As part of our survey “India Business Climate Index” 31 percent of the companies surveyed mentioned this Management of their Indian company as the biggest brake on growth. Together with the topic of taxes and customs duties, compliance and bureaucracy are still the biggest headaches and often even frustration for our companies in India.
Especially with the introduction of the GST in the summer of 2017, uncertainty once again reached a peak. In this specific case, many details were readjusted months later and then addressed by the auditors for the first time.
In the meantime, almost all of the government's major economic reforms have been implemented. That's why we can now expect some calming down here.
Compliance is of the utmost urgency!
Despite everything, the required compliance with government regulations - not only in India - is now a requirement Sisyphean task period.
Incomplete compliance not only entails significant financial but also legal risks. Non-compliance with compliance requirements in India has often simply been tolerated by the authorities in recent decades, was common and was part of normal business practice for many Indian managing directors. But what was common practice 10 years ago has now changed significantly: thanks to digitalization and professionalization, Indian authorities have become more efficient and consistent in pursuing relevant violations and uncovering illegal business practices!
You can have India and compliance under control if you take care of it!
In addition to the regular Indian annual financial statements (usually as of March 31.03st of each year) and their review and certification by auditors as part of a so-called “Statutory Audit”, additional so-called “Internal audits“, i.e. a type of “internal audit”, carried out by qualified external experts, proven in practice.
