(MENAFN- KNN India) Bengaluru, May 2 (KNN) Indian companies are grappled with an enormous compliance load of 69,233 compliances mandated across 1,536 laws and associated rules, according to a new research paper by TeamLease RegTech.
The regulatory compliance management firm's study revealed the staggering number of compliances that businesses in India must adhere to, stemming from 1,536 different Acts and rules.
However, the precise number of applicable compliances varies for each company based on factors such as the nature of its business, geographical presence, and employee headcount.
A major portion of the compliance burden relates to labour regulations. Labour accounts for 30.1 per cent of applicable laws, 47 per cent of compliances, 46 per cent of filings, and alarmingly, 68 per cent of provisions that carry potential imprisonment penalties.
The government had sought to streamline labour laws by enacting four labour codes, but has failed to implement them so far due to lack of support from some states.
Many economists argue the new labour codes should be a top reform priority for the new government.
The research highlighted outdated processes, with labour consultants heavily reliant on spreadsheets. "The digitalisation of compliance processes is limited to monitoring and administrating obligations. Automation can reduce compliance costs," the report stated.
TeamLease RegTech suggested using open APIs for seamless data exchange with regulators and eliminating paper-based filings through a RegTech network for "straight-through filings." This could automatically detect delays, evasions and leaks in compliance obligations.
The firm also pointed out redundancies and overlaps in existing labour laws that need simplification.
(KNN Bureau)
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