Ranked the most complex jurisdiction in Europe despite its continued reputation as the continent's 'growth engine'.
When it comes to corporate compliance, no place in Europe is more complicated than Poland. This is according to the Compliance Complexity Index 2018, which assesses 84 jurisdictions globally, based on how difficult it is for companies to adhere to local business regulations and associated issues. These include the time taken to set up, and comply with reporting requirements. The UAE at number one was found to be most complex, followed by Qatar and China. Ireland is the simplest jurisdiction in 84th position.
"Poland's reputation as a European growth engine shows no signs of slowing. But foreign companies looking to establish here face many hurdles," said Jakub Plewka, head of corporate secretarial services at TMF Poland. "The most common of these are long set up times, particularly if there are multiple shareholders and they are based abroad."
Mr Plewka continued: "All company documents and some electronic procedures must be completed in Polish. And while Poland has one legal system, the courts in different cities can interpret laws differently, resulting in an inconsistent approach to reporting and enforcement."
The 10 most complex countries for corporate compliance
- UAE
- Qatar
- China
- Argentina
- Malaysia
- Lebanon
- Brazil
- Vietnam
- Poland
- Uruguay
In line with other countries, Poland has made efforts to simplify its regulatory framework in recent years. But, it must also meet increasing global compliance obligations. "A high number of acronyms have been added to the pile for company heads and their legal teams," explained TMF Poland managing director Mikolaj Plucinski. "These include BEPS (base erosion and profit shifting), CRS (common reporting standard), AMLD5 (anti-money laundering directive), UBO (ultimate beneficial owner) and GDPR (general data protection regulation)."
"That's why we recommend businesses take steps to truly understand the corporate compliance landscape, and work with local partners – such as TMF Poland – to give them the right knowledge for success."
Download the Compliance Complexity Index here.
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