Press Release 4 minute read

Latin America has five countries among the top ten most complex in the 2022 Global Business Complexity Index; Curacao is the simplest in the report

06 September 2022

TMF Group, a leading provider of compliance and administrative services, has today launched the ninth edition of its Global Business Complexity Index (GBCI).

Brazil is in the lead again as the most complex jurisdiction, maintaining its position from last year’s GBCI. It is followed by Peru (3rd), Mexico (4th), Colombia (5th) and Bolivia (9th) in the top ten. Argentina, Chile, Nicaragua, and Paraguay are also among the top 20, which shows that the region accounts for 45% of the 20 most complex jurisdictions in the world.

This complexity is driven by political instability (only 30% of the jurisdictions foresaw stability in this area in the next five years), the adoption of new reporting, such as CRS (Common Reporting Standard), long dissolution processes, a large number of mandatory benefits that should be offered to employees, the presence of labour unions in all jurisdictions and industries, and the persistence of manual processes for things like payslips, filings and other related documents.

The frequency of regulatory changes is also another reason for the complexity in the region, but there are also silver linings ahead. The Covid-19 pandemic has brought a quicker than expected digitalisation process in Latam, and this will drive complexity down in the long run. South America specifically is known for its abundance of natural resources, which presents opportunities for companies who seek to invest in the region. ESG (Environment, Sustainability and Governance) is a rising trend this year and, due to the aforementioned natural resources, a key part of the future plans of many jurisdictions in the area.

At the other end of the spectrum, some of the least complex jurisdictions can also be found in the region. The Cayman Islands are ranked as the least complex jurisdiction this year, followed closely by Curaçao as the second simplest and the British Virgin Islands as the fifth. Those are hubs for investment, especially for wealthy individuals and families. Individuals who invest in these countries are also following the ESG trend and looking for those credentials, despite not having legislation on the subject at the moment, although this could change in the near future according to local specialists.

Massimo Canovi, Head of North Latam, commented on the region’s position in this year’s rankings:

Federico Liutvinas, Head of South Latam at TMF Group also spoke about the GBCI 2022’s observations:

Michael Seligman, Head of the Americas at TMF Group, states:

Media Contacts:
Giampaolo Arghittu, Global External Communications Manager,
T: +39 334 947 95 84

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