UAE ranks three places ahead of Singapore in terms of least complex jurisdictions to set up and operate a business in the global business complexity index, published by TMF Group, a leading provider of compliance and administrative services.
The UAE is at the 61th place while Singapore is placed at 58, which means setting up a business in the island nation is more complex than in the UAE.
France takes the top spot in this year’s index, making it the most complex country, having placed second in the previous two years. It is followed by Greece Turkey and Italy.
Over the year, these EMEA countries experienced a significant change in their business complexity due to the legislative and economic challenges that are taking place. Foreign businesses in France are facing difficulties in terms of complex labour laws. Employers in Italy are investing more to retain their employees due to ‘the great resignation’.
The least complex European jurisdictions for conducting business are Denmark, The Netherlands, United Kingdom, Jersey, and Malta. Ranked as the second least complex globally, Denmark is straightforward with its incorporation process for businesses, paired with its political, social, and economic stability. Malta, a new entry in the ten least complex jurisdictions worldwide, is generous with its corporate tax rate and refunding system.
The analysis highlights how geopolitical challenges are affecting the companies’ expansion plans and how global economic factors such as inflation, employee attrition and the war in Ukraine are impacting the businesses.
Since the start of the war in Ukraine, 63% of jurisdictions have predicted disruptions in ongoing supply chain, paired with increased energy prices and barriers to international trade. For instance, the drop in imported goods in Germany has contributed to the inflation globally.
This widespread inflation is analysed to be one of the contributors of decline in confidence in future economic stability which was 82% in 2020 to 71% in 2023. On the same note, approximately 98% of EMEA jurisdictions are seeing employees asking for better financial packages, pushing administrative complexity for the employers
Also published on Medium.
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