Brazil ranks as the third most complex country for doing business

Brazil has been identified as the third most complex country for doing business, according to the Global Business Complexity Index (GBCI) conducted by TMF Group.

The study, which analyzed 78 countries accounting for 92% of global GDP and 95% of foreign direct investment (FDI) flows, placed France and Greece ahead of Brazil in terms of complexity.

Tax and accounting issues are among the primary factors contributing to the complexity of doing business in Brazil.

The country’s tax system, consisting of federal, state, and municipal levels, creates a highly regulated environment.

Additionally, frequent changes in tax legislation pose challenges for corporations entering the Brazilian market.

Despite these complexities, Brazil has implemented measures to simplify company operations.

In the past year, exchange control rules have been streamlined, making it easier for foreign investors to navigate the market.

While the challenging geopolitical landscape has presented difficulties for businesses globally, countries like Brazil have become increasingly attractive to investors.

Over the past 12 months, the country has witnessed a significant influx of direct investment, with US$82 billion recorded, a 60.2% increase compared to the previous year.

Net portfolio investments during the same period reached US$10.3 billion.

Many companies that have faced obstacles operating in countries like Russia due to the conflict with Ukraine have expanded their operations in Brazil.

The country offers numerous long-term investment opportunities, although its complexity and bureaucracy may impact short-term initiatives, explains Rodrigo Zambon, Managing Director of TMF Group Brazil.

The GBCI rankings also highlighted other countries with significant complexities for doing business, such as Mexico, Colombia, Turkey, Peru, Italy, Bolivia, and Argentina.

On the other hand, Malta, Jersey, New Zealand, the United Kingdom, British Virgin Islands, Hong Kong, Curaçao, Denmark, and the Cayman Islands were identified as the least complex countries for business operations.