Cost of governance remains high in Latin America
Special Report
Latin American Entity Portfolio Management
What’s in this report from Mercator:
The high cost of corporate governance is holding back multinational companies in Latin America, with the continent 31% more expensive than Europe and 65% slower than Northern America to operate in, according to Mercator’s report.
Data from Mercator’s proprietary Entica platform finds:
- High levels of bureaucracy and slow adoption of digitalized processes throughout Latin America (LATAM) are among the key reasons why the region is one of the most expensive and complex jurisdictions for multinationals to operate in.
- LATAM is on average 31% more expensive to operate within than Europe (the cheapest region).
- LATAM is on average 65% slower than North America (the fastest region).
- Ranked per individual jurisdiction, Panama emerges as the most favorable location overall in which to establish and maintain entities in 2023, based on the overall cost and time involved in managing entities.
