Compliance Process Outsourcing

The Great Indian Compliance Web

Complex Regulatory Regin

A mid-to-large enterprise will have Entities, Sub-entities, Factories / Corporate Offices / Regional offices etc, and each need to comply with regulations from Central Government, 28 States and 8 Union Territories and local administration alike

Accurate List of Applicable Acts and Compliances

1,000 + Acts, 52,000 + compliances and 3,000 + possible filings across various compliance categories

Increasing Penalties

(Only as an example) Reforms introduced through the Companies Act, 2013 lay down provisions for criminal proceedings and jail term for Key management Personnel as well as Directors / Promoters / Founders

Lack of Expertise

Medium and large enterprises have to deal with over a 100 Acts / Rules (split into 30k+ individual requirements), and internal teams are not expected to know all of these

Lack of Resources

Most large enterprises will have 3 or 4 dedicated resources for managing employment compliances. For MSMEs, this number is usually lesser

Management Unawareness

Despite well intentions to comply, the Key Management Personnel do not have the required understanding of compliance requirements and consequences of non-compliances

Absence of digitization of compliance tracking

Most Compliances in India are managed through a people-dependent, paper (or spreadsheet) based system. Results in lack of ownership. Accountability, timeliness, and transparency

No access to legal updates

India’s dynamic compliance and regulatory ecosystem has updates coming in every day, and as they say “Ignorance To Law Is No Excuse”