In general, compliance burden is a real concern for business practices in India. Despite a good move towards digital India and the efforts with regards to ‘Make in India’ plan, performing business in the country is anything but straight forward.

Entire business activities 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. Below, we are discussing more on challenges that businesses are facing with regards to statutory compliance.

The practical challenges briefly
• Many companies have paid huge amounts in fines and penalties, often they need know much about how compliance and compliance audit is to be managed. 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.
• Lack of access to updates. Regulatory compliance environment in India is not just complicated, but also subject to numerous changes, often within the same day. For small businesses, the whole idea of hiring in-house expertise for regulatory compliance does not really make much sense, while for big corporate houses, one of the biggest challenges is expertise.
• Lack of expertise and resources. The ad-hoc and paper-based style of compliance management is convoluted at best. There are over 2,000 government websites that share information on such aspects and legal updates and is manually impossible to track everything that is probably applicable to one business.
Also, most investors and entrepreneurs do not 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.

Get the right solution for this issue
There is nothing more that can work better than computerization and digitization for compliance management. 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.
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.

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.

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