The UK is among the 10 easiest countries to invest in, with Brazil being the most complex jurisdiction for setting up a business
Administrative services provider TMF Group has compiled a comprehensive report which analyses 77 jurisdictions, locations which account for 92 per cent of the world’s total GDP and 95 per cent of net global FDI flows.
The ranking, which does not relate to trade barriers and any Brexit impacts that now apply, has placed UK in the 10 least complex countries for the first time.
In 2022, it seems that the dust is settling and the impacts of the UK’s departure are becoming clearer so companies are able to start trading more freely again despite the negative impact on some sectors.
One advantage to operating in the jurisdiction is a highly skilled talent base that is accustomed to working internationally and for foreign businesses.
The report compares 292 annually tracked indicators, offering data on key aspects of doing business, including rules, regulations, tax rates, incorporation timelines, payroll and benefits, penalties and other compliance factors.
The TMF Group study has also confirmed that the US, Denmark and Hong Kong are still in the top 10 easiest jurisdictions when it comes to doing business. They are joined by the UK (68th position vs 53rd in 2021) and Jersey, now 72nd. The Cayman Islands (77th) and Curacao (76th) are first and second.
At the other end of the spectrum, Brazil once again tops the rankings as the most complex jurisdiction globally, followed by France. One of the most complex processes in Brazil remains incorporating new companies; at 45 days, it takes much longer than most other countries, with businesses dealing with three layers of regulation.
TMF Group CEO Mark Weil said: “Our 2022 findings arrived at the time of Russia’s invasion of Ukraine and as such, it does not take into consideration the difficulties arising from international sanctioning processes and the overall geopolitical instability. Against that backdrop, we need to do all we can to simplify the path to investing and operating around the world.
“Low friction trade and investment are a good way to stimulate economic growth. We hope that the report will help investors pick and manage their destinations with greater confidence. Our message isn’t to avoid investing in complex jurisdictions as these are often among the most attractive for talent and customer opportunities. Rather it is to invest with eyes open and ready to manage the rules that might otherwise put your licence to trade at risk.”