Why Statutory Compliance is Important in Every Business: Benefits & Risks

Statutory compliance is growing with the exponential expansion and you can monitor it by hiring a statutory compliance services provider. SOS is offering the best, accurately handled, on-time Compliance Audit .

It is not surprising that statutory compliance audit is restricted to a tax deduction from employees transmitting to the public authority. Continue reading to know the potential explanations behind carrying out statutory compliance in the business.

Why Statutory Compliance is Important in Every Business

Benefits of Statutory Compliance in Business

1. Avoiding penalties and other legal implications: Carrying out statutory compliance will help the business avoid penalties, fines, lawsuits, license cancellation, and other legal matters.2. Increased productivity: Being a compliant organization can save time and resources, permitting the organization to increase productivity and revenue.3. Work Ethics: A compliant organization shows stability, authenticity, and work ethics of itself and the employees working there. Precisely, the organization's awareness will increase.4. Employees Morale: Statutory compliance in HR will help the company to perform to achieve maximum efficiency, which will result in boosted morale of employees.5. Loyalty and Relationships: Secured personal data of employees will assist in developing robust relationships and increase employee loyalty, which is beneficial for statutory compliance in the business.

Risks of Statutory Non-Compliance in Business

If an organization fails to compliant itself then the most common risks of statutory non-compliance in businesses are:

1. Fines & penalties on the business, that can lead to financial loss2. Damage to organization's reputation and goodwill3. Risking clients' loyalty4. License Cancellation/Suspension5. Detainment of the organization's management/board members6. Breach of trust by organization's investors and stakeholders7. Business shuts down (rarely)

How to Ensure Statutory Compliance

Certain steps to follow to ensure statutory compliance:

1. Educate the service provider about your statutory compliance requirements.2. Identify the significant business areas to be complied upon.3. Segregate the compliance responsibilities as per concerned departments.4. Lead a compliance audit.5. Identify the gaps in compliance and prepare a report for future reference.6. Rectify the mistakes and gaps.

SOS- Established in 2006 with an aim is to support small and medium enterprises (SMEs) and help them grow in the market.

For Compliance Audit & Statutory Compliance in HR, Contact/Whatsapp us @981-139-6692!!