The slowdown of Indian economy is a matter of concern for sure, but the government, at least in the recent years, has taken some really serious steps and initiatives to help different industries. Think of ‘Make in India’ & ‘Digital India’ for instance. However, the bigger concern for most businesses is compliance. The regulatory environment in India is complicated and convoluted, and the whole process of starting a company, right from getting the registration done to getting permissions, licenses and orders, is infuriating at best. It’s hard to have a schedule in place because the whole compliance factor is a burden. In recent years, compliance automation software solutions have changed many things for businesses, and this could be a step forward.
In this post, let’s talk of the challenges related to compliance burden, and how automation might be the apt answer in this regard.
Complicated compliance landscape
There are over 1,000 Acts in India, more than 2,500 regulatory updates, and around 58,000 compliances to be followed. It is easy to imagine how hard it is for companies to keep up with all of that. To add to that, businesses that have operations in different states and work internationally have to handle other things too, like special laws, state and local government laws and compliance needs, and so on. The sad part is most of the work is still done manually, which simply means that the work cannot be done in any way but through lengthy paperwork, and sometimes, it is just not possible to track regulatory updates. Many of the laws and compliance requirements change many times within the same year.
The start-up scene
For smaller companies, start-ups and new businesses, it is next to impossible to allocate a dedicated team to look into compliance, especially with limited resources. The major challenges include
- The manual compliance work, which involves keeping a tab on all aspects on a daily basis
- Lack of access to various updates, both legal and regulatory
- Lack of a comprehensive compliance database to refer to
- Lack of experience in handling compliance
- Limited resources for recruiting people to handle compliance
Automation is the answer to managing compliance better, and businesses have to take note and make the most of the process. The idea is to engage a software system or SaaS solution, so that the whole process of getting update sand keeping up with these updates and compliance needs get easier.