FAQ
Regulatory compliance can be broadly defined as the adherence to laws, regulations, and guidelines created by government legislations and regulatory bodies applicable to an organization based on the industry and jurisdiction in which it operates. Some of the most common laws and regulations that affect businesses include Labour Laws, Environmental Laws, Taxation Laws, Corporate Laws and sector Specific Laws- Mining, Energy, Pharmaceutical, etc
There are many reasons why regulatory compliance is important, but some of the most pressing reasons are that it ensures the safety of employees, consumers, and the environment. By adhering to regulatory compliance standards, businesses can minimize the chances of accidents, injuries, and fatalities in the workplace and protect the public from harmful products and practices.
This differs from category/type of organisation. Common taxation laws Income tax laws, GST laws, TDS, Professional tax. Common labour laws PF, ESIC.
Essential steps to creating an effective compliance program and ensuring regulatory compliance in your organization:
1. Determine which regulations are relevant to your business.
2. Identify the specific requirements you need to comply with
3. Conduct an initial internal audit
4. Establish and document compliance policies and procedures
5. Provide your employees with regular compliance training
6. Rely on experts
7. Constantly improve your regulatory compliance
It is always better to study and gain knowledge on regulatory changes from time to time. There should be dedicated team for conducting regulatory changes analysis. Also proper training should be given to team.
Proper computerised accounting & compliances records, physical records like invoices, vouchers, delivery challans etc should be maintained in order to handle regulatory audit. This will enable to handle audit/investigation smoothly.
All regulatory compliances should be followed on regular basis. Failure to comply regulatory requirements leads to penalty, interest, late fees, cancellation of various registration.
There should weekly training sessions for employees in order to ensure regular compliance, create program oversight who will see, monitor and enforce compliance program, establish two way communication at all levels, implement a monitoring and auditing systems.
Regular training sessions should be provided to employees.
Compliance management is the processing of monitoring an organization's systems, policies, and procedures to ensure all employees comply with federal, state, and local laws, governmental regulations, accreditation rules, and codes of conduct. Workplace compliance generally involves two areas: corporate compliance and regulatory compliance.