TMF Group: Poland 7th in Europe and 12th in the world as the least business-friendly country

by   CIJ News iDesk III
2024-06-11   12:03
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Poland ranks 7th in Europe and 12th in the world among the least business-friendly countries, according to the eleventh edition of the Global Business Complexity Index report compiled by TMF Group. Poland improved its position by three places compared to the previous two years.

"We are seeing progress in the digitalisation of processes in Poland. This is a big facilitation for investors and those doing business on the Vistula. One example is the ability to carry out all financial reporting activities in an IT service. Another example is the growing interest in the structure of the simple joint-stock company (PSA) introduced just over two years ago, which only needs PLN 1 in capital to set up and is characterised by simple rules regarding management structures or liquidation. The time of turmoil associated with the introduction of the Polish Order has also passed, which is being welcomed by those doing business with relief and is improving sentiment," said TMF Group's director for Central and Eastern Europe Joanna Romańczuk.

Among the countries where it is most difficult to do business, France ranks first, followed by Greece. Just behind them ranked respectively: Colombia, Mexico and Bolivia. In Europe, it is more difficult to run a business in Italy, Belgium, Spain and Croatia than in Poland.

The best in the world at eliminating obstacles to doing business are the Cayman Islands (a dependent territory of the United Kingdom), Curaçao (a dependent territory of the Netherlands), Denmark, Hong Kong (a special administrative region of the Republic of China) and New Zealand. Among the countries where it is easiest to do business in Europe, in addition to Denmark, which has ranked highest in this category for years, are the Netherlands, the United Kingdom, the Czech Republic, Malta and Ireland, according to the report.

It was pointed out that companies in Poland are burdened by, among others, the necessity to report the same information repeatedly to many different institutions and the volatility of regulations.

The authors of the TMF Global Complexity Index 2024 (GBCI) report identified key themes shaping the global business landscape and regulatory environment such as the impact of global regulatory compliance on foreign investment, geopolitical factors and bridging economies, uncertain times and strategies for success - technology and employee retention.

While a number of factors influencing growth were cited by jurisdictions, IT and technology topped the list as the most influential. Technology offers growth in a number of ways, as it can provide opportunities for growth where jurisdictions have technological expertise in manufacturing and can increase their market share through manufacturing. The use of technology to increase productivity was also identified in relation to making work more efficient, according to the report.

The majority of jurisdictions are struggling to attract and retain talent (78%), with this figure even higher in EMEA (90%) and APAC (79%).

The ability to respond effectively to demand in this area depends largely on two factors: local labour laws and the potential of regional talent. Jurisdictions with restrictive labour laws and a strong union presence - or those with a shortage of available talent - are naturally much less able to flexibly adjust staffing levels, it was reported..

The authors of the TMF Global Complexity Index 2023 report looked at 79 jurisdictions accounting for 93 per cent of global GDP and 88 per cent of net foreign direct investment. They compared 292 annually monitored indicators on key aspects of doing business in terms of administrative rules and ensuring regulatory compliance faced by entrepreneurs planning to do business in their chosen market. For the first time, Saudi Arabia was included in the list, ranking 37th.

Source: TMF Group and ISBnews
Photo: TMF Group

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