Regulatory Compliance is not a fancy word; oh, it certainly isn’t.
You know why?
Because it most certainly ends up with you paying a fine or some levies to a statutory body or agency periodically.
For a small business, say, a nails studio setting up shop in a locale, there are two main areas that require compliance checks with the authorities:
- The general set up of the business: Registration/Incorporation of business, enrolment with tax authorities, licensing of external signage, enrolment with pension commissions and financial reporting standards authorities.
- The specific industry of the business: Permits and necessary licenses to operate from government-affiliated vocational institutes.
Sounds complicated for a small business?
Of course!
But, the plan is not to dissuade potential founders. Rather, it is to familiarise them with existing laws, standards and obligations, strengthening the core of their business practices and ensuring they run hitch-free in the long haul. Another perk is that they can now officially do business with large corporates and public institutions as these requirements feature heavily on qualifying criteria for institutional calls for tenders.
The reason for why these standards exist is for governments to control, monitor and order trades for effective commerce, reduce hazards to public safety and increase civic participation in internal development. In other words, giving you a requirement to fulfil before setting up shop helps in determining how serious you are, what extent you are willing to yield to government authority and how much risk you are willing to avoid by managing them appropriately.
Asking the right guys can save you a lot of hassle tomorrow if things go south. Sometimes, a simple search on the internet also cuts it too.
