Mainland China Tops APAC For Business Complexity In 2024 GBCI

Published on June 3, 2024

TMF Group unveils the 11th Global Business Complexity Index, analyzing 79 jurisdictions. Mainland China ranks highest in APAC, while Hong Kong remains the least complex.

TMF Group, a global leader in compliance and administrative solutions, today unveiled the 11th edition of the Global Business Complexity Index (GBCI). This annual publication examines 79 territories worldwide, providing insights into critical factors affecting international business operations.

In this year’s GBCI, Mainland China has ascended to 11th position as the most complex jurisdiction in the APAC region, improving from 15th in 2023. It is preceded by Kazakhstan in 10th place, with Indonesia at 16th and South Korea at 19th. The study highlights that the complexity in Mainland China is primarily due to the localized requirements of e-invoicing within accounting frameworks, necessitating enhanced management and digital preservation protocols.

In Indonesia, business operations have become less complicated due to regulatory easing in market access, including reduced capital requirements for incorporation, lower severance payouts, and the launch of a golden visa program.

Hong Kong, SAR has also seen a rise in the 2024 GBCI, moving from 74th in the previous two years to 76th, reinforcing its role as a pivotal Asian center and the least complex jurisdiction in the APAC area for the survey. Despite the intricate nature of its banking practices, Hong Kong’s appealing tax structure, which is both low and straightforward, and its adoption of AI and outsourcing strategies to manage high wage demands, remain beneficial.

Elsewhere in APAC, Malaysia is enhancing its financial operations through an e-invoicing system that is lowering costs and increasing transparency. Similarly, Vietnam is making strides with its digital transformation, such as enabling online tax filing, which is reducing time and financial burdens on businesses.

However, new businesses in the Philippines continue to encounter delays in securing necessary licenses and registrations due to inconsistent implementation of new legislation. In Thailand, foreign entities face significant hurdles in gaining complete ownership of businesses due to stringent restrictions.

TMF Group’s Head of APAC, Shagun Kumar said:

“The Global Business Complexity Index (GBCI) remains a cornerstone for understanding business complexities within key jurisdictions around the world. This year, Hong Kong, SAR has maintained its position as the least complex APAC jurisdiction, while countries such as Indonesia, Malaysia, and Vietnam have improved their rankings after bringing in significant changes. The APAC region continues to serve as one of the primary growth catalysts for both our clients and our own organisation and I hope this report continues to be an invaluable resource for business decision makers and researchers.”

Here are the rankings for the top and bottom ten jurisdictions in terms of business complexity, according to the Global Business Complexity Index:

Top Ten Most Complex Jurisdictions:

1. Greece
2. France
3. Colombia
4. Mexico
5. Bolivia
6. Turkey
7. Brazil
8. Italy
9. Peru
10. Kazakhstan

Bottom Ten Least Complex Jurisdictions:

70. Jamaica
71. British Virgin Islands (BVI)
72. Jersey
73. United Kingdom
74. The Netherlands
75. New Zealand
76. Hong Kong, SAR
77. Denmark
78. Curaçao
79. Cayman Islands