Global Business Complexity Index
Understand and navigate the regulatory, compliance, and operational challenges across global markets
What is the Global Business Complexity Index?
The Global Business Complexity Index (GBCI) is a comprehensive analysis that ranks countries based on the complexity of doing business in them. It evaluates multiple dimensions including regulatory frameworks, tax policies, compliance requirements, and operational challenges that businesses face when establishing or operating in different jurisdictions.
This index serves as a crucial benchmarking tool for multinational corporations, investors, and policymakers to understand the relative complexity of operating in various global markets, and to make more informed decisions about international expansion and investment strategies.
Methodology
Discover how we analyze and rank countries based on multiple complexity factors including regulatory, fiscal, and operational dimensions.
Learn More →Country Rankings
Explore the complete list of countries ranked by business complexity, from the most straightforward to the most challenging jurisdictions.
View Rankings →Trends & Insights
Analyze year-over-year changes in business complexity and understand emerging global trends affecting the business environment.
Explore Trends →Global Complexity Map
Explore the interactive map below to visualize business complexity across different regions. Hover over countries to see their complexity score, global ranking, and key highlights.
Note: Colors indicate complexity levels from very low (green) to very high (red). Countries in light gray have insufficient data.
Key Findings for 2025
Top 5 Most Complex Jurisdictions
- Indonesia - Challenging regulatory environment and frequent policy changes
- Brazil - Navigating complex tax regulations and bureaucratic processes
- Argentina - Stringent currency controls and volatile regulatory framework
- Bolivia - Complicated incorporation process and accounting requirements
- Greece - Intricate labor laws and frequently changing tax legislation
Top 5 Least Complex Jurisdictions
- Curaçao - Efficient digital business processes and transparent governance
- Denmark - Streamlined digital processes and transparent regulations
- Cayman Islands - Business-friendly environment with minimal filing requirements
- Singapore - Straightforward compliance requirements and business-friendly policies
- Hong Kong - Efficient business setup and administration
Regional Insights
EMEA
European markets show diverse complexity levels with Northern European countries generally ranking as less complex, while France and Italy maintain high complexity positions.
View EMEA Analysis →Americas
Brazil continues to be the most complex jurisdiction globally, while South American countries generally face higher complexity than their North American counterparts.
View Americas Analysis →APAC
APAC presents stark contrasts, with Singapore and Hong Kong ranking among the least complex globally, while Indonesia and China maintain high positions in complexity.
View APAC Analysis →Business Impact Assessment
Understanding complexity helps businesses anticipate challenges and allocate resources effectively when entering or operating in different markets. Explore how complexity impacts various business functions:
Accounting & Tax
- Complex tax jurisdictions require specialized local expertise
- Higher frequency of regulatory changes demands constant vigilance
- Increased risk of non-compliance penalties in high-complexity markets
Human Resources & Employment
- Rigid labor laws impact hiring flexibility and termination procedures
- Benefits requirements vary significantly across jurisdictions
- Employee data protection requirements increase administrative burden
Global Trends & Findings (2025)
Key Global Insights
- Digital transformation acceleration: Countries that have embraced digital governance systems have seen significant reductions in complexity scores, with a global average improvement of 12% in administrative procedures.
- Regulatory convergence: Cross-border standardization efforts, particularly in financial reporting and ESG disclosures, are creating more uniform compliance landscapes in developed markets.
- Tax complexity evolution: While 64% of jurisdictions have simplified tax filing processes, base erosion prevention measures have simultaneously increased reporting requirements for multinational entities.
- Remote work impact: Employment regulation is showing increased complexity as 78% of jurisdictions update frameworks to address permanent establishment risks and cross-border employment arrangements.
- Sustainability compliance: New environmental regulations are creating an additional layer of complexity, with 53 countries introducing mandatory sustainability reporting requirements in the past two years.
Global Complexity Indicators
Global Average Complexity Score
61.4/100
↑ 2.3 from 2024
Jurisdictions with Declining Complexity
42%
↓ 5% from 2024
Regulatory Change Frequency
3.7
Major changes per jurisdiction annually
Emerging Complexity Factors
Data Sovereignty Requirements
73% of jurisdictions now have specific data localization requirements, creating complex compliance challenges for global digital operations.
AI Regulatory Frameworks
Divergent approaches to AI governance across major economies are creating a fragmented regulatory landscape for technology companies.
ESG Reporting Mandates
Inconsistent sustainability reporting standards across regions are adding significant complexity to corporate disclosure obligations.
Regulatory & Political Risk Outlook
Legislative Stability Trending Upward
According to TMF Group experts, 58% of jurisdictions express confidence in legislation stability across the next five years, continuing an upward trend observed since 2020. This represents a significant improvement from 2020 when only 35% of jurisdictions predicted no significant legislative changes.
The steady increase in confidence—jumping 17 percentage points to 52% in 2021, then to 57% in 2023, and 58% in 2024—suggests a maturing regulatory environment globally. This stability is largely attributed to well-established compliance processes related to beneficial ownership reporting, know your customer (KYC) protocols, and anti-money laundering (AML) regulations.
Legislative Stability Trend
Percentage of jurisdictions predicting no significant legislative change in the next five years
Regional Regulatory & Political Risk Factors
Key Investment Challenges by Region
While regulatory risk remains the most challenging factor for investors worldwide, political risk is having a particularly strong impact in the Americas. TMF Group research reveals that political risk affects 60% of South American and 46% of North American jurisdictions, as well as half of the top ten most complex countries globally.
Regulatory Risk Components
Percentage of jurisdictions identifying each as a primary complexity factor
Political Risk by Region
Percentage of jurisdictions identifying political risk as a significant factor
Key Risk Insight
TMF Group experts highlight that the true challenge of regulatory complexity often lies not in the volume or intricacy of legislation, but in the speed of implementation. Many jurisdictions report minimal but regular regulatory changes requiring action within days of introduction. Meanwhile, political risk—especially in the Americas—is considered particularly difficult for international businesses to mitigate, as political changes can trigger cascading impacts on regulation, taxation, and trading policies with little advance notice.
Need More Information?
Dive deeper into specific country profiles or request customized complexity assessments tailored to your industry and operational requirements.
Contact for Custom Analysis