Did you notice the change in the Compliance paradigm in the last few years?
- Companies Act compliances got digitized with Ministry of Corporate Affairs
- Income Tax Returns got digitized and refunds became faster.
- Reporting to Reserve Bank of India for Foreign Direct Investment got digitized
- Application for Trademarks all over India got digitized
- Social security compliances like PF, ESI etc. are online
- Shops and Establishment Licenses are issued online by a lot of States
- Stamp duties are paid online by a majority of the states
- STPI / SEZ Compliances are online
- ……and the list is endless and is growing by the day.
The above digitation has definitely helped by replacing the long queues at the office of the regulators and have also reduced the “out of pocket expenses” considerably.
Did you also notice the trend in the penalties for non-compliance?
- The penalties under Companies Act, 2013 are up from a few thousand rupees to a range of Rs. 1 Lacs to 1 crore or more.
- FEMA contraventions are liable for up to 300% penalty of the amount involved.
- TDS and GST non deposits carry huge interest and penalty.
- Many non-compliances now carry imprisonment provisions for Directors and Key-Managerial Personnel and also threaten cancellation of business license
You may not have noticed this, but with digitization and e-Governance, the job profile of the regulators and government officers is fast moving from managing records to stricter scrutiny and oversight, now enabled by Computer Aided Sampling.
Departments have started sharing information and data. Some of you may have received show-cause notices from the Revenue Department for non-payment of stamp duty based on forms filed for on allotment of shares with Ministry of Corporate Affairs.
So, how do we manage Governance, Risk & Compliance (GRC) in this challenging environment?
Complinity is a leading cloud-based Governance, Risk and Compliance Software in India which helps you to manage legal and compliance risks for your Company by tracking and monitoring your compliances, manage your contracts, tracking litigation, mapping risks & controls and by establishing a world class compliance framework.
Visit www.complinity.com for more details or please feel free to reach out to compliance experts in my team at 98114 06675 or 98733 02025 to see how Complinity can help set-up a World Class Compliance Framework in your organization!
Complinity is powered by eMinds Legal, a Corporate Law Firm in India specializing in Governance, Risk & Compliance, with 70+ professionals and 200+ Clients all over India and abroad.
And if you thought that these software are expensive and are only for the large organizations, call us today or visit our website and you may be happily surprised.
Fix your roof while the sun is still shining and manage your Compliances till Infinity with Complinity!
EA mobile: 98733 02025
The Author is a Co-founder and Partner of eMinds Legal. Views expressed our personal. The Author can be followed at http://twitter.com/sumitpahwa77