Hong Kong and New Zealand have once again been recognized as the most straightforward jurisdictions for business operations within the Asia-Pacific region. This comes from the latest Global Business Complexity Index (GBCI) published by TMF Group, a leading global provider of administrative services. The report, which analyzes the business environments of 79 jurisdictions, encompassing 94% of the world's GDP, ranks locations based on over 250 complexity indicators. A higher ranking signifies greater complexity.
The GBCI aims to provide valuable insights for international businesses navigating diverse regulatory landscapes. It assesses factors such as legal and regulatory frameworks, tax regimes, HR and payroll rules, and accounting procedures to determine the overall ease or difficulty of operating in a given country. This comprehensive analysis offers a crucial guide for companies looking to expand or optimize their global footprint.
Hong Kong's Enduring Appeal
For the second consecutive year, the Hong Kong Special Administrative Region secured the fourth position globally as the easiest jurisdiction for doing business, consistently ranking among the top 10 least complex globally. This enduring appeal stems primarily from its simple and low tax system. Hong Kong boasts a territorial tax system, meaning only profits sourced in Hong Kong are taxed, and it offers a flat corporate profits tax rate, currently at 16.5% for assessable profits over HKD 2 million and 8.25% for the first HKD 2 million. This straightforward and favorable tax environment, coupled with its strategic location as a gateway to mainland China and a robust common law legal system, makes it a highly attractive destination for international businesses, ranging from startups to multinational corporations. The government's commitment to free trade and minimal intervention further reinforces its position as a global financial and commercial hub.
New Zealand: A Model of Simplicity
New Zealand also maintained its reputation as a nation where business operations are remarkably simple, consistently featuring in the global top 10 for ease of doing business. This is largely attributable to the New Zealand government's proactive approach to welcoming foreign investment and its streamlined administrative procedures. The country actively promotes a pro-business environment through initiatives like the "open for business" policy, which simplifies company registration, licensing, and compliance requirements. Its highly transparent and efficient regulatory framework, coupled with digital government services, significantly reduces bureaucratic hurdles for both local and foreign entities. Furthermore, New Zealand's stable political environment, strong rule of law, and a robust framework for intellectual property protection contribute to its appeal as a safe and easy place to invest and operate.
Shifting Landscapes Across Asia-Pacific
While some regions maintain their status, others are experiencing notable shifts in their business complexity.
India, ranked 18th in business complexity, has seen an increase largely due to recent regulatory changes. In the past year, India has introduced numerous regulatory amendments aimed at enhancing transparency and accountability, particularly within its financial and corporate sectors. Examples include the implementation of the Goods and Services Tax (GST) and various reforms under the Companies Act. While these measures are anticipated to yield long-term benefits by fostering a more structured and transparent business environment, they have introduced immediate complexities for businesses operating in India, requiring continuous adaptation to new compliance demands. This period of adjustment often involves significant investment in new systems and processes to meet evolving regulatory requirements.
Japan, positioned at 43rd, showed a decrease in business complexity compared to its previous ranking of 38th. This reduction is largely attributed to simplification efforts and government initiatives aimed at providing English support for international financial service companies. Recognizing the importance of attracting foreign capital and talent, the Japanese government has been actively working to reduce linguistic and administrative barriers. This includes providing English-language resources for company registration, tax filing, and other essential business procedures, as well as streamlining visa processes for foreign professionals. These measures are designed to facilitate operations for foreign firms, lower entry barriers, and enhance Japan's attractiveness as an investment destination, particularly in the burgeoning fintech and startup sectors.
Singapore, holding the 48th position, continues to demonstrate remarkable resilience and adaptability in global trade corridors. The jurisdiction has been heavily investing in technology and infrastructure upgrades to solidify its status as a regional hub. Significant investments in digital transformation, smart city initiatives, and advanced logistics infrastructure, such as the expansion of Changi Airport and its port facilities, underpin its competitive edge. Singapore's robust legal framework, pro-business policies, skilled workforce, and commitment to innovation further enhance its appeal as a strategic location for multinational corporations seeking a stable and efficient base in Southeast Asia.
Conversely, Mainland China has entered the top 10 most complex jurisdictions for business operations as of 2025, ranking 10th globally. The report attributes this complexity primarily to frequent regulatory changes and significant regional disparities. The Chinese government's dynamic policy environment, including evolving data privacy laws, cybersecurity regulations, and anti-monopoly measures, presents ongoing challenges for businesses to keep pace with compliance. Furthermore, the vast geographical size and differing local interpretations and implementations of central policies can lead to inconsistencies and additional layers of complexity for companies operating across multiple provinces or cities.
Despite these challenges, the Chinese government continues to offer incentives to attract investment and promote infrastructure development aimed at improving trade logistics. These include tax breaks for high-tech enterprises, subsidies for specific industries, and ongoing investment in transportation networks and special economic zones, signaling a dual approach of tightening regulation while still actively seeking foreign capital.
Asia-Pacific: A Region of Growing Potential
Hagun Kumar, TMF Group's Head of Asia Pacific, noted that there is a growing effort among decision-makers and businesses to alleviate unnecessary burdens associated with doing business in the Asia-Pacific region, which in the past often led to delayed development due to complex investment evaluations. "These efforts are contributing to boosting the economic growth momentum in the Asia-Pacific region, and we expect businesses to continue leveraging and adapting to the potential of the Asia-Pacific region as a core element of their global strategies," Kumar stated.
The GBCI report underscores the dynamic nature of business environments across the Asia-Pacific, highlighting both opportunities and challenges. While some jurisdictions are actively simplifying their regulatory landscapes to attract foreign investment, others are navigating periods of significant regulatory reform. Businesses looking to succeed in this diverse region must remain agile, adaptable, and well-informed to effectively manage the varying degrees of complexity and capitalize on the immense economic potential.
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