Don't face the consequences of non-compliance, always try to remain active compliant company
A country must be free from bribe for its growth and development and the only strategy to control bribe and corruption is to implement the various laws in very stringent ways. Nowadays, the government of india is very strict about the execution of laws in a corporate world. As per the recent data, a total of 6.8 lakh companies in india have been shut down. In numeric figure, a total of 36.07 % of the aggregate 18, 94,146 companies has been windup that was registered with the ministry of corporate affairs.
As the legal compliances are emerging day by day, along with that its management are also developing. In today’s scenario, task of legal compliance management must be productive in nature. Entrepreneurs must comply all the applicable laws and have to evaluate this so that anticipated negligence can be monitored. The cost of non-compliances is very heavy as compared to its obey. It can shatter the owner towards imposition of penalty by way of imprisonment along with fine.
Following consequences of non-compliance of law,
For every non-compliance made by an enterprise, they have to bear some pecuniary cost that is attached to it. Some non-compliance can be very costly for an entrepreneur.
The brand value of an entrepreneur and fame can take a deliberate hit based on the consequence of non-filing of compliance. Single non-compliance issue of a company can put it into trouble and make it difficult for a company to survive. It can lead to further loss of opportunities and contingency of an organization.
In most of the cases, when a businessman does not accomplish critical compliances in an organization then penalties in form of fine or imprisonment may occur to the key managerial person or the person who is responsible for the business activities.
Company gets close down
Sometimes government may order companies to shut down if they seem there is no compliance and it’s a serious non-compliance issue. Before issuing notice of shut down they provide proper opportunity of being heard to the business person that why they don’t have followed the rules and applicable compliance in the organization. Non-accomplishment of compliances is considered as illegal and the government can take any suitable action as per the law.
Above are the consequences that we got after having noncompliance in the organization but it could be ascertain by conducting proper audit,
To discover the non-compliance, there must be proper team of professionals who is simply devoted for internal audit and can help to make the organization fully compliant. These audits can be more time consuming or struggling in initial days but from this, an organization can become more compliant and reveal transparency of business transactions which helps to gain confidence.
Nowadays most of the compliance requirements are complex and business owners are not fully aware about the latest rules and management. It’s important for entrepreneur to have thorough understanding of corporate compliance to protect the industry in the upcoming years. Now the time has come where companies have need of realizing the importance of compliances and require to invest the capital and manpower and move towards the platform that helps to manage them effectively.
The Neusource Startup Mind is the finest business startup consultant that offers various services of compliances along with the registration like Proprietorship Firm compliances, Partnership Firm compliances, LLP compliances, Company compliances, GST compliances etc.
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