India has a hostile environment for small and medium companies. One of the main factors weighing down productivity is the heavy compliance burden that businesses struggle with daily. Consider this. India's businesses have to grapple with 58,726 compliances over 1,074 Acts and 3,000-plus possible filings annually. It is also extremely fluid, changing 2,500-plus times a year.
If that is not enough, each of them is divided under seven categories: labour, finance and taxation, industry specific, commercial, environment, health and safety. In fact, some regulations pertain to Centre, others to states.
To put it in perspective, a large pharma firm operating in six states has 140-plus applicable Acts and 6,000-plus compliances. Things aren't easier for smaller units. A chemical firm with just one factory has 72 applicable Acts, more than 1,000 compliances, averaging 10 filings monthly.
Not just the large number, what further makes it complex is absence of a central digital portal where companies can get automated updates on the changes made in the compliance regime. Companies until today have to track these changes manually, which create risks for them because inaccurate and delayed information can lead to penalties and even litigation.
To simplify the regulatory and statutory universe, human resource company Teamlease has launched an AI-based compliance content aggregator app Rulezbook to help individuals and companies get updates on changes in compliances that are relevant to them in a language that is easy to understand, all in real time. Users can also register on their website www.teamleasecompliance.com to get personalised updates in their inbox to be on top of their game.
"For India to become a $5 trillion economy, there is a need to have more formal jobs and improved productivity, for which it is crucial to create an ecosystem where it is easy for companies to keep up with the scale and complexity of India's regulatory environment," says Rituparna Chakraborty, Co-founder and Executive Vice President, Teamlease Services.
She added, "Ongoing ease-of-doing business interventions are useful but life for employers and entrepreneurs is still difficult and formalisation will be accelerated by rationalising, simplifying and digitising our compliance regime. This site is our contribution to the infrastructure of formalisation, transparency and scale for employers, particularly benefiting MSMEs, which do not have or cannot afford large in-house teams or external agencies."
The Rulezbook App (available for download from the Google and Apple stores) can be personalised on the basis of an employer, policy maker or individual's interest, geography of operations, sectors and other details. It is available free of cost to all users.
Currently, the website www.TeamLeasecompliance.com and Rulezbook App offer tracking services, but are working with various regulators and entities to offer a comprehensive workflow for processing Straight-Through-Process filing that an employer requires online.