Compliance Failure – A Big Mistakeadmin
Be it a play school, college, or a business; there are rules and regulations. The other word is compliances. As a parent, student, entrepreneur, or an organisation, the essential term or condition is that you need to comply with compliances. There are compliance requirements for companies in India that are not negotiable. Failure to comply is the biggest mistake anyone makes, and by not adhering to the law of the land, you are taking a huge compliance risk.
So, what is the cost of compliance failure? This article is brief but an essential read for all businesses and organizations. So, read on.
Governance Risk Compliance – Legal Compliances
The Companies Act of 1956 is now replaced with the Companies Act of 2013. This has been done in order to bring the Indian company law to the same standard with the global company law. Registering a company is one of the first steps under legal compliances. Though well-informed entrepreneurs and businesses do not violate this rule, an example of compliance risk is not registering a company. If you don’t register your company, the violation attracts penalties, and you cannot provide goods or services within or outside your state as a legal business entity. According to the Companies Act of 2013, some of the other compliances along with registering your business are periodicity of the meeting of the board of directors, verification of physical premises of registered office and even a board that displays your company’s name at the given registered office address. TalentPro takes care of all such activities as a part of its statutory compliance management services.
As one of the financial compliances, within 30 days of the annual general meeting, companies have to file their financial statement through FORM AOC-4 and their annual financial statement within 60 days of their annual general meeting through FORM MGT-7. If these compliances, along with statutory, internal, external audits are not adhered to as per the statutory compliance checklist, it means sending out a special invitation to trouble. Payroll tax compliance, Corporate Social Responsibility (CSR) and other financial compliances are some of the critical financial musts which you can manage through TalentPro’s statutory compliance outsourcing services. Penalties for financial non-compliance can include cancellation of business license, imprisonment, and fines.
Human Resources and Labour Law Compliances
Human Resources and Labour Law compliance are one of the most critical areas where non-compliance will cost you dearly. This section covers terms of employment between the company and the employee. The terms include mutually agreed responsibilities of the employee, agreed compensation, hours of working, additional benefits, etc. Statutory compliance in India or in other words, non-compliance is viewed or taken very seriously. If you want to grow as a business, as one of the top-notch Labour Law consultants in India, TalentPro can help you to make sure that you are entirely safe in this regard.
Don’t forget, the mistake not to commit, non-compliance. Call us, and we will make sure that you are on the right side of the law, on the right path to success without any sudden shocks, jolts or jerks.
TalentPro keeps you safe, every time, all the time.