France stands out as the most complex country to do business in, according to the 2023 iteration of the Global Business Complexity Index (GBCI) — a ranking published by global professional services firm TMF Group.

Now in its 10th year, TMF’s 2023 report surveyed experts and used data from research agency Savanta to create its ranking. The GBCI spans 78 jurisdictions, accounting for 92% of the world’s total gross domestic product and 95% of net global foreign direct investment (FDI) flows. Its findings are determined by indicators on key aspects of doing business, such as incorporation timelines, payroll and benefits, rules, regulations, tax rates, and other compliance factors. 

A TMF France expert said that while France is a business-friendly country, it can also be “challenging for foreign businesses”. “Labour laws are particularly complex, with a high [level of] protection for the employees,” they explained. 

Still, France remains appealing to international investors, the report eagerly pointed out. “Despite the legislative challenges, France is a highly attractive jurisdiction in which to do business, and in certain areas the government is making progress in developing more simplified processes,” it read.

In 2022, France tracked the highest number of inbound greenfield FDI projects since 2019 and the second highest amount of capital investments on record, according to fDi Markets data.

Brazil had previously been deemed the most complex country in 2022 and 2021, while France had ranked in second place for the previous two years. The second-most complex country in 2023, according to the report, was Greece due to the “number of changes in legislation that occur each year, particularly when it comes to accounting and tax”.

Brazil’s fall to third place was on account of the steps taken to make business simpler. Over the past 12 months, there has been a simplification of foreign exchange control rules and a revision of the regulatory environment for fund services, according to the report.

As for the least complex, Cayman Islands, Denmark and Curaçao top the list, while the US no longer featured among the top ten easiest places to do business. By contrast, the UK moved down the ranking as it becomes simpler to do business in, the report said, despite the political turmoil of 2022.

Elsewhere, the GBCI touched on business confidence and the rising demands of compliance. It stated that more compliance regulation “is having an impact on business expansion, with almost half (48%)  of jurisdictions predicting that some companies will rethink their goals due to increased regulatory obligations”.

“There is also an expectation that global compliance legislation will continue to tighten as a result of geopolitical tensions,” it read.