Managing compliance in India: Digitization is the future!
Starting a manufacturing unit in India can be a convoluted affair. There are more than 1,000 Acts, besides 58,000+ compliances and close to 3,000 filings. Let’s talk of a company will about 5,000 employees. On an average, such a company will have to deal with 135+ applicable acts, 5,500+ compliances, and more than 500 filings every year. To add to the complications, the regulatory environment is a dynamic one, and most companies don’t have access to a comprehensive compliance checklist in India. In other words, compliance is a serious matter of concern, and there is no way to escape the requirements, because regulatory bodies and departments dealing with compliance are more agile than ever.
Why automate and digitize compliance management?
Today, there are software systems that promise to simplify compliance for businesses in India. With such solutions, you can expect things like –
- A comprehensive compliance database
- Legal and regulatory updates on the go
- Simplified document management
One of the reasons why many companies fail in matters related to compliance is lack of experience and expertise. Businesses often are just not aware of the requirements, because things change every now and then, often many times within a day. Matters only get worse when these updates are not accessed in real time, and as a part of consequences, businesses end up spending huge in fines and penalties. This may also include legal implications, and under Companies Act, 2013, key personnel, including board members and directors, can be held responsible.
There are many reasons for automating and digitizing compliance, like
- Because you cannot hire in-house expertise.
- Because you are not sure of how to keep up with compliance.
- Because you don’t have access to a compliance database.
- Because your company has been getting many notices
- Because human errors lapses are apparent
- Because your company needs to maintain its reputation
- Because you want to free up your in-house resources
- Because you need a more effective system in place
- Because you need legal updates in real time
- Because you need an app/SaaS to manage compliance on the go
As you may have guessed by now, automation of compliance may seem like a choice now, but it’s a huge leap ahead in the future. Don’t step back from checking the software options, features on offer, and the pricing before selecting one. ‘Pay as you go’ option is the ideal way of avoiding a long-term commitment.