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Press release: Mercator Reveals 2024 Global Rankings on Entity Management Efficiency
Mercator® by Citco’s (Mercator) has released its 2024 global rankings, detailing the cost and time required for multinational companies to manage entities across regions and jurisdictions.
The Mercator Entity Management 2024 Report explores the evolving landscape of entity management around the world – based on real-time data covering over 180 jurisdictions and 20 different types of corporate secretarial activities.
By analysing the cost and time required to complete corporate secretarial tasks, the report brings to life how companies are adapting to changing requirements, leveraging technology and navigating intricate regulatory frameworks.
Overall, Singapore secured the top position in 2024, with multinationals benefitting from the city-state’s efficient regulatory framework and advanced digital infrastructure. The UK is close behind in second place, followed by Australia. At the other end of the scale, Indonesia, Brazil and the United Arab Emirates rank lowest with the most costly and inefficient regulatory environments for multinationals to navigate within. These intricate environments demand careful planning and necessitate specific local expertise.
Global findings
According to Mercator’s data, the combined global average costs for multinationals to complete entity-related activities increased by 3% in 2024.
Entity management costs vary globally due to differences in legal systems, adoption of technology, regulatory complexity, and economic environments. Overall, post-COVID tech adoption has reduced manual work, minimized errors and streamlined compliance, generating cost savings in many jurisdictions. However, global economic pressures have simultaneously increased costs for legal services.
Overall, the global average time required for entity management increased by 48% compared to 2023 due to growing disparities between tech-enabled, business friendly regulatory environments and those yet to modernize. Less developed jurisdictions are still relying on traditional legalization methods, physical filings and in person meetings which prolong tasks and further complications.
Regional findings
On a regional level, North America ranks top for cost efficiency, and Asia-Pacific for time efficiency – highlighting the diverse landscape of entity management efficiency on a jurisdictional and regional level.
Europe has seen a period of stability, following successful implementation of EU-wide regulations like Ultimate Beneficial Ownership laws and post-COVID company law adaptations. Middle East and Africa and Latin America still lag behind with some of the most complex and costly jurisdictions.
Kariem Abdellatif, Head of Mercator by Citco comments:
“Recent global elections, impacting half the world’s population, have triggered profound changes across social, political, and business landscapes. In today’s interconnected global economy, effective entity management has evolved beyond mere compliance. It’s now a strategic imperative for multinational corporations, driving good governance, enhancing operational efficiency, and mitigating risks in an increasingly complex international environment.”
“The evolution of global regulations, including ESG and UBO requirements, further underscores the critical need for companies to implement robust corporate governance frameworks that not only ensure compliance but demonstrate ongoing commitment to responsible and sustainable operations.”
“This report aims to equip business leaders and governance professionals with vital insights and benchmarking data to navigate global complexities and optimize entity management practices, transforming compliance into a strategic advantage.”
