Legal compliance is anything but binary. It is a balancing act involving aspects like paying proper taxes in a timely manner, ensuring that minimum wages and safe work conditions are provided to employees, operating in an environment friendly manner, obtaining appropriate registrations and licenses; renewing them in a timely manner; and, many others.
Moreover, the Indian compliance scenario is perpetually changing with amendments to laws being announced almost every other day. For instance, the Income Tax Act underwent 88 modifications during the Financial Year 2015-16. The Service Tax Act saw another 40 changes in that same time frame. And the Companies Act of 2013 saw as many as 21 amendments with 35 critical changes. Thus among these three legislations alone, there were over 150 changes in one financial year. And these are just three of 1500+ enactments that India Inc needs to comply with. What complicates things is that because of the governance structure of India, businesses are simultaneously governed by: