Indian Legal Environment for Foreign Companies Essay Example
Introduction
A country that has had over 5000 years of civilisation, whose culture is synthesis of many different cultures; a country which has a very complex social structure and has diversity more than any other country in the world. India. From the last decade, as the cycle of progress and prosperity reaches India again, more and more International Businesses want to either buy from or sell in or do both, in India. It is essential for a foreign company planning to enter India, to understand its culture, traditions and peoples’ mindset. Since these foreign companies will subject themselves to the Indian jurisdiction and Laws, it is also necessary to be familiar with the basic legal environment, before deciding to enter the country.
This report will serve as just a basic guide on the Indian Legal Environment, for the foreign companies. It covers some key point and risks related to the laws and policies applicable to doing business in India.
It covers the main laws linked to the three basic categories of international business, which are:
- Trade
- International licensing of technology and intellectual property
- Foreign direct investment
The Indian Judicial System
India is divided in to 28 States and 7 centrally administered regions, called "Union Territories". It has a three tier judicial structure. At the lowest level are the District Courts, heading each of the over 600 administrative districts. Second, each State has a High Court, but some states share the same High Court. (total 21 High Courts). At the apex is the Supreme Court of India situated at New Delhi. Besides the broad three tier structure there are various specialized tribunals - the more prominent ones being the Company Law Board; Monopolies and Restrictive Trade Practices Commission; Consumer Protection Forum; Debts Recovery Tribunal; Tax Tribunal.
As India had imbibed the British Judicial System, in many aspects its system is similar to the British. The Constitution of India
A country that has had over 5000 years of civilisation, whose culture is synthesis of many different cultures; a country which has a very complex social structure and has diversity more than any other country in the world. India. From the last decade, as the cycle of progress and prosperity reaches India again, more and more International Businesses want to either buy from or sell in or do both, in India. It is essential for a foreign company planning to enter India, to understand its culture, traditions and peoples’ mindset. Since these foreign companies will subject themselves to the Indian jurisdiction and Laws, it is also necessary to be familiar with the basic legal environment, before deciding to enter the country.
This report will serve as just a basic guide on the Indian Legal Environment, for the foreign companies. It covers some key point and risks related to the laws and policies applicable to doing business in India.
It covers the main laws linked to the three basic categories of international business, which are:
- Trade
- International licensing of technology and intellectual property
- Foreign direct investment
The Indian Judicial System
India is divided in to 28 States and 7 centrally administered regions, called "Union Territories". It has a three tier judicial structure. At the lowest level are the District Courts, heading each of the over 600 administrative districts. Second, each State has a High Court, but some states share the same High Court. (total 21 High Courts). At the apex is the Supreme Court of India situated at New Delhi. Besides the broad three tier structure there are various specialized tribunals - the more prominent ones being the Company Law Board; Monopolies and Restrictive Trade Practices Commission; Consumer Protection Forum; Debts Recovery Tribunal; Tax Tribunal.
As India had imbibed the British Judicial System, in many aspects its system is similar to the British. The Constitution of India