economy
Colombia, among the most difficult countries in the world to do business: what position does it occupy?
Doing business in Colombia is not easy, according to the latest edition of TMF Group's Global Business Complexity Index (GBCI). The firm's report places the country in sixth place among the 81 most complex jurisdictions on the planet to operate companies and invest.
TL;DR
- Colombia is ranked sixth out of 81 jurisdictions in the Global Business Complexity Index (GBCI) for operating businesses and investing.
- The country has not exited the top 10 most difficult business environments globally, though it slightly improved from fifth place in 2025.
- Key complexities in Colombia include frequent updates to tax legislation (VAT, high net worth policies), extensive and resource-intensive tax and accounting processes, and detailed reporting requirements.
- Labor market complexity involves mandatory social security contributions, severance pay, and multi-step hiring processes, making employment significantly more costly and time-consuming.
- Despite advancements in digitalization for company registration and management, establishing and administering legal entities remains a considerable challenge.
- Companies in complex environments like Colombia often resort to outsourcing, reducing staff, closing offices, or freezing new hires.
- Digitalization, such as electronic invoicing, is making tax declarations and company registrations more agile in many jurisdictions, including Colombia.
- Political uncertainty, heightened by upcoming presidential elections, adds another layer of complexity to the business landscape.
- Latin America has a high concentration of complex business environments, with six countries, including Colombia, Mexico, Brazil, Bolivia, Argentina, and Peru, in the global top 10.
- The simplest countries for business operations are Denmark, Hong Kong, and the Netherlands.