Poland is the most complex country in Europe to do business in according to TMF Group’s Global Benchmark Complexity Index, and the 7th most complex in the world out of 81 countries.
Argentina ranked as the most complex globally for the second year running
Poland maintained its 2013 ranking, when TMF Group undertook its inaugural Global Benchmark Complexity Index. The next most complex countries in Europe in 2014 were Croatia (27th), Belgium (31st) and Romania (33rd).
The far-reaching annual study by TMF Group, a leading provider of global business and compliance services, has ranked 81 jurisdictions across Europe, the Middle East, Africa, Asia-Pacific and the Americas according to how complex they are to do business in from a regulatory and compliance perspective. The full report can be seen here www.tmf-group.com/complexityindex2014.
Poland joined the European Union in 2004, which helped boost economic growth, and the country has enjoyed growth of 4% per year on average since then. Labour and rental costs are lower than in Western Europe, and there is also a good education system and a big domestic market. All of this means Poland holds big opportunities for global investors – but it is not without challenges.
Generally it takes a long time to start a business in Poland (30 working days on average) and takes significantly longer to prepare, file and pay taxes in Poland (up to 286 hours) versus the OECD benchmark of 175 hours. And while registration of property is cheaper in Poland than the OECD average, it still takes 161 days to register a property and get construction permits.
Commenting on the report, Mikołaj Pluciński, TMF Group Managing Director in Poland, said:
"The high level of complexity in doing business in Poland in one of the legacies of Poland’s communist past. However, Poland offers many opportunities to businesses looking to expand overseas given its large and growing home market. Poland also has low labour costs (the average salary in Poland is four and a half times lower than in neighbouring Germany) and a wealth of highly skilled graduates making it a highly attractive location for FDI."
Isidre Peralta Peña, TMF Group Managing Director in Poland, added:
"While bureaucracy can be an issue for foreign companies looking to establish operations in Poland the business opportunities in Poland are ever increasing thanks to continuing strong economic growth (the OECD forecasts GDP per person will grow between 2% and 6% each year until 2030). The Polish Government is focused on increasing the appeal of the country to foreign investors, which is demonstrated by its investment in Special Economic Zones offering tax incentives and its significant investment in infrastructure, which is expected to reach $155bn by 2020."
Results summary:
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