8 Vital Features for 2024 Legal Entity Management Software
If your headquarters are based in Paris, London, or New York, mastering the intricacies of corporate laws across different jurisdictions, especially those thousands of miles away, can be a formidable challenge.
As the global business environment continues to evolve rapidly, companies expanding into new nations, merging with, or creating new legal entities, find their legal departments at the forefront of navigating an increasingly complex web of compliance challenges. These can range from understanding shifts in corporate governance requirements to staying abreast of changes in reporting obligations and beyond.
Legal entity management software emerges as an indispensable tool in this context, offering the means to efficiently manage and stay compliant with diverse and ever-changing legal requirements across the globe.
This article delves into what legal entity management software is, its pivotal role in addressing global compliance challenges, and the essential features that define the ideal solution for businesses aiming to thrive in the international arena.
What is entity management software?
Entity management software is a tool designed to simplify regulatory compliance for businesses with multiple entities across different regions. It acts as a single source of truth, centralizing all compliance efforts, records, and documents in one secure cloud database. This ensures that your team can quickly access up-to-date information on every entity, including corporate status and management structures.
Beyond storing data, the software automates many of the routine tasks involved in managing legal entities, freeing up your legal team to focus on more strategic activities. It streamlines the tracking of important compliance details and document management, enhancing efficiency and accuracy across your organization.
In essence, entity management software is key to maintaining a clear, unified view of your company’s compliance landscape, helping you navigate the complexities of operating in multiple jurisdictions with ease.
The 8 must-have features of legal entity management software in 2024
1. Entity Information with External Register Links
The entity information database now includes direct links to local registers, reinforcing it as your single source of truth in an easily accessible format. This upgrade ensures data consistency and accuracy by enabling direct validation of entity data against external legal registers. It simplifies the verification process, supports compliance efforts, and upholds data integrity across your organization.
2. Secure Document Management
In any comprehensive legal entity management software, secure document management is a fundamental expectation, not just a feature. While robust security measures protect sensitive information in compliance with standards like the GDPR, the true value addition comes from significantly enhancing the user experience for legal professionals.
In 2024 every legal entity management software tool should have direct in-platform viewing and editing capabilities. This advancement eliminates the cumbersome process of downloading, editing, and re-uploading documents, facilitating a smoother workflow for legal teams. Users can effortlessly make real-time modifications to documents, streamlining the editing process without compromising security.
Moreover, the software should incorporate advanced OCR (Optical Character Recognition) technology, enabling the search and retrieval of information from all documents including scanned documents. This feature is particularly useful for legal departments dealing with vast archives of paper documents, making it possible to quickly find and utilize data without manual sifting.
3. Dynamic Organisational Chart Management
To provide clear visibility into corporate structures, organisational chart management has evolved. Now, it’s not just about static diagrams but dynamic, interactive charts that offer real-time insights into shareholdings, affiliations, and the corporate hierarchy, enabling easier navigation through complex entity relationships. It is crucial to have this both on group level and starting from a single entity. The latter supports legal teams a lot in when dealing with UBO and KYC matters.
4. Visual compliance agenda
A visual compliance agenda remains crucial, offering a dashboard that illustrates the compliance status of your entities at a glance. This tool helps you identify upcoming deadlines and action items, allowing for efficient planning and task delegation across your team.
5. Data Update Campaigns
Recognizing the need for regular data verification and updates, this new feature facilitates organized data update campaigns. It leverages the software’s process management capabilities to schedule, track, and ensure the completion of data review cycles, enhancing the accuracy and reliability of your entity information.
While the software’s direct links to local registers aid in ensuring data consistency and accuracy, it’s acknowledged that not all necessary information may be available through these registers. This reality underscores the essential role of regular update campaigns, enabling a proactive approach to keeping entity data current and reliable, thereby reinforcing the integrity of your legal entity management efforts.
6. AI supported Q&A
In 2024, legal entity management software is expected to not just facilitate but actively enhance business operations and alleviate the workload on legal teams. A pivotal feature to achieve this is AI-supported Q&A, which leverages generative AI technology to provide accurate answers to legal entity-related queries. Through this integration, the software becomes a more dynamic tool, adept at navigating the complexities of legal entity management with precision and efficiency.
7. Manage entity tasks and alerts
The benefit of a dedicated platform for your entity management processes is that they all take place within that software. From messaging to task delegation and time-keeping, the ideal software for your business will allow you to manage all your entity tasks and set alerts to inform relevant people of their responsibilities and deadlines.
You simply start a new task, enter the pertinent details and the software designates the right people to perform their subtasks in a smooth and efficient workflow that gets things done when you need them done.
Everyone stays on track, and you can monitor the progress of the tasks within the software.
8. Professional legal help
The best legal entity management software utilises the talents and knowledge of legal experts in the territories in which you work. They are the people who truly understand the intricacies of the compliance landscape in their countries and who can provide you with accurate information that maintains the integrity of your entity.
There is nothing like hands-on experience with the challenges that you face remaining compliant in a variety of administrations, so look for a solution that can connect you with expertise across the world.
FAQs
How does the AI-supported Q&A feature ensure accuracy in its responses to legal entity-related queries?
Klea leverages an advanced retrieval augmented generation technique, ensuring that the AI-supported Q&A feature sources its answers exclusively from relevant and verified content
Can the dynamic organizational chart management feature integrate with existing corporate systems or databases?
In 2024, a key initiative for Klea is to enhance the interoperability of the dynamic organizational chart feature, specifically targeting seamless integration with widely-used platforms such as DocuSign. This effort is part of a broader strategy to ensure that Klea’s users can effortlessly connect their legal entity management workflows with other critical business applications. You can read more about this in our article about the Klea – Zapier integration
How does the Data Update Campaigns feature handle discrepancies between the information available through local registers and the actual data held by the company
Klea’s Data Update Campaigns feature includes a data consistency monitoring tool that automatically flags discrepancies between local register information and the company’s records. Users can then directly process and resolve these inconsistencies within the platform, ensuring data accuracy and compliance
