Brazil is the world’s most complex country in which to do business – TMF Group

RIO DE JANEIRO, BRAZIL – Latin America is the most complex region for doing business in the world, and Brazil tops the list as the most complex country, according to the Global Business Complexity Index – 2021, TMF Group’s annual report.

The Top 10 also includes Mexico (3rd), Colombia (4th), Argentina (7th), Bolivia (8th), and Costa Rica (9th). France is the second most complex country. Completing the top 10 are Turkey (5th), Indonesia (6th), and Poland (10th).

Constantly changing legislation and the requirement to work with different governmental bodies are among the challenges faced by companies looking to do business in Brazil. “Brazil is a market of great international interest, but the country poses challenges related to bureaucracy,” notes TMF Group.

According to Rodrigo Zambon, director of TMF Brazil, complexity in Brazil is driven by a multi-layered management system, where authorities at the federal, state and municipal level have substantial legislative power.

“Brazil is one of the few jurisdictions where the business incorporation process must be registered at all these levels of government. Many taxes are also levied at each of the levels, leading to tax rates varying between cities and states,” he said.

Among the 77 countries in the report, Denmark is the least complex, followed by Hong Kong and the Cayman Islands. The tax haven’s inclusion suggests that the survey gives priority to the so-called neo-liberal agendas, on the decline since 2008. Curaçao and the British Virgin Islands are also among the best.

In terms of labor management, TMF criticizes the mandatory salary adjustments in some cases and praises the reforms made in the past 5 years. “A large part of the labor policies in Brazil are reminiscent of concepts adopted in the 1940s,” Zambon notes.