In the report titled Global Business Complexity Index 2020, TMF Group's experts compared the main country requirements within 77 jurisdictions around the world for administrative and regulatory compliance for entrepreneurs planning to do business in the selected markets.
Although, the results are not directly comparable due to slight changes to the report’s methodology, Poland has almost certainly become relatively simpler in compared to both European and global countries in the past twelve months. Unfortunately, the company's experts argue that these changes do not result from introducing more business-friendly regulations.
“The better position of our country in this year's survey may suggest that it is easier to do business in Poland compared to last year. Unfortunately, it is not so. The change in the position in the ranking is rather due to the changes that took place in relation to other countries. This is a sad finding" - explains Joanna Romańczuk, Managing Director of TMF Group in Poland and adds: - Companies from abroad wanting to start up in Poland are invariably facing great challenges. All corporate documents must be completed in Polish, and it can take a very long time to set up a company for entities whose parent companies are located outside Poland. Such factors cause that such an important European market as Poland has high entry barriers, which forces investors to cooperate closely with local partners, who move freely in terms of national regulations.
In Europe it is easiest to do business in Denmark, Holland, Ireland, Switzerland and Malta. In Greece, on the other hand, where TMF Group experts estimate that around 70 new tax regulations are introduced every year and during the tax year. Just behind Greece are Turkey, France, Croatia and Belgium. Among our immediate neighbours, it is easier to run a company in Ukraine, the Czech Republic and Germany, and more difficult in Slovakia or Russia.
The Global Business Complexity Index 2020 report also shows that Poland was ranked 34th in the world in terms of the complexity of its business environment (in this year's report TMF Group experts analysed 77 jurisdictions). The leaders on a global scale in terms of ease of doing business in 2020 are respectively: Curaçao (Netherlands dependent territory), United States, Jamaica, Denmark and British Virgin Islands (British overseas territory in Central America). The world's hardest to do business are Indonesia, Brazil, Argentina, Bolivia, Greece and China.
Poland's position in the middle of the ranking, which means complex conditions for doing business, results from frequently changing legal regulations; a relatively difficult process of setting up a company for an investor from abroad; and extremely burdensome administrative requirements in the area of corporate secretarial services. In terms of accounting and tax regulations, Poland was even lower (38th place in the global scale), similarly in terms of regulations related to hiring and remuneration of employees (35th place).
“Poland has the sixth largest economy in the European Union and a skilled workforce. It has many of the attributes required to succeed, but its primary challenge – along with much of central and eastern Europe – is reducing the administration for businesses and making steps towards e-government following the example of the Nordic countries. If Poland takes these steps, it will see an influx of business and investment." says Juraj Gerzeni, TMF Group's director for EMEA, covering Europe, the Middle East and Africa.
Published from 2013, the Global Business Complexity Index report is a combination of statistical and qualitative analysis by TMF Group's local experts in over 80 locations. This year's report analyses key areas of business administration and compliance in 77 jurisdictions, from the time it takes to set up a company in a given country, through changes in tax legislation, to employee compensation and benefits regulations. In total, this year's ranking includes over 250 different criteria.
You can download the full Global Business Complexity Index 2020 report HERE.