Brazil ranked first in the list of the most complex jurisdictions to do business in 2021, according to the eighth annual Global Business Complexity Index (GBCI).
The bureaucracy involved in setting up a business and handling different tax rates in cities and states puts Brazil at the fore in the most complex scenarios for business.
Six other countries in Latin America, including Mexico, Colombia, Argentina, Bolivia, and Costa Rica, were among the top ten countries with trade complexities.
France and Poland ranked second and tenth in terms of business complexity, respectively, in the list, while the United Kingdom moved to 58th place.º put.
Indonesia, which ranked sixth on the list, is the only jurisdiction in the Asia Pacific region that was in the top ten.
The report indicated that new international trade agreements as a result of Britain’s exit from the European Union provided more clarity and stability for doing business with and within Britain.
Meanwhile, Denmark is the simplest jurisdiction to do business, followed by Hong Kong, Cayman Islands and Ireland.
The report attributed Denmark’s success to the straightforward incorporation process, acceptance of documents in English and digitization.
GBCI, from professional services firm TMF Group, analyzes rules, regulations, penalties, tax rates, and compliance issues in 77 jurisdictions, which represent 92% of global GDP and 95% of global FDI flows.
“The consistent observation for eight years of reporting on complexity is that some of the most attractive markets to work in are the most complex and the most punishing for mistakes,” said Mark Wei, CEO of TMF Group.