared by the TMF Group, which placed the South American giant in the 3rd position worldwide, while its regional escorts were located at 5 ° and 10th place, respectively.

The Global Index of Corporate Complexity, which compares the main administrative and compliance requirements in 76 jurisdictions, positioned China, Germany, and Brazil, countries with the second, fifth and eighth highest gross domestic product at a global level, among the ten most demanding in the world where multinational companies conduct business operations.

According to the measurement at a regional level, El Salvador (11th), Colombia (13th) and Argentina (18th), ranked between 10th and 20th in the Global Index of Corporate Complexity.

In the middle of the table, the research placed Uruguay (38 °), Mexico (39 °), Chile (40 °) and Ecuador (41 °). Meanwhile, the nations with the least complexity to do business in the Latin American region, the Index placed the Dominican Republic (63rd) and Paraguay (72nd).

Contrasts between world powers

The report also revealed marked contrasts between the world powers and the countries bordering on the world, while political, socio-economic and legislative changes take place. The results confirm that the business scenario has become more challenging. The company that seeks to expand into new territories faces a wide variety of possible obstacles.

Trade disputes, tariffs, growing nationalism and political instability point to a shift from globalization to economic fragmentation. That positioned some of the most attractive countries at a commercial level among the most complex countries to do business. More than ever, companies with international ambitions must have a good knowledge of the rules and regulations that prevail at the local level, and they must know how to manage them.

The report prepared based on a combination of statistically evaluated information and qualitative research conducted among local market experts, focuses on three areas: rules, regulations and penalties; accounting and taxes; and hiring, dismissal, and management of payment to employees.

Greece is considered the most complex country due to frequently changing legislation, different regional tax rates and inconsistent treatment of companies by the authorities. In contrast, the three simplest places to do business are the Cayman Islands, Curacao, and Jersey, which thrive through politically stable and pro-business measures.

Europe is complex

In Europe, there are the most complex countries for business, with four countries ranked among the 10 most complex, including Germany. On the other hand, the continent leads the list of the ten simplest countries to do business, among which are the Netherlands, Denmark, Switzerland, and Jersey.

The United Kingdom ranked 43rd among the most complex countries. While it remains a solid place to do business, strict governance standards, a complex tax system and the legislative changes planned after Brexit added complexity. It ranked below Russia but in a position significantly higher than France, where the president has pushed for more business-friendly policies.

Although China is the ninth most complex country, with regional variations in legislation, among other aspects, it presents a notable improvement over the corporate compliance complexity index 2018 prepared by the TMF Group. While these legislative changes pose short-term challenges, they are expected to bring great benefits to international companies that invest in China in the long term.

The United States ranked the eleventh least complex jurisdiction globally, due to its relatively simple regulatory standards and recent tax reforms, making it easier for companies to repatriate profits.

In almost one-third of the countries analyzed, local rules, regulations and penalty systems present major challenges for companies. In many cases, frequent and significant changes, often designed to attract investors, add complexity.

Complexity is not a reason to avoid investment. It is a dimension that must be managed. With the right knowledge and local preparation, good companies can progress anywhere, concludes the report.

The complete ranking of the Global Complexity Index:

01.- Greece

02.- Indonesia

03.-Brazil

04.- United Arab Emirates

05.- Bolivia

06.- Slovakia

07.- Germany

08.- Turkey

09.- China

10.- Peru

11.- El Salvador

12- France

13.- Colombia

14.- Ukraine

15.- Belgium

16.- Portugal

17.- Qatar

18.- Argentina

19.- Spain

20.- Philippines

21.- Poland

22.- Kazakhstan

23.- Nicaragua

24.- Italy

25.- Malaysia

26.- Canada

27.- Vietnam

28.- India

29.- Serbia

30.- South Africa

31.- Costa Rica

32.- Slovenia

33.- Ireland

34.- Norway

35.- Honduras

36.- Luxembourg

37.- Jamaica

38.- Uruguay

39.- Mexico

40.- Chile

41.- Ecuador

42.- Singapore

43.- United Kingdom

44.- Russia

45.- Austria

46.- Taiwan

47.- Czech Republic

49.- Malta

50.- Venezuela

51.- Panama

52.- Guatemala

53.- Romania

54.- Cyprus

55.- Sweden

56.- Hong Kong

57.- Hungary

58.- Bulgaria

59.- Japan

60.- Guernsey

61.- Korea

62.- Mauritius

63.- Dominican Republic

64.- New Zealand

65.- Australia

66.- United States

67.- The Netherlands

68.- British Virgin Islands

69.- Denmark

70.- Switzerland

71.- Israel

72.- Paraguay

73.- Thailand

74.- Jersey

75.- Curacao

76.- Cayman Islands

Source: TMF Group

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