The Global Ease of Doing Business Index 2024 has identified the most and least favorable countries for entrepreneurs in the world, and also showed how the full-scale war in Ukraine has affected global business processes. Find out where Ukraine ranks in the list and which countries offer the best conditions for business development

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According to the Global Business Complexity Index 2024 report by TMF Group, which covers 79 countries, the business environment varies significantly depending on the region of the world and the country. Read more about the results of the study and the geopolitical factors that are currently affecting global business processes in the article below.

What influences the assessment of the business environment of countries?

TMF Group experts analyzed three key aspects:

● Accounting and taxation

● Corporate governance at the international level

● Labor relations and remuneration systems

In addition, the following factors were taken into account:

● The level of digitalization of administrative processes

● The impact of international conflicts

● Changes in trade barriers

● Political stability

Top 5 most favorable jurisdictions for business in 2024

1. Cayman Islands:

➤ No income tax and no VAT

➤ High level of digitalization

➤ English-speaking environment

2. Curacao:

➤ Stable regulatory environment

➤ Simplified tax processes

➤ Developed tourism sector

3. Denmark:

➤ Predictable legal environment

➤ Single digital platform for business services

➤ Flexible labor market

4. Hong Kong:

➤ Strategic location in Asia

➤ Simple tax system

➤ Developed financial infrastructure

5. New Zealand:

➤ Ease of business registration

➤ Online availability of most services

➤ Favorable regulatory environment

In addition, the Netherlands, the United Kingdom, Jersey, the British Virgin Islands, Jamaica, the Czech Republic, Malta, Ireland, Norway, Guernsey, Luxembourg, the United States, Cyprus, and Mauritius took high positions in the ranking.

For the ranking of countries with the lowest taxes for foreigners in 2024, please follow the link.

Which countries are the most difficult to do business in?

The top 5 least friendly countries for doing business in 2024 are:

1. Greece - complex accounting and tax system

2. France - strict labor laws and language requirements

3. Colombia - frequent tax reforms and political instability

4. Mexico - complex banking procedures

5. Bolivia - outdated tax system

In addition, Turkey, Brazil, Italy, Peru, and Kazakhstan are among the 10 unfavorable countries. And China, Argentina, Paraguay, Belgium, Spain, Indonesia, Croatia, Poland, South Korea, and Romania are in the top 20.

Interestingly, last year Spain was ranked 41st in the list of the least entrepreneur-friendly countries, but this year it has moved up to fifteenth place.

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Ukraine's position in the ranking and development prospects

Ukraine ranks 24th in the ranking and is therefore more entrepreneur-friendly than a number of European countries. At the same time, the country has slightly improved its position compared to 2023, as last year it was ranked 17th. And in 2022, before the full-scale invasion, Ukraine ranked 31st.

This indicates the gradual adaptation of the business environment to the challenges of wartime and the implementation of reforms to simplify business.

The war in Ukraine and other geopolitical factors are changing global business processes: 2024 analysis

According to TMF Group's research, the following factors have the greatest impact on global business:

● Rising energy prices

● Supply chain disruptions

● Political instability

Regional differences in impact

➤ EMEA (Europe, Middle East and Africa):

— More than 50% of respondents cite rising energy prices as the main impact of geopolitical instability

— Significant impact of the war in Ukraine on the energy sector

➤ Asia-Pacific and South America:

— 54% and 50% respectively indicate supply chain disruptions as a major problem

— Impact of tensions between the US and China

However, in addition to crises and negative impacts, the report notes that the geopolitical situation has created opportunities for Argentina (in wheat exports and higher export prices) and Vietnam (in particular through the benefits of the China Plus One policy, development “as an alternative production hub” and attracting new investments).

Global consequences of the war in Ukraine

1. Agricultural sector:

● Countries are forced to look for alternative sources of agricultural supplies

● Rising prices for agricultural products

● Need to rebuild logistics routes

2. Chemical industry:

● Delays in the supply of chemicals

● Search for new suppliers

● Rising prices for fertilizers

Given the unstable geopolitical situation, it is important for businesses to have a reliable legal partner to successfully adapt to new realities and challenges. If you are planning to start a business in Ukraine or are considering relocating your company abroad, you can get professional legal advice on Visit Ukraine. Our experts will help you:

— choose the best jurisdiction for your business

— prepare the necessary documents;

— ensure compliance with local legislation.

To get a consultation or full legal support, please contact Visit Ukraine lawyers via this link. Our specialists have extensive experience in supporting businesses both in Ukraine and abroad and will help you solve your problems.

We remind you! Recently, e-Residency has been officially launched in Ukraine. Read what are the conditions of the program in the country and how Visit Ukraine lawyers can help you obtain e-Residency quickly and easily in our previous article.

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