The best country for your company to do business in or to turn your brand into a Global Brand will depend on your company’s characteristics, such as mission, and vision, and obviously on how they fit in the new market and vice-versa: LINK TO GLOBAL BRANDS ARTICLE.However, there are MACRO business indicators that serve as a reference to help make choices and which should always be considered.
The Forbes List Best Countries for Business stands among these Macro Indicators. It involves 153 nations, ranked in order, wherein 15 different factors are evaluated, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade, and monetary), red tape, and investor protection. There were also new metrics added: labor, infrastructure, market size, living standards, and political risk, to provide better indicators for determining if a country is appealing for capital investment. Data is based on reports published by Freedom House, Heritage Foundation, Property Rights Alliance, United Nations, Transparency International, the World Bank Group, Aon, Marsh & McLennan, and the World Economic Forum.
We share here the top 10 and some of the main comments. We also drew some excerpts of reforms implemented by some nations in order to improve and facilitate negotiations in their territory.
The full list can be viewed here: https://www.forbes.com/best-countries-for-business/list/
These are the most biggest economies based on data from The International Monetary Fund, 2018
✔ Trading across borders
Brazil reduced the time for document compliance for both exporting and importing by improving its electronic data exchange system. This reform applies to both Rio de Janeiro and São Paulo.
✔ Starting up a business: China made starting up a business easier by streamlining registration procedures. This reform applies to both Beijing and Shanghai.
✔ Paying taxes: China made paying taxes easier by introducing several measures to ease compliance. This reform applies to both Beijing and Shanghai.
✔Starting up a business: India made starting up a business faster by merging the applications for the Permanent Account Number (PAN) and the Tax Account Number (TAN) and by improving the online application system. This reform applies to both Delhi and Mumbai. Mumbai also made starting up a business faster by merging the applications for value-added tax and the Profession Tax (PT).
✔ Dealing with construction permits: India reduced the number of procedures and time required to obtain a building permit by implementing an online system that has streamlined the process at the Municipality of New Delhi and the Municipality of Greater Mumbai.
✔ Getting credit: India strengthened access to credit by amending the rules on priority of secured creditors outside reorganization proceedings and by passing a new law on insolvency that provides a time limit and clears grounds for relief to the automatic stay for secured creditors during reorganization proceedings. This reform applies to both Delhi and Mumbai.
✔ Protecting minority investors: India strengthened minority investor protection by improving guarantees in cases of detrimental transactions between interested parties. This reform applies to both Delhi and Mumbai.
✔ Paying taxes: India made paying taxes easier by requiring that payments be made electronically to the Employees Provident Fund and introducing a set of administrative measures easing compliance with corporate income tax. This reform applies to both Delhi and Mumbai.
✔ Trading across borders: India reduced import border compliance time in Mumbai by improving infrastructure at the Nhava Sheva Port. Export and import border compliance costs were also reduced in both Delhi and Mumbai by eliminating merchant overtime fees and through the increased use of electronic and mobile platforms.
✔ Enforcing contracts: India made enforcing contracts easier by introducing the National Judicial Data Grid, which makes it possible to generate case management reports on local courts. This reform applies to both Delhi and Mumbai.
✔ Resolving insolvency: India made resolving insolvency easier by adopting a new insolvency and bankruptcy code that introduced a reorganization procedure for corporate debtors and facilitated a continuation of debtors’ business during insolvency proceedings. This reform applies to both Delhi and Mumbai.
✔ Getting electricity: Italy made obtaining electricity easier by streamlining the application process and reducing external works and meter installation times.
✔ Paying taxes: Italy made paying taxes less costly by temporarily exempting employers from social security contributions. Italy also made paying taxes easier by abolishing the Comunicazionedati IVA (value added tax communication form).
✔ Paying taxes: Japan made paying taxes less costly by reducing the legal rate for corporate income tax and rates for other taxes including mandatory work contributions. This reform applies to both Osaka and Tokyo.
✔ Resolving insolvency: Panama made resolving insolvency easier by adopting a new insolvency and bankruptcy law that introduced a reorganization procedure for corporate debtors and facilitated a continuation of debtors’ business during insolvency proceedings. The new law also allows creditors a greater participation in important decisions during insolvency proceedings and regulates insolvency practitioners.
✔ Getting electricity: The Philippines reduced the time to get an electricity connection by implementing a new asset management system and by creating a new scheduling and planning office.
✔ Paying taxes: The Philippines made paying taxes easier by introducing a new electronic system for payment and collection of housing development fund contributions.
✔ Trading across borders: Taiwan, China, made exporting easier by allowing different organizations to electronically issue certificates of origin.
✔ Enforcing contracts: Taiwan, China made enforcing contracts easier by introducing an electronic filing system.
✔Labor market regulation: Taiwan, China, adopted legislation that increased the number of mandatory paid annual leave of absence days and the number of weekly days off.
PLEASE NOTE: The second largest economy in the world (China) and the third (Japan) are 66 and 21 on the list of top countries for doing business, respectively. China is restrained because of the lack of trade and currency freedom. Japan has cut down on the corporate tax rate by 8 percentage points since 2012, but its taxes are still lower than the majority of developed countries, according to the World Bank. Japan stands among the top 10 most advanced nations in innovation and infrastructure (a pro).
Other general notes indicate that the United States, China, and India remain FDI prime potential destinations. Developing Asian countries are still dependable as it relates to their economic performance. Also, an investment increase is foreseen in Southeast Asia, i.e. Indonesia, Thailand, Philippines, Vietnam, Singapore. In the aforementioned order, they have improved their ranking to most promising receiving countries.
On the other hand, Ireland (#1 in 2017) has drawn in some of the world’s largest companies. Tax rates, investor protection, and personal freedom have been reduced to almost a minimum. Melanie Bowler, a Moody Analytics economist, confirms that its educated workforce and a 12.5% corporate tax rate, are one of the lowest in Europe. That is why it is very attractive for entrepreneurs, as well as for the language. "If you are looking to do business in Europe, you would want to share a common language," she says. Dublin is the European headquarters for high-end US technology, including Google, LinkedIn, Twitter, and Facebook.
The numbers support international negotiations: global economic trends and a technology boom are increasingly linked together. More options open up every day and processes are digitalized, making internalization processes more accessible for companies. And among our goals is to be your ally in helping you "understand" a "global" world without borders. Translation services are becoming more and more important: much experience is required because it’s not only about translating, but more about guiding the customer towards understanding others. Are you on board? Would you like us to accompany you in an internationalization process? How well prepared is your company?