Doing Business In.. 2024

Introduction

The sixth edition of Chambers Global Practice Guides: Doing Business In... is issued with the world’s economy still facing many uncertainties in light of different economic and political crises.

The global economy is in a stronger position than it was a year ago with the risk of a global recession having receded and the robustness of the US economy a key driver in this respect. However, inflation and high interest rates in many jurisdictions still present challenges in terms of the global outlook. Geopolitical tensions are also creating potential hazards for the world economy. Global growth is projected to decrease slightly in 2024 as a result of these factors, including the war in Ukraine and high borrowing costs in emerging and developing economies.

2024 will also be a landmark year politically with more than two billion voters in 50 different countries heading to the polls for national elections. With the potential for a change of leadership in the United States, the EU, the United Kingdom and India as well as numerous other countries, this could lead to global socio-economic changes which could impact doing business in certain regions around the world.

A number of these elections will see a rise in populist policies and increasing divergence between far-left and far-right viewpoints.

What is evident again this year is that businesses and investors, who are increasingly interconnected globally, must keep up to date with the many changes in laws and regulations taking place around the world, with the pace of change from governments and regulators seemingly ever increasing.

In terms of the legal and regulatory framework in 2024, the EU is once again driving legislative developments in Europe with significant initiatives envisaged in the sphere of employment law as well as significant initiatives in the financial services sector related to sustainable finance and progressing the capital markets union plan.

The OECD is continuing its influence on global policies through multilateral discussions, particularly in the context of tax matters with the implementation of the OECD’s Two-Pillar solution. Developments will continue in this area in 2024 with a particular focus on reaching agreement on the framework for Pillar One. Whether or not these negotiations can be successfully concluded will impact the international tax agenda for the remainder of 2024.

If these negotiations fail to receive approval, the international tax framework is likely to be destabilised as certain jurisdictions consider revisiting proposals for digital services taxes and other unilateral tax measures.

Another notable trend is the strengthening of foreign investment screening rules to protect national companies and their technology in sensitive industries. In Europe, for example, the Foreign Subsidies Regulation gives the European Commission the power to investigate financial contributions granted by non-EU countries to companies engaging in such activities in the EU and to redress their distortive effects, if necessary.

Looking ahead at key trends in the business environment, the speed of technological change and the rise of generative AI offers hope of generating opportunities for businesses but may also create legal challenges and require adaptation in many areas of business and law. Climate change also looks set to dominate policy discussions as governments continue to adapt policies and introduce new laws to incentivise a transition towards greener economies.

In the context of this global macro environment, the 2024 edition of the Doing Business In... guide provides a concise summary of the key legal and tax considerations for doing business in countries around the world. It serves as an essential reference point for both lawyers and investors looking to understand the basic principles and legal frameworks of the relevant jurisdictions.

The contributing experts for each jurisdiction have followed a common template, allowing readers to easily compare and contrast different jurisdictions.

The guide also summarises recent developments and updates that are of particular importance for those doing business in 2024.

We would like to thank all of the participating contributors for their efforts in making this Doing Business In... guide such a vital resource and an essential component of the Chambers Global Practice Guides series.