Statutory compliance checklist
Statutory Compliance Checklist for Businesses in 2025
In this post, we will discuss statutory compliance for companies in 2025. From labour rules to tax filing and GST requirements, we have covered the most important areas for businesses to remain compliant and avoid penalties.
Let’s look at each section in detail:
Introduction
In today’s corporate world, complying with government regulations is important. Statutory compliance refers to complying with the laws and regulations established by authorities to govern certain company activities.
These guidelines aim to protect both employers and employees. Regardless of the size or type of business, remaining compliant helps to avoid legal problems and keeps operations running smoothly.
What is Statutory Compliance?
Statutory compliance conforms to the legal norms and regulations established by national and state governments. In human resources and payroll, this means following up on all employment-related rules and guaranteeing proper employee benefits and salary management.
It is the government’s legal framework for regulating how firms run, particularly regarding employee management and financial accountability.
Regardless of size or industry, every company is expected to follow these labour regulations. Noncompliance might result in significant legal consequences and penalties.
Detailed Statutory Compliance Checklist in India
Staying compliant with laws and regulations is a must for every business. Here’s a simplified checklist of key areas to focus on in 2025:
1. Labour Laws & Employment Rules
- Adapting to hybrid work: Update your policies to reflect remote and flexible work setups.
- Fair pay and records: Ensure all employees are paid fairly and work hours are properly tracked.
- Employee rights: Review contracts and policies regularly to align with current labour laws.
2. Tax Compliance
- Going digital: Embrace digital platforms for filing taxes.
- Accuracy and timeliness: Use reliable software to avoid errors and meet deadlines.
- Stay updated: Changes in tax rules should be monitored and implemented as soon as possible.
3. Health & Safety Measures
- Safer workspaces: Follow updated health and safety rules.
- Hygiene and mental health: Implement cleaning routines and provide mental health support.
- Be ready: Set up clear emergency procedures to handle unexpected situations.
4. Data Protection & Privacy
- Secure data: Use strong systems to store and protect user and employee information.
- Get consent: Always ask for permission before collecting personal data.
- Update policies: Check if your privacy policies meet current legal requirements.
5. Compliance Best Practices
- Routine checks: Conduct regular audits to detect and correct problems earlier.
- Train your team: Educate employees on the latest rules and their role in staying compliant.
- Use compliance tools: Reliable software can be used to automate processes such as record-keeping and deadline tracking.
6. Goods and Services Tax (GST) Compliance
- New Invoice Series: From April 1, 2025, create a new invoice series for all transactional records, including tax invoices and credit notes.
- Letter of Undertaking (LUT): If you are exporting goods or services without paying GST, file the LUT for the financial year 2025-26.
- E-Invoicing Requirements: For businesses with a turnover exceeding ₹5 crore since July 2017, generating e-invoices is mandatory.
7. Corporate Governance
- Annual General Meeting (AGM): Conduct an AGM within six months from the end of the financial year or by September 30, whichever is earlier.
- Board Meetings: Conduct at least four board meetings every year, with a gap of no more than 120 days between meetings.
- Director KYC: Directors must complete their KYC verification annually to maintain accurate company records.
8. Foreign Exchange Management Act (FEMA) Compliance
- Annual Return on Foreign Liabilities and Assets (FLA Return): Submit this by July 15 if applicable.
- Form FC-GPR: Report any foreign direct investment to the Reserve Bank of India within 30 days of allotment of shares.
9. Product Certifications
- Bureau of Indian Standards (BIS) Compliance: Ensure products meet the latest BIS certifications, especially with new regulations in 2025.
10. Environmental and Safety Regulations
- Environmental Clearances: Obtain necessary environmental clearances for operations, ensuring adherence to sustainability norms.
- Machinery and Equipment Safety: Comply with the Omnibus Technical Regulation Order, 2024, for machinery and electrical equipment safety.
Consequences of Non-Compliance
Avoiding statutory compliance might have major consequences for your company. Here are the main risks you should be aware of:
- Fines and Legal Penalties
Failure to follow the law can result in significant fines and legal action, which can have a financial and operational impact on your firm. - Damage to Brand Reputation
Noncompliance might damage your company’s reputation. Once lost, customer and partner trust is difficult to rebuild. - Loss of Customer Loyalty
People prefer trustworthy businesses. If your organization is considered as irresponsible, you may lose loyal clients. - Productivity and Revenue Loss
Compliance difficulties frequently disrupt operations, resulting in delays, decreased efficiency, and loss of income. - Government Sanctions In important situations, the government may apply a penalty or even suspend your business license, resulting in operational shutdowns.
Conclusion
In 2025, every company must ensure statutory compliance. This updated compliance checklist will help you remain on top of the current standards. Compliance is about more than just avoiding penalties; it also builds trust, boosts employee morale, and promotes long-term corporate growth.
With that, we conclude this post. Please leave any questions or comments in the space below; we will gladly answer them.
