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THIRD SCREENING: POLITICAL & LEGAL FORCES

Germany

In principle, business activities in Germany are free from regulations restricting day-to-
day business. German law generally makes no distinction between Germans and foreign
nationals regarding investments or the establishment of companies. Reliable laws enable
companies to plan their investments effectively and licenses granted by the authorities
provide a secure base for breaking ground on a construction project or operating a plant.
Germany has an open and welcoming attitude towards foreign direct investment (FDI).
Importers in Germany need neither an import permit nor an import control declaration.
On certain goods import duties apply, which over the past years have been constantly
reduced. Some goods, such as agricultural products, food, pharmaceuticals, chemicals,
and goods of strategic relevance are subject to certain import restrictions. In such cases
import licenses and surveillance documents may need to be obtained before importing
to Germany

France

France has long laid out a welcome mat to international firms looking to grow their
business. This reflects on France ranks 27th in the world for starting a business,
according to the World Bank and International Finance Corporation (IFC). It takes five
procedures and seven days to set up, including registering with the Centre de Formalits
des Entreprises (CFE) and having company books stamped and initialed by the clerk of
the commercial court. Meanwhile, it takes an average of 59 days and businesses must
obtain planning certificates, a cadastral certificate, a non-encumbrance certificate and
mandatory environmental reports.
Access to credit is one of the most important requirements for expanding businesses,
but is a notoriously tricky thing to achieve. France is home to a robust and
contemporary financial system, but ranks 53rd in the world for ease of getting credit,
highlighting the importance of having local help.

UK

The UK is one of the worlds leading business locations and the number one destination
for inward investment in Europe, but growing businesses still face several hurdles when
expanding in the country. For instances, it takes an average of 13 days to start a
business. Although little or no fee is charged, the number of procedures can make the
process quite laborious for businesses. The UK ranks number one in the world in terms
of ease of getting credit. The robust financial sector and diversified nature of acquiring
credit gives start-ups and developed businesses good access to much needed funds.
Solid treaties and a robust financial climate means investors are well protected in the
UK. However, tax system in the UK is notoriously tricky, largely because the countrys
legal system has been adopted in a piecemeal fashion. It takes around 110 hours per
year to complete the necessary tax obligations, which can involve anything from
corporate and labour charges to environmental and sales taxes.
Russia Federation

After years of subdued expectations there is an air of confidence surrounding the


Russian economy as it pairs its economic potential with economic growth. But
regardless of the positive strides it has made, many challenges to doing business in this
diverse and notoriously tricky economy still remain. Russias infrastructure is heavily
Moscow-centred, with most transport channels of economic significance emanating
from the countrys capital. Commercial transportation is heavily reliant on rail, although
it is insufficiently integrated into world transport systems. For such a large nation, air
links are still underdeveloped, making inter-country travel arduous. Government
transparency is a notoriously fraught problem in Russia. Although steps have been made
to amend problems in central government, overseas firms still find the state of
governance in Russia difficult to navigate.

Italy

Italy is a developed economy with a wealth of potential, but cultural characteristics and
the many layers of bureaucracy constantly leave businesses feeling bewildered, which is
why having local help is a must when doing business in the country.
In order to better navigate the harsh environment, having local help on board to
streamline processes and avoid any potential sticky situations is essential.
Businesses starting up in Italy must contend with exhausting governmental procedures
and difficulties with decision-making and communication. Italys tax system is
painstakingly complex. Companies are required to make 15 payments a year taking 269
hours to deal with. Whats more, the levels of taxation are particularly high, and the
private sector is likely to feel the pinch as the government battles its growing budget
deficit.

US

The strong economy makes the U.S. an extremely competitive marketplace that rewards
efficiency, productivity, and integrity while mandating rigorous compliance with the
nations complex rules and regulations. The continued health of the economy has
increased the cost of doing business in the U.S. to a level higher than many free world
countries. This requires a corresponding higher level of investment in order to compete
with established domestic businesses. Federal, state, and local regulations require a
thorough knowledge of tax, commercial, and labor laws. Corporate scandals in the late
1990s and early 2000s resulting in birth of The Sarbanes-Oxley Act of 2002, which
requires publicly owned companies that are registered with the Securities and Exchange
Commission (SEC) to document financial-reporting controls, has heightened
compliance standards and has increased the cost of compliance while also improving
financial reporting transparency.

Source: http://www.tmf-group.com/