The Indian government has been extremely vocal about ‘Make in India’ initiative, and there is no denying that the start-up culture has only improved in last five years. However, when it comes to doing business, the entire process of setup and getting through the compliance matters is still a challenge. Most companies struggle with legal and compliance updates in India, primarily because they are not sure of how to follow and keep up with regulatory compliance needs. In this post, we are discussing more on the reasons why companies in the country are grappling with compliance.
- Because expertise is a concern. Being compliant is not as easy as it may seem. Most companies don’t have an in-house team to deal with compliance matters, which only makes things worse. There are over 58,000 compliance matters, over 1,000 acts and as many as 3,000 filings, and bunch of these are applicable to even the newest companies. Most companies don’t have access to a comprehensive compliance database that must be followed, which is coupled with lack of expertise.
- Because there is not enough awareness. To think of it, most board members, directors and key management personnel have little or no understanding of how compliance works, and with Companies Act, 2013, these people can be held responsible for issues related to non-compliance.
- Because there’s not a comprehensive database for compliance and legal updates. There are over 2,000 government websites and many sources that offer compliance updates, and various regulatory requirements change multiple times, often in the same day. This itself is a challenge, because there is no comprehensive means of accessing all of that information.
How to reduce compliance struggle?
There is no better means to manage compliance struggle but to digitize and automate what’s possible. Keep in mind that regulatory environment is an extremely volatile one, and there is no standard dos and don’ts that can apply to all industries. With compliance management software, businesses can finally have a more effective means and system for handling all kinds of regulatory affairs that may pertain to their business. Besides the fact that ad-hoc work and manual errors is reduced; this is also a great way of freeing up internal resources. Hiring a competent team of experienced and trained compliance management experts can be extremely expensive, and often not a viable choice for small businesses economically.
Check online for compliance management software now!