[Global] France ranked the most complex country to do business in

France has been ranked as the most complex country to do business in, according to the 2023 Global Business Complexity Index (GBCI), fDi Intelligence reports.

The ranking, published by global professional services firm TMF Group, is now in its 10th year. TMF’s 2023 report surveyed experts and used data from research agency Savanta to create its ranking. 

The GBCI reportedly covers 78 jurisdictions, accounting for 92 per cent of the world’s total gross domestic product and 95 per cent of net global foreign direct investment (FDI) flows. Its findings are determined by indicators on key aspects of doing business, such as payroll and benefits, incorporation timelines, rules, regulations, tax rates and other compliance factors. 

A TMF France expert said that, although France is a business-friendly country it can also be “challenging for foreign businesses”. They added, “Labour laws are particularly complex, with a high [level of] protection for the employees.” 

However, the report stated that France remains appealing to international investors. “Despite the legislative challenges, France is a highly attractive jurisdiction in which to do business, and in certain areas the government is making progress in developing more simplified processes,” it read.

In 2022, France reportedly tracked the highest number of inbound greenfield FDI projects since 2019 and the second highest amount of capital investments on record, according to data from fDi Markets.

In 2021 and 2022, Brazil was deemed the most complex country and France took second place for the previous two years. According to the report, the second-most complex country in 2023 was Greece as a result of the “number of changes in legislation that occur each year, particularly when it comes to accounting and tax”.

Brazil’s improved position was reportedly a result of steps taken to make business simpler. Over the past 12 months, foreign exchange control rules have been simplified and there was a revision of the regulatory environment for fund services, according to the report.

Cayman Islands, Denmark and Curaçao top the list for the least complex places to do business, while the US no longer featured as one of the top ten easiest places to do business at all. The UK, by contrast, moved down the ranking for the increased ease of doing business there despite 2022’s political turmoil.

The GBCI also touched on the subject of business confidence and the rising demands of compliance. It stated that more compliance regulation “is having an impact on business expansion, with almost half (48 per cent)  of jurisdictions predicting that some companies will rethink their goals due to increased regulatory obligations”.

“There is also an expectation that global compliance legislation will continue to tighten as a result of geopolitical tensions,” the report read.

Source: fDi Intelligence

(Quotes via original reporting)

France has been ranked as the most complex country to do business in, according to the 2023 Global Business Complexity Index (GBCI), fDi Intelligence reports.

The ranking, published by global professional services firm TMF Group, is now in its 10th year. TMF’s 2023 report surveyed experts and used data from research agency Savanta to create its ranking. 

The GBCI reportedly covers 78 jurisdictions, accounting for 92 per cent of the world’s total gross domestic product and 95 per cent of net global foreign direct investment (FDI) flows. Its findings are determined by indicators on key aspects of doing business, such as payroll and benefits, incorporation timelines, rules, regulations, tax rates and other compliance factors. 

A TMF France expert said that, although France is a business-friendly country it can also be “challenging for foreign businesses”. They added, “Labour laws are particularly complex, with a high [level of] protection for the employees.” 

However, the report stated that France remains appealing to international investors. “Despite the legislative challenges, France is a highly attractive jurisdiction in which to do business, and in certain areas the government is making progress in developing more simplified processes,” it read.

In 2022, France reportedly tracked the highest number of inbound greenfield FDI projects since 2019 and the second highest amount of capital investments on record, according to data from fDi Markets.

In 2021 and 2022, Brazil was deemed the most complex country and France took second place for the previous two years. According to the report, the second-most complex country in 2023 was Greece as a result of the “number of changes in legislation that occur each year, particularly when it comes to accounting and tax”.

Brazil’s improved position was reportedly a result of steps taken to make business simpler. Over the past 12 months, foreign exchange control rules have been simplified and there was a revision of the regulatory environment for fund services, according to the report.

Cayman Islands, Denmark and Curaçao top the list for the least complex places to do business, while the US no longer featured as one of the top ten easiest places to do business at all. The UK, by contrast, moved down the ranking for the increased ease of doing business there despite 2022’s political turmoil.

The GBCI also touched on the subject of business confidence and the rising demands of compliance. It stated that more compliance regulation “is having an impact on business expansion, with almost half (48 per cent)  of jurisdictions predicting that some companies will rethink their goals due to increased regulatory obligations”.

“There is also an expectation that global compliance legislation will continue to tighten as a result of geopolitical tensions,” the report read.

Source: fDi Intelligence

(Quotes via original reporting)