The UK is the world’s third best jurisdiction for multinational companies to base subsidiaries or ‘entities’ from a governance and regulatory standpoint according to new research
The Mercator Entity Management Report 2021, according to City FM, looked at the challenges that business leaders, general counsels and corporate secretaries face in countries where multinationals with global portfolios have entities, such as subsidiary offices
The researchers studied the busiest global regions in terms of regulatory activity, average cost of regulating entities and the overall time taken to complete activities, right down to the number of hours it takes for regulatory filings.
Unsurprisingly Singapore takes the top spot, followed by Australia, while Kazakhstan came out as the most complex country out of over 160 jurisdictions ranked on both the cost and speed of doing business. The Asia Pacific (APAC) came out as the best region overall.
According to the report, Singapore, Australia and the UK have “the ideal combination of low cost levels and shorter timeframes for completing a range of regulatory activities”, such as board of director or shareholder decisions, officer changes and Power of Attorney activities.
“Singapore, Australia and the United Kingdom are all global financial centres with a long history of managing international trade, and this translates into the ease with which multinationals can manage entities in these locations,” commented Kariem Abdellatif, head of Mercator.
The report showed that while Europe has the highest number of entities overall – based on client portfolios – activity per entity is comparable to the Middle East and North America.
The cost of operating in different regions is affected by factors including the complexity of local legislation and the language requirements for filings.
For example, relatively high prices in the Latin-American region are influenced by higher local professional costs due to complex procedures and requirements for documents to be in the local language.