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BUSINESS
COMPLEXITY
INDEX
2019
CONTENTS
04 Introduction
06 Methodology
08 The Global Business Complexity Index 2019
12 Global highlights
16 10 most complex jurisdictions
28 Spotlight on: Rules, regulations and penalties
30 Spotlight on: Accounting and tax
32 Spotlight on: Hiring, firing and paying employees
34 10 least complex jurisdictions
04 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 05
INTRODUCTION
METHODOLOGY
The Global Business Complexity Index The data for each jurisdiction were
was compiled using research conducted statistically weighted and combined
among TMF Group’s specialists in 76 to produce an overall complexity score
jurisdictions*. We measure ‘complexity’ and ranked index.
in terms of how complicated and
unpredictable a business environment Follow-up interviews were conducted with
is – and how difficult it is to understand specialists from the ten highest and ten
01
and operate in. lowest ranking jurisdictions, exploring their
business environments and investigating
An in-depth survey explored three areas: scores in greater detail. Experts were
asked to score the complexity of several
• Rules, regulations and penalties issues on a scale of 1 to 10, with 10 being
• Accounting and tax the most complex. We calculated mean
02
• Hiring, firing and paying employees scores on the same scale.
RULES, REGULATIONS
A N D P E N A LT I E S
ACCOUNTING
AND TAX
*
We use ‘jurisdiction’ to mean an area governed
by a set of laws. A country can include several
jurisdictions which, from a business point of view,
are separate. For example, Curaçao is part of the
Kingdom of the Netherlands but it is an entirely
separate jurisdiction to the Netherlands.
08 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 09
THE GLOBAL
BUSINESS COMPLEXITY
10 MOST COMPLEX JURISDICTIONS 10 LEAST COMPLEX JURISDICTIONS
INDEX 2019
TOP 10
01 GREECE
02 INDONESIA
03 BRAZIL
04 UNITED ARAB
EMIRATES
05 BOLIVIA
06 SLOVAKIA
07 GERMANY
08 TURKEY
09 CHINA
10 PERU
BOTTOM 10
67 NETHERLANDS
68 BRITISH VIRGIN
ISLANDS
69 DENMARK
70 SWITZERLAND
71 ISRAEL
72 PARAGUAY
73 THAILAND
74 JERSEY
75 CURAÇAO
76 CAYMAN ISLANDS
10 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 11
THE GLOBAL
BUSINESS COMPLEXITY
INDEX 2019
GLOBAL
HIGHLIGHTS E X T R E M E LY O R V E R Y C O M P L E X QUITE COMPLEX
8%
International versus domestic 25%
—
Companies setting up and running a business in a new jurisdiction 41%
32%
need the right knowledge and support to achieve their aims.
61%
It is easier for a local firm to incorporate than a foreign-owned
one, with domestic companies facing an average complexity score 34%
of 4.3 out of 10 when incorporating, compared to 5.6 out of 10 for
multinational firms. Reasons vary from basic linguistic barriers
to local representation and procedural challenges. For example,
banks may require copious additional information from foreign
entities applying to open an account and signatories may need M U LT I N AT I O N A L DOMESTIC
9%
18%
55% 34%
57%
26%
M U LT I N AT I O N A L DOMESTIC
*
The processes and procedures required by law to establish an operational entity.
**
The legal obligations for established firms to operate on an ongoing basis.
14 THE GLOBAL BUSINESS COMPLEXITY INDEX
GLOBAL
HIGHLIGHTS
R U L E S , R E G U L AT I O N S
R U L E S , R E G U L AT I O N S
A N D P E N A LT I E S 33% 39% 28% A N D P E N A LT I E S 22% 38% 39%
10 MOST COMPLEX
JURISDICTIONS
Every week, new decisions and 1/GREECE
laws affect the way companies in
Greece do business, manage their
bookkeeping, plan for the future Rapidly changing legislation
combined with complex labour laws
Staffing: demands and restrictions
—
and communicate with clients. puts Greece at the top of the Global
Business Complexity Index.
Greece is a welfare state. Mandated
benefits include Christmas and Easter
bonuses, life insurance, transportation
— allowance and tax breaks for staff who
Greece’s existing legislation can be
Yannis Goussiakis, are married or have children. Although
complicated and new measures are
TMF Group, Greece. the benefits system has been simplified
continually being introduced. Sometimes,
multiple laws conflict and it can be hard for over the last two years, payroll legislation
businesses to know which one to comply changes frequently and is often applied
with. For example, in some cases, VAT retroactively. Many businesses require
refunds are subject to different treatment local support to help them manage
depending on the tax office dealt with. their obligations.
On occasion, individuals declaring
identical dividends have been taxed Businesses face hiring restrictions.
at rates varying by more than 10%. For example, it can be extremely difficult
The Greek government does not always to employ workers from outside the EU
provide enough guidance, making this because government authorities are
a tough jurisdiction for foreign firms reluctant to provide work permits.
to navigate.
2/INDONESIA 3/BRAZIL
Indonesia ranks second place in Once a company has been set up, Despite ranking third for complexity, Understanding the labour force
complexity because its legislation reporting requirements are stringent. Brazil is likely to remain economically —
Rules and standards are set by different While 2017 labour reforms enabled more
changes frequently and regulations attractive.
authorities and can vary significantly. flexibility in collective agreements and
can be at odds with each other. For example, companies must report
It has made strong progress in stabilising union relations, complying with Brazilian
to the Ministry of Finance, the Financial labour laws remains onerous. It was rated
This is exemplified by the enforcement Services Authority and the Central interest rates and government spending
is tightly controlled. Brazil has pioneered 8 out of 10 for complexity, against a mean
of VAT on online sales – a change Bank. However, many of these bodies
the use of technology – it recently score of 5 across the Americas.
announced in 2018 and scrapped in 2019. have different reporting formats and
While Indonesia is gradually modernising, timeframes, often leading to confusion and implemented digital bookkeeping with
the Sistema Público de Escrituração Employment rights remain strong and
the existing legal infrastructure cannot complexity. The associated bureaucracy
Digital (SPED) to standardise tax reporting workers have a good chance of winning
always keep pace with the changes. can be challenging. For example, the tax
and enhance foreign investment. against employers in court disputes.
authorities must, in principle, accept digital Instead of firing employees for
Incorporation and regulation signatures but 'wet signatures' are often wrongdoing, companies often choose
required in practice. However, companies require local insight
are complex to grant severance payments. This can
to navigate the legislative landscape and
— determine what regulators are likely to discourage employees from performing
The Online Single Submission (OSS) “Indonesia is one accept. Furthermore, VAT percentages well during their notice period.
system used for incorporation –
which has launched but is still under of the most complex and tax incentives vary from state to
Labour unions wield significant influence,
state, requiring an even deeper level
development - complicates an already jurisdictions in Asia of local knowledge. particularly in the more traditional
complex process. manufacturing and industrial sectors
Pacific for incorporation. where they have established industry-
The regulatory landscape specific protections for workers.
Companies can bolster their reputations
is constantly shifting by developing good relationships with
and is subject to some unions but compliance with union rules
can prove very expensive.
quite drastic changes."
“You need to become
– Alvin Christian,
TMF Group, Indonesia. ‘seasoned’ when it
comes to the best way
to execute business
in Brazil. Part of that
is trial and error."
– Rodrigo Zambon,
TMF Group, Brazil.
20 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 21
Once you are in the UAE, and you Maintaining a business in the UAE
can involve time-consuming processes,
5/BOLIVIA 6/SLOVAKIA
Demanding regulations and Employee rights Although Slovakia’s legislation Understanding employee benefits
high corporate taxation create — is in line with that of the European and tax compliance
a challenging business environment Businesses need to be aware of the Union, difficulties with technology —
in Bolivia but there are moves priority Bolivia’s government gives implementation are increasing The Slovak Labour Code complies
to workers’ rights and understand with European Union standards but
to reduce complexity. For example, complexity in the short term.
compliance requirements. For example, workers are entitled to benefits that
digital processes and e-signatures are if employees are dismissed, they can
An electronic submission system for few other European countries mandate.
being introduced to reduce paperwork. apply to be rehired and stand a good These include dental insurance and
the incorporation of companies was
chance of success. transportation allowance, benefits
The Bolivian government requires implemented last year. The new portal
is expected to make registration much legally required in only 5% and 16%
businesses to adhere to local policies.
However, many domestic regulations, “The economic stability simpler once fully operational. of jurisdictions respectively.
such as the national labour code, of the country is linked Most penalties for failing to comply with
are not straightforward because of
regional differences in interpretation. to the international the Slovak accounting and tax reporting
system amount to only minor fines
Tax structures vary. Foreign companies prices of gas, petroleum but company managers must operate
operating through a subsidiary pay an
additional 12.5% tax on profits, on top and lithium. A fall in the safely within the law to avoid being
personally liable.
of the standard 25% tax, due to the international prices of
presumption of payment revenues
to foreign shareholders. these commodities can “The Slovak labour code
make the context more is quite complex and
complex by increasing favours, in most cases,
regulations and taxes." the employee."
– Luis Maria Gonzalez, – Julian Dietz,
TMF Group, Bolivia. TMF Group, Slovakia.
24 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 25
7/GERMANY 8/TURKEY
Germany earns a high complexity German requirements In Turkey, modern legislation Managing mandatory pensions
ranking as one of the most — is overlaid on traditional laws —
challenging jurisdictions for As elsewhere in the European Union, KYC which sometimes creates conflicts. Since June 2018, companies with ten
accounting and tax legislation. (Know Your Customer) requirements are However, moves to integrate the or more employees have been required
very strict in Germany and banks demand to register for a private pension scheme.
legal system should smooth out
The country adheres strictly to European a wealth of information from applicants However, employees can withdraw from
wishing to open an account. The process any contradictions over the next them after two months – and frequently
and global regulations, which can wrong-
often takes six weeks or longer. few years, making this an easier do. This means companies can bear
foot foreign investors unfamiliar with
requirements. Federal Office of Justice jurisdiction in which to operate. the administrative burden of setting up
fines for missing deadlines start at 2,500 Meeting the terms of legal formalities is and dismantling pension funds for new
euros and escalate quickly. essential. For example, when establishing When setting up in Turkey, a company employees, contributing to a complexity
a German corporation or making notable must register with the Tax and Social score of 9 out 10, compared to the global
changes to its structure, a German notary Security offices. While both departments mean of 4.
and all company shareholders must require online registration, for now, paper
be present or represented. All official
documents must be submitted in German.
documents must also be submitted.
“We expect Turkey
Companies require a Turkish national will continue to move
Although conforming to these rules can
be challenging, the well-organised German
with a citizen ID number to act as their
representative during some application
towards online-only
system helps to create predictability and and registration processes. processes but these
security for businesses.
New entrants to the market can be
transformations
“Germany is heavily tripped up by complications involving the take time."
accounting profession. For example, unlike
regulated, with rules in many countries where accounting and
– Emir Sagkan,
becoming stricter tax can be separate specialisms, Turkish
accountants have 'mutual responsibility'
TMF Group, Turkey.
all the time. There is for the accuracy of tax filings. This means
a desire for companies they are required to have a greater working
knowledge of tax than many of their
to become more counterparts in other jurisdictions.
transparent."
– Ursula Rutovitz,
TMF Group, Germany.
26 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 27
9/CHINA 10/PERU
China’s complexity is driven Opening up and automating In 2018, a corruption scandal “We think the political
by variation in legislation across — brought down Peru’s President and
different regions, coupled with While China is working to level the created political unrest. However,
situation in Peru will
legislative changes. Although these playing field, some processes are still the country’s current President has improve, making things
more complex for international firms than
changes pose challenges in the short
their local counterparts. However, as the
committed to stabilising the economy simpler for businesses.
term, they are likely to bring huge to restore confidence.
government gradually dismantles this All indicators suggest
benefits to international businesses legislation as part of its drive to open up
investing in China in the future. China to the global economy, the situation As Peru looks to join the OECD, it will aim that if current growth
should improve. to align with global economic standards, is maintained, the
Government legislation is set nationally creating a less complex environment for
but implementation of the laws differs Digitisation will also ease the path multinational companies to navigate. economic outlook
at the provincial level and even between for companies setting up in China. will get much better."
different cities. While China is developing The government has launched the Presently, it takes two to three months
rapidly, there is still a significant disparity third phase of its ‘Golden Tax’ project, for a company to become established
between the ‘first tier’ cities which are open simplifying the submission process as a legal entity. During the registration – Javier Grau,
to foreign investment, and lower tier cities for electronic tax returns. process, multiple documents must be TMF Group, Peru.
which are less internationally aligned. submitted including information about the
company or business and its operational
“President Xi Jinping plans. Operations cannot begin until
is keen to further a registration number has been received.
SPOTLIGHT ON:
RULES, REGULATIONS
A N D P E N A LT I E S
Our analysis spans the areas of regulatory In Switzerland, for example, banking Smoothing the path Compliance challenges
compliance that apply to businesses secrecy legislation laid the groundwork — —
looking to expand overseas. for data protection a decade before GDPR, Technical and regulatory developments Reporting requirements frequently add
making compliance a simpler process. are simplifying processes for companies to compliance complexity.
While globalisation is driving many that expand overseas.
jurisdictions to align with international Companies are responsible for their own • International reporting requirements
regulatory standards, most also maintain compliance with international regulations • Electronic filing and reporting systems are increasing as part of a global
their own local requirements. These two and that of suppliers and partners. This can make it easier to do business and drive to improve transparency – 83%
sets of rules determine the overall level can add complexity but steers all parties boost efficiency as processes become of jurisdictions have committed to
of complexity faced by businesses. Our towards operational alignment. streamlined. Specialists in 68% of exchange information under the
specialists report that most jurisdictions jurisdictions report that technology Common Reporting Standard.
aim to develop local standards that reduces reporting complexity. However,
exceed international norms, enabling rates of adoption vary: official submissions • Official documents must be prepared
international legislation to be pre-empted. to authorities are carried out electronically and submitted in the local language
in 84% of jurisdictions in EMEA but only in 74% of jurisdictions.
50% of jurisdictions in APAC. In some
instances, digitisation has created an • Regions within a jurisdiction may
initial upswing in complexity, especially have different legislative requirements.
in jurisdictions where online platforms Tax requirements differ between regions
are not yet working perfectly or where in 33% of jurisdictions and compliance
hard copies are still required in addition requirements in 22%.
57%
• Residency requirements are not
overly demanding in most jurisdictions,
• Our specialists report that penalties are
relatively high in relation to the severity
of the compliance failure in 70% of
with only 1 in 12 requiring shareholders jurisdictions. Rapidly changing legislation
to live locally. However, a quarter adds to the challenge for companies,
require directors of private companies which must strive to keep on top of
to be native or resident in the country. developments. They can reduce their
of jurisdictions said opening of jurisdictions agree that of jurisdictions said dissolving of jurisdictions require official
a corporate bank account technology is reducing a private company takes more documents for submission to
This requirement shows strong regional exposure to risk by seeking guidance
abroad is time-consuming complexity in their market than six months on average local government authorities trends. It is true of 50% of jurisdictions from local authorities and experts.
to be in local languages across APAC but only 38% in the
Americas and 11% in EMEA. Overall, the global trend towards
international compliance standards
is good for business. While sometimes
adding to the workload, it increases
uniformity across jurisdictions, boosts
transparency and reassures potential
% OF JURISDICTIONS REQUIRING DIRECTORS OF investors that a jurisdiction is a safe and
A P R I V A T E C O M PA N Y T O B E N A T I V E O R R E S I D E N T: secure place for businesses to operate.
A PA C AMERICAS EME A
30 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 31
SPOTLIGHT ON:
ACCOUNTING
AND TAX
PA Y I N G E M P LOY E E S
8
We have investigated the human resources Other benefits are more commonplace 2
and payroll challenges facing businesses. in some regions than others. In the A B C D E F G H I J K L M N
Americas, workers are often paid A SE T T I N G U P N E W E M P LOY E E C O NT R A CTS G M A N A G I N G E M P LOY E E C O M P L A I NTS L C OMPLYING WITH E QUAL
Around half our specialists report that a 13-month salary (a mandatory annual B U N D E R STA N D I N G L O C A L L A B O U R L A W S H M A N A G I N G D I SC I P L I N A RY P R O C E S SE S OPPORTU NITIE S LE GISL ATION
It gets even harder if payroll legislation it is required in only 21% and 16% of F C O M P LY I N G W IT H H E A LT H A N D
SA FE T Y L E G I SL A T I O N
K C O M P LY I N G W IT H B U L LY I N G A N D
H A R A SSM E NT L E G I SL A T I O N
PROBATION PE RIOD S
E SH A R E D M A T E R N IT Y / PA T E R N IT Y L E A V E
F C O M PA SS I O N A T E L E A V E
L C H I L D C A R E A SSI S TA N C E
M FR E E / SU B SI D I S E D E Y E T E STS
S H OU SING/S OCI AL CARE CONTRIBU TIONS
T T RANSPORTATION ALLOWANCE
•S ome employee benefits are required • Managing a disciplinary process G OV E RT I M E PA Y N L I FE I N S U R A N C E U GROCE RY BONU S
by law almost everywhere, including and firing an underperforming employee V PAYING A 13 -MONTH S AL ARY OR BONU S
40%
21% 40%
V E R Y F R E Q U E N T LY Q U I T E F R E Q U E N T LY N E I T H E R F R E Q U E N T LY N O R I N F R E Q U E N T LY
Q U I T E I N F R E Q U E N T LY V E R Y I N F R E Q U E N T LY
34 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 35
10 LEAST COMPLEX
JURISDICTIONS
6 7 / T H E N E T H E R L A N D S 6 8 / T H E B R I T I S H
VIRGIN ISLANDS
The Netherlands is making The banking challenge The financial services industry is the Talent pool
compliance straightforward. — lifeblood of the British Virgin Islands —
Many regulatory processes have As in much of Europe, opening a bank (BVI). Within days of Hurricane Irma As with many other island jurisdictions, the
been digitised, improving efficiency account in the Netherlands involves in 2017, the company registry was BVI promotes the hiring of its own citizens
enhanced KYC (Know Your Customer) over foreigners, leading to a complexity
and security of data exchange back up and running – testament
requirements. A high level of due diligence score of 9 out of 10 for seconding workers
between tax payers and tax is required and companies will need to to the government’s prioritisation from overseas. Strict immigration controls
revenue services. provide detailed information about their of the sector. mean that only highly-skilled workers can
operations in other jurisdictions. move there.
The Dutch government is responsive and The BVI is one of the world’s largest
often willing to provide guidance to help centres for the incorporation of companies,
businesses gain a clear understanding of “Dutch culture focuses especially those which facilitate cross- “The British Virgin
new legislation. It conducts consultations on getting things done border trade, investment and business. Islands could be very
with business groups before new measures The incorporation process is extremely
are introduced, aiming to ensure their and builds towards efficient and can take only a matter of attractive to start-
application is practical and user-friendly. harmony rather than hours. Further, the BVI’s government ups in terms of the
offers lower fees than the governments
It can be hard to secure employees towards power. I think of similar economies, including the cost of setting up and
in the Netherlands. In a strong economy, that’s the best reason to Cayman Islands. maintaining a company."
employers need to offer competitive
benefits if they want to attract the most go to the Netherlands."
skilled workers to facilitate growth. – Charlotte Bailey,
TMF Group, the British Virgin Islands.
– Priscilla Schraal,
TMF Group, the Netherlands.
36 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 37
7 0 / S W I T Z E R L A N D 7 1 / I S R A E L
Switzerland offers a very stable Direct democracy meets liberalism Israel scores well for simplicity Straightforward reporting
legislative environment combined — because its government has requirements
with currency and price regularity Switzerland has a distinctive political worked hard over the last 20 —
and a highly professional international system and any legislation that is years to create an attractive Tax invoices can be issued either
passed must be ‘put to the people’. electronically or manually but most
banking system. environment for overseas
These consultations take time, which ongoing reporting is done online.
gives companies ample warning of businesses – its Ministry of
With a business-friendly attitude, Despite some unique local regulations,
putative changes. New legislation is Economy even has a dedicated Israel is an easy country in which
the country’s tax authorities provide
usually considered very carefully before foreign investment arm. to do business.
companies with guidance and support
it is put to the vote.
to ensure they can comply with laws and
Rules and regulations around hiring,
legislation. Contacting them is easy and
Swiss employers and employees negotiate firing and paying employees are “Israel is a small
most problems can be resolved with
a phone call.
contract terms with a high degree of usually straightforward. In addition, country looking to attract
freedom and terms can even be agreed multinationals do not need a local resident
orally. While severance pay is legally shareholder or director. As long as a local foreign investment and
required in 87% of jurisdictions, it is not fiscal representative is appointed, firms support multinationals
in Switzerland. There are basic national can be entirely foreign-owned. This makes
stipulations, such as a minimum of four it relatively uncomplicated to establish who choose to set up
weeks paid annual leave. However, the a presence. here. There are local
finer details of each contract are agreed
individually. This system allows both Although Israel’s official language compliance processes
parties to achieve the terms they want. is Hebrew, foreign companies can apply to follow, but usually
to keep their documents and tax records
they are straightforward."
“The usual principle is in English, removing an otherwise painful
barrier to entry.
the liberty and freedom – Liat Shibolet,
of the employer and TMF Group, Israel.
7 2 / PA R A G U A Y 7 3 / T H A I L A N D
Paraguay is relatively light on Stable microeconomic conditions While Thailand’s tax and accounting Staffing is straightforward
legislation, compared with its — system is quite complex, it scored —
South American neighbours. Paraguay suffers from a reputation for highly for simplicity because its Hiring and maintaining a local workforce
corruption and a lack of transparency. regulatory landscape and employment is a relatively straightforward process in
It has minimal reporting requirements, However, most of these problems are Thailand. Employee rights are enshrined
rules are business-friendly.
domestically and internationally. For confined to government and publicly in law but few benefits are mandatory and
example, it is not compulsory to maintain owned companies and do not affect the they are easy to administer. The Labour
Despite frequent changes in government,
Transfer Pricing Files (domestic) or day-to-day running of private businesses. Department sets the health and safety
the country’s leadership is consistently
comply with Base Erosion and Profit requirements for companies in each
pro-business and keen to attract foreign
Sharing regulations (international – Corruption is diminishing, thanks to industry but the requirements are not
investment. The National Competitive
OECD). Most jurisdictions implement a government crackdown. In April 2019, complex or overly onerous.
Enhancement Act waives the need for
these standards and Paraguay is highly a high-profile raid took place at the home
work permits for highly skilled overseas
unusual in abstaining from them. of the Director of the Customs Department
of Specialised Surveillance, who had been
workers and investors. Incorporation is “The government is
Despite undemanding regulations, accepting bribes from drug traffickers.
relatively simple. Once all documentation
has been prepared, establishing a company
committed to reducing
penalties for tax offences can be severe. The government is promoting transparency.
In 2014, it passed a law granting citizens
can take less than a day. A local company complexity. Authorities
However, companies can arrange to pay
them in monthly instalments to help avoid free access to certain information sources
secretary or director is not required, so
incorporation can be carried out from
are trying to make the
cashflow crises. including the ‘Portal Paraguay’ website,
which lists the salaries of public officials
anywhere in the world. business environment
including politicians and judges. easier for both Thai and
foreign investors."
“We do have cases
of corruption, but we – Janist Aphornratana,
have had the same TMF Group, Thailand.
microeconomic
conditions for the
last 15 years with
very low inflation."
– Marcelo Gul,
TMF Group, Paraguay.
42 THE GLOBAL BUSINESS COMPLEXITY INDEX THE GLOBAL BUSINESS COMPLEXITY INDEX 43
7 4 / J E R S E Y
7 5 / C U R A Ç A O 7 6 / T H E C A Y M A N I S L A N D S
The politically-stable, pro-business Flexible labour market Authorities have worked hard Lines of communication
jurisdiction of Curaçao in the — to ensure the Cayman Islands is —
Caribbean is part of the Kingdom of The island’s labour market favours the a transparent and pro-business Financial businesses are supported
the Netherlands. It is the second least employer. Zero-hour contracts – with jurisdiction. This has helped it by professional bodies which consult the
no minimum hours guaranteed by the Government, the Chamber of Commerce
complex jurisdiction and is oriented to achieve the lowest complexity
employer and no obligation on the part and regulators and communicate their
towards attracting foreign investment. of the employee to accept work – are score on our index. With its healthy findings to members. The Government
permitted in certain sectors to support economy, this is an easy place for is very engaged with the private sector
Its population speaks English, Dutch, entrepreneurs. Companies can give foreign companies to operate. and consults local businesses on draft
Spanish and Papiamento (a Creole workers temporary contracts up to laws before they are finalised.
language) and has close ties to Latin three times in a row and fire short-term The government has implemented an
America and the United States, making
it a welcoming environment for
employees without notice. Laying off
longer-serving employees will involve
online platform, significantly speeding
up the process of tax reporting.
“The Cayman Islands
multinationals. Foreign nationals can significant costs. has become a very
easily invest in real estate in Curaçao,
unlike many other parts of Latin America transparent place in
where the process can be complicated. “There are minimum which to do business.
wages but they are It has a very stable
Accounting is relatively easy because
foreign companies are permitted to use not high and there’s economic and political
their own accounting practices and do no requirement to pay environment with
not need to ‘translate’ their books to local
standards. Audits are only mandatory a pension or vacation reliable infrastructure.
for larger companies with annual sales allowances." The government is keen
exceeding approximately 5.6 million
US dollars.
– Evert Rakers,
to keep the international
TMF Group, Curaçao. community happy."
– Lesley den Exter,
TMF Group, the Cayman Islands.
46 THE GLOBAL BUSINESS COMPLEXITY INDEX
TMF GROUP –
LOCALISING THE
GLOBAL WORLD
TMF Group helps its clients operate internationally, ensuring they are properly set
up to do business in any country, fully compliant with local and international regulations.
Our work includes helping companies of all sizes with business services such as HR and
payroll, accounting and tax, corporate secretarial, global governance, administration
and fiduciary services for capital markets activities, private equity and real estate
investments. We offer consultancy services to extend our clients’ capabilities and help
companies deal with the complexities arising from growth and expansion.
Our people localise the global world to help businesses succeed, which in turn helps
communities prosper. We believe the only way to be truly ‘global’ is to put local first,
which is what our team
of 7,800 in-country experts do for businesses of all sizes, every day.
None of the information contained in this publication constitutes an offer or solicitation for business, a recommendation
with respect to our services, a recommendation to engage in any transaction or to engage us as a legal, tax, financial,
investment or accounting advisor. No action should be taken based on this information without first seeking independent
professional advice. We shall not be liable for any loss or damage whatsoever arising as a result of your use of or reliance
on the information contained herein.
This is a publication of TMF Group B.V., P.O. Box 23393, 1100 DW Amsterdam, the Netherlands (contact@tmf-group.com).
TMF Group B.V. is part of TMF Group, consisting of a number of companies worldwide. Any group company is not a registered
agent of another group company. A full list of the names, addresses and details of the regulatory status of the companies
are available on our website: tmf-group.com