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As a developing market, India is one of the biggest and fastest growing economies in the world today. According to a report, India is cited as having the potential to become the third largest economy in the world, behind only China and the USA. The “Make in India” campaign coupled with other initiatives taken by the Government, like “Skill India”, “Digital India”, etc., has generated huge interest among various domestic and overseas stake holders.
A business entity in India needs to comply with more than 60 laws. Each law in turn has compliances spread over month / quarter / year. The compliances needs to be in form of records, register and timely reporting of information in specified forms. Also India being growing economy, the laws are amended to keep up with the changing time. Non compliances attracts stringent penalties /interest / prosecution.
This needs regulatory experts to handle the above task on behalf of the entity. We assist the entities to comply with these regulatory compliances. While the above lays down the general laws governing a company in India, local laws also play a very significant role. Depending in which state the company is registered or state and city in which its operations are conducted, the company must be mindful of and observe the laws of such state/ city.
Over the past several years, the policy and procedures regulating and governing the Indian corporation have been progressively liberalised and simplified. However, there are several compliances requirements that need to be followed with, failing which there could be consequences of disqualification of directors, attracting of penal provisions and in some cases even imprisonment of the directors and key personnel. The last decade has been volatile, seeing the collapse of some of the largest companies on the global scenario, resulting in regulatory compliances being made more stringent worldwide. The process started in the developed countries have in recent times reached India as well, bringing regulatory compliance to the forefront.
The Indian accounting, tax and regulatory environment is a complex and bureaucratic one. It is obligatory for even small companies to have a statutory audit under the Companies Act, besides mandatory filing of Income Tax Returns and excess of other regulations to comply with. Further, constant amendments to the statutes and the strictures of law have made adherence to various laws in force like the Companies Act, FEMA, and judicial pronouncements, Auditing and Assurance Standards, Secretarial Standards, Accounting Standards etc. more complicated and stringent.
Companies attempting to achieve compliance on these multiple fronts are therefore faced with the difficult task of bringing together a team of experts and coordinating their services. This process generally proves to be as tiresome as it is expensive, while not always guaranteeing the elimination of compliance risks.