Did you know: 26,134 Clauses Can Put Entrepreneurs in Jail

Aug 28, 2023 Girish Khurana

There are 1,536 laws that govern doing business in India, of which 678 are implemented at the Union level.

[{"selector":"#anim-af4f0525-d86d-40d4-893d-0eed379fe3d6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.8708181021168055%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}]

Within these laws, there are 69,233 clauses that regulate business in India

[{"selector":"#anim-36eef998-f1b5-41c5-94eb-878a7bd9358c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

India has over 26,134 clauses for non-compliance that can send entrepreneurs to Jail.

[{"selector":"#anim-56b94643-a9e1-45e0-b162-7bcc2a845a1f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}]

Out of five business-compliant laws, nearly two can send an entrepreneur to jail

[{"selector":"#anim-79328a9c-3058-4f90-a764-c5012f9e509f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

A typical MSME with more than 150 employees faces 500-900 compliances

[{"selector":"#anim-0b0c92e5-8d6d-4a1e-9ff9-e2fa8a9f8496 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

There are 176 imprisonment clauses in the Companies Act, 2013 read with 14 related Rules.

[{"selector":"#anim-f9c5f408-5920-4205-98e0-cd6e04ecda82 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The largest number of imprisonment clauses are found in labour laws, with more than 50 such clauses per law.

[{"selector":"#anim-567e855c-0e9a-453d-96f7-f436f0760bc7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

Five states have more than 1,000 imprisonment clauses in their business laws

[{"selector":"#anim-e5e8225e-a64a-4acb-b3d1-4000406e59b4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

Data source: Jailed For Doing Business Report by Observer Research Foundation, 2022

[{"selector":"#anim-c6e3d329-a186-4bdd-8645-c808799c5276 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Images: Pexels