Despite a good move towards digital India and the efforts with regards to ‘Make in India’ initiative, doing business in the country is anything but straightforward. The entire process of setting up a company and getting necessary licenses, permissions, and orders, can take huge time, which often comes off as a huge loss for businesses, because schedules are hard to maintain. Also, most investors and entrepreneurs don’t have a comprehensive system to get legal updates in India, which can be a bummer considering that legal aspects, compliance and regulatory matters change every now and then.
In short, compliance burden is a real concern. Below, we are discussing more on challenges that businesses are facing with regards to statutory compliance.
The practical problems at a glance
- Lack of a proper system. While there are 58,000+ compliance needs and over 3,000 filings that may apply to different industries, there is no proper system or a list of steps that can be followed by businesses. As such, many companies have paid huge amounts in fines and penalties, often they need know much about how compliance is to be managed.
- Lack of access to updates. The regulatory environment in India is not just complicated, but also subject to numerous changes, often within the same day. There are over 2,000 government websites that actually share information on such aspects and legal updates, and is manually impossible to track everything that’s probably applicable to one business.
- Lack of expertise and resources. For small businesses, the whole idea of hiring in-house expertise for regulatory compliance doesn’t really make much sense, while for big corporate houses, one of the biggest challenges is expertise. The ad-hoc and paper-based style of compliance management is convoluted at best
Finding the right solution
There is nothing more that can work better than automation and digitization for compliance management. There are companies that have come up with software system and SaaS options, which allow clients to keep a tab on the compliance environment in real time, and all relevant updates from government websites and other sources will be updated. Companies can also have a proper document management system, and it’s easy to guess why most of the mistakes, errors and complications related to compliance management can be avoided.
Of course, the features of such software can differ, but even then, the idea of simplifying compliance will be a great advantage for companies, especially in a country like India.