Doing Business in India By Pradnya Desh Desh International and Business Law
Dec 23, 2015
Doing Business in India
By Pradnya DeshDesh International and Business Law
Desh International Law• Helps companies do business in the
US and abroad.• Distribution, contracts, selling abroad• Mergers and acquisitions• Foreign investment• International business transactions• International trade and customs
Indian Legal System• Long tradition civil and criminal law
in Ancient India• The modern judicial system evolved
from British control• English common law
• US and Indian legal systems have a common parent
Federal System• Constitution
• Supremacy• Separation of powers• Independent judiciary
Regulatory Environment• Domestically incorporated
subsidiaries are taxed the same as domestic companies
• Industrial licensing is limited to a few industries
• Foreign brand names are generally unrestricted
Legal environment for business• Multiplicity of procedures• Bureaucratic delays in business
registration• Viewed as excessive and
burdensome• The trend is toward simplification
FDI in India• Prohibited in some sectors• Automatic route• Government approval route
Ease of Doing Business
Ease of Doing Business• Goal to move up to the top 50 in the
World Bank’s ranking• Competitive federalism• India’s Department of Industrial
Policy circulated 98 actions points for enabling a framework for stimulating investments in manufacturing.
• States will be ranked on ease of setting up a business, registration of property, labor compliance, infrastructure availability, finance and tax issues.
Companies Act• Amended in 2014• New amendments in Parliament• Goal of improving business
climate for SMEs