What is Compliance ? Explained in simple terms


Simply put Compliance means abiding by rules, set guidelines or norms.

Though one can relate compliance to even individual citizens, who must act in accordance to set laws for the greater benefit of the society. The term Compliance mostly and more importantly pertains to business establishments, industries, business services or products.

As the sole purpose of the existence of any business entity is Profits. The government, regulatory authorities, industry bodies, and judiciary have set Statutory Laws, Acts, Mandates, Rules, and Standards for business entities to follow such that quality of products and services delivered aren’t compromised for profits.
Apart from the quality of products, it also deals with statutory norms, acts, and laws which help the society in general by creating a harmonize financial, ecological and employment environment.

Have listed the most important compliances under statutory norms below:-

Labour Law Compliance – Statutory norms & acts which pertain to rights of labour/employees and statuary registers and remittances such as ESI, PF, etc.
Shop & Establishment Compliance – Norms, Acts, and procedures to be followed by a shop or an establishment operating with an office.
Contract Labour Compliance (CLRA) – Statutory acts which deal with contract labour employment, their rights, principal employer and contractor roles, registers and remittances.
Factory Compliance – This deals with licenses and norms to operate an industry, hazardous operations permits as well.
Industry-specific Niche Compliances – There industry-specific norms, acts, and licenses which are applicable only to specific industries which need to be followed to for continuous business operations and Industries. For example Food and Beverage, Pharmaceuticals, Cosmetics, etc.


The norms and acts should be given top’ priority by business organizations as Non-Compliance with these statutory norms and acts lead Business closure, Financial penalties, Legal notices and even Imprisonment of the Directors.

The acts and laws are dynamic and they vary across the country. There are central and states laws and acts which also vary by industry making it more complex, it’s always advisable to partner with the Best Compliance Management Firm to avoid compliances pitfalls for smooth business operations.

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