• United States
• United Kingdom
• China
• Singapore
• Germany
• Japan
• Israel
• Netherlands
• France
• South Korea
• Canada
• Australia
• Switzerland
• Italy
• Spain
• Ireland
• Sweden
• South Africa
• Malaysia
• Brazil
• Saudi Arabia
• Belgium
• Denmark
• Vietnam
• Europe

General FAQs for All Foreign Investors

1. What are the primary routes for Foreign Direct Investment (FDI) in India? 

There are two main routes:

• Automatic Route: For most sectors, foreign investors do not need prior approval from the government or the Reserve Bank of India (RBI). You can directly invest, subject to compliance with FDI regulations.
• Government Route: For certain sensitive sectors (e.g., defense, broadcasting, print media) or for investments from specific countries (e.g., China), prior approval from the concerned government ministry is mandatory.

2. What are the main types of legal business structures in India? 

The most common structures for foreign investors are:

• Private Limited Company: A distinct legal entity with limited liability for its owners (shareholders). This is the most popular and flexible structure for a foreign subsidiary.
• Limited Liability Partnership (LLP): A hybrid structure that combines the limited liability of a company with the flexibility of a partnership.
• Branch Office / Liaison Office: Suitable for limited purposes, such as representing the parent company or conducting market research. They are not allowed to conduct mainstream business activities.

3. What is the role of the Reserve Bank of India (RBI) for foreign companies? 

The RBI, through the Foreign Exchange Management Act (FEMA), governs all cross-border transactions. This includes the inflow of foreign investment, the outflow of funds (like dividends or royalties), and reporting requirements. All FDI must be reported to the RBI within a stipulated timeframe.

FAQs for Companies from the United States

1.What are the capital requirements for setting up a US subsidiary in India?

India’s company law does not mandate a minimum capital requirement for a private limited company. You can start with a nominal amount. However, the capital should be sufficient to meet initial business expenses and demonstrate financial viability.

2.How is intellectual property developed in an Indian subsidiary owned by a US parent company treated?

IP ownership should be clearly defined in an Inter-Company Agreement. Typically, the US parent company retains ownership of all IP developed by the Indian subsidiary, which acts as a service provider. This must be supported by robust employment contracts in India.

3. Are US GAAP financial statements acceptable for compliance in India?

No. For statutory filing in India, financial statements must be prepared according to Indian Accounting Standards (Ind AS). While you can maintain books in US GAAP for parent company reporting, the official filings must be in Ind AS.

4. What is the taxability of a US employee working temporarily in India?

If a US employee stays in India for more than 182 days in a financial year, they are generally considered a resident for tax purposes and their global income may become taxable in India. The US-India tax treaty provides some relief, but careful planning is required to avoid creating a permanent establishment for the US company.

5.How can we enforce a US court judgment in India?

The US is not a “reciprocating territory.” Therefore, a US court judgment cannot be directly executed. A new civil suit must be filed in an Indian court, where the US judgment will be treated as strong evidence. This makes international arbitration a much more effective dispute resolution mechanism.

FAQs for Companies from the United Kingdom

1. How does the shared Common Law system practically benefit a UK business in India? It means that legal principles regarding contracts, negligence, and corporate duties are fundamentally similar. This leads to more predictable legal interpretations, easier contract negotiations, and a smoother working relationship between UK and Indian legal counsel.
2. What are the key provisions of the UK-India Double Taxation Avoidance Agreement (DTAA)? The DTAA provides for lower withholding tax rates on dividends, interest, and royalties. It also defines what constitutes a “Permanent Establishment” (PE), which is crucial for determining when a UK company’s business profits become taxable in India.
3. Are UK professional qualifications (e.g., ACA, Solicitor) recognized in India? While respected, they are not a substitute for Indian professional qualifications for statutory purposes. For instance, only a member of the Institute of Chartered Accountants of India can be a statutory auditor, and only an advocate enrolled in an Indian Bar Council can appear in Indian courts.
4. How can a UK company leverage the post-Brexit focus on India? UK companies can actively participate in sectors promoted under the developing UK-India Free Trade Agreement (FTA), such as financial services, technology, and advanced manufacturing. The FTA aims to reduce tariffs and non-tariff barriers, creating significant competitive advantages.
5. What are the key differences in corporate governance between the UK and India? While both have robust governance codes, India’s Companies Act, 2013, mandates specific requirements like mandatory Corporate Social Responsibility (CSR) spending for eligible companies and has stricter rules on related party transactions, which UK directors must be aware of.

FAQs for Companies from China

1. What is Press Note 3 and how does it affect our investment? Press Note 3 (2020) mandates that any FDI from a country sharing a land border with India, including China, requires prior approval from the Government of India. This means you cannot use the automatic route and must undergo a screening process for any investment, new or additional.
2. What are the biggest challenges in a China-India Joint Venture? Challenges often include differences in business culture, decision-making speed, and communication styles. Legally, the biggest challenges are defining clear control and management rights, protecting technology and IP, and having a robust deadlock resolution mechanism in the JV agreement.
3. How can we protect our brand and trademark from counterfeits in India? The first and most crucial step is to register your trademark in India with the Indian Trademarks Registry. Following this, you can actively monitor the market, send legal notices to infringers, and file civil or criminal lawsuits to stop counterfeit activities.
4. Is it better to use Hong Kong or Singapore for arbitration in our contracts? Both are excellent, neutral arbitration seats. Singapore (SIAC) is extremely popular for India-related disputes. Hong Kong (HKIAC) is also a world-class option, particularly familiar to Chinese businesses. The choice can depend on the specifics of the transaction and party preferences.
5. What are the data localization requirements in India for Chinese tech companies? India has various data localization requirements. For instance, payment system data must be stored exclusively in India. The new Digital Personal Data Protection Act (DPDPA) has its own rules for cross-border data transfers. Chinese tech companies must have a clear data map and compliance strategy.

FAQs for Companies from Singapore

1. What is the “Principal Purpose Test” (PPT) in the India-Singapore tax treaty? The PPT is an anti-abuse rule that allows tax authorities to deny treaty benefits (like lower taxes on capital gains or dividends) if the principal purpose of an arrangement was to obtain those tax benefits, rather than for a genuine business reason. This makes having real commercial “substance” in your Singapore entity crucial.
2. How does a Singapore Variable Capital Company (VCC) structure work for investing in India? The VCC is a flexible fund structure in Singapore. It can be set up as a standalone fund or an umbrella structure with multiple sub-funds, allowing fund managers to pool capital and invest in Indian assets while ring-fencing the assets and liabilities of each sub-fund.
3. What are the advantages of using SIAC (Singapore International Arbitration Centre) for India contracts? SIAC is seen as a highly efficient, neutral, and world-class institution. Its rules are modern, its administration is excellent, and Singapore’s judiciary is strongly pro-arbitration and pro-enforcement. This provides a high degree of legal certainty for resolving disputes.
4. Can we list our Indian subsidiary on the Singapore Exchange (SGX)? While direct listing of an Indian company on a foreign exchange has been a topic of discussion, the current framework is complex. A more common route is for the Singaporean parent company of the Indian subsidiary to be listed on the SGX.
5. What are the reporting requirements for an investment from Singapore into India? Any FDI received must be reported to the RBI through an authorized dealer bank via Form FC-GPR within 30 days. Additionally, an annual return on Foreign Liabilities and Assets (FLA) must be filed by the Indian company.

FAQs for Companies from Germany

1. What are the key legal factors when selecting a site for a manufacturing plant in India? Key factors include state-level industrial policies and incentives, land zoning laws (it must be zoned for industrial use), availability of clear land title, environmental regulations and clearance requirements, and labor laws prevalent in that state.
2. How is product liability handled in India for German industrial goods? India has a robust Consumer Protection Act, which includes product liability. A manufacturer can be held liable for defects in goods that cause harm. It is crucial to have clear disclaimers, proper user manuals, and adequate insurance coverage.
3. Can we enforce German technical standards (e.g., DIN) in our Indian supply chain? Yes, you can (and should) enforce your own technical and quality standards contractually. Your supply and manufacturing agreements should explicitly state that adherence to specific DIN standards is a material obligation of the contract.
4. What are the restrictions on employing foreign nationals (German expatriates) in India? Foreign nationals must obtain a valid Employment Visa and register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival. The company must certify that the expatriate has skills not readily available in the Indian workforce.
5. How does the India-Germany Social Security Agreement benefit our employees? This agreement allows employees on temporary assignment (up to 5 years) to be exempt from making social security contributions in the host country (e.g., a German employee in India can be exempt from Indian Provident Fund contributions) provided they continue to contribute to their home country’s system.

FAQs for Companies from Japan

1. What is the role of a Memorandum of Understanding (MoU) in a Japanese-Indian JV? In India, an MoU is typically a non-binding document outlining the preliminary understanding between parties. It is a crucial first step, but it must be followed by a detailed, binding Joint Venture Agreement. It’s important not to begin significant operations based solely on an MoU.
2. How are royalty payments for technology from a Japanese parent company taxed in India? Royalty payments are subject to withholding tax in India. The India-Japan tax treaty provides for a beneficial withholding tax rate, which is typically 10%. This is lower than the rate under India’s domestic tax law.
3. What is the best way to manage the long-term relationship in a JV? The best way is to have a very detailed shareholders’ agreement that covers governance (board composition, veto rights), future funding obligations, dividend policy, exit strategies (buy-sell options), and a clear dispute resolution mechanism.
4. Are there government-backed industrial parks dedicated to Japanese companies? Yes, India has established several “Japanese Industrial Townships” (JITs) in states like Rajasthan, Gujarat, and Andhra Pradesh. These townships offer high-quality infrastructure, plug-and-play facilities, and streamlined administrative support for Japanese manufacturing companies.
5. How do we handle due diligence on a potential Indian partner? Due diligence should be comprehensive. Legal due diligence involves checking company records, litigation history, property titles, and regulatory compliance. Financial due diligence assesses the partner’s financial health. It’s also crucial to conduct “reputational” due diligence.

FAQs for Companies from Israel

1. What is the difference between patenting our technology and protecting it as a trade secret in India? A patent provides a statutory monopoly for 20 years in exchange for public disclosure of the invention. A trade secret is protected by keeping the information confidential (e.g., through NDAs and internal security). Trade secrets have no expiry date but offer no protection if the information is independently discovered or leaked.
2. Can we use an Israeli law firm for our Indian legal work? For advisory work, yes. However, for any filings with Indian authorities (like company incorporation or trademark registration) or for appearing in Indian courts, you must engage an Indian law firm and qualified Indian lawyers.
3. What are the offset obligations in Indian defense contracts? For large defense contracts, the foreign vendor (e.g., an Israeli defense company) is typically required to “offset” at least 30% of the contract value by investing it back into India’s defense and aerospace sector, often through purchasing Indian goods or investing in a local JV.
4. How is revenue from a SaaS product sold to Indian customers taxed? This is a complex area. Revenue could be characterized as a royalty or a business profit. The tax treatment depends on the India-Israel tax treaty and whether the Israeli company has a Permanent Establishment (PE) in India. A 2% equalization levy may also apply to online sales.
5. What are the regulations for bringing agricultural technology (e.g., new seeds) into India? This is highly regulated. New plant varieties must be registered under the Protection of Plant Varieties and Farmers’ Rights Act. Genetically modified seeds require extensive approvals from the Genetic Engineering Appraisal Committee (GEAC). Import of any agricultural inputs requires permits and quarantine checks.

FAQs for Companies from the Netherlands

1. What is the impact of the Multilateral Instrument (MLI) on the India-Netherlands tax treaty? The MLI has updated many tax treaties to prevent tax avoidance. For the India-Netherlands treaty, it introduced the “Principal Purpose Test” (PPT), which means treaty benefits will be denied if the main purpose of a transaction is to obtain a tax benefit, reinforcing the need for commercial substance.
2. How do we structure a tax-efficient exit from an Indian investment via our Dutch holding company? A tax-efficient exit requires careful planning from the very beginning. The structure must comply with the DTAA and GAAR. The exit could be through a share sale to another non-resident (which may not be taxable in India, subject to conditions) or a sale to an Indian resident (which is generally taxable in India).
3. What are the rules for providing loans from a Dutch parent to an Indian subsidiary? The loan must comply with India’s External Commercial Borrowing (ECB) framework, which has rules on eligible lenders, borrowers, interest rate ceilings, and end-use of funds. The interest rate must also be at arm’s length to comply with transfer pricing regulations.
4. Is it better to have a Dutch holding company or invest directly? A Dutch holding company can offer tax advantages and serve as a consolidated hub for multiple international investments. However, it adds a layer of complexity and cost, and requires real substance to be effective. Direct investment is simpler but may be less tax-efficient for repatriation. The best choice depends on the scale and nature of the investment.
5. What are the key clauses to include in an inter-company service agreement? The agreement must clearly define the scope of services, the pricing methodology (which must be at arm’s length), IP ownership, confidentiality obligations, liability limitations, and the governing law and dispute resolution mechanism.

FAQs for Companies from France

1. What are the specific FDI rules for the French luxury retail sector in India? FDI in “single-brand retail” is permitted up to 100%. For FDI above 51%, there is a 30% local sourcing requirement. This means 30% of the value of goods purchased must be sourced from India, which can be a significant operational consideration for luxury brands.
2. How does the India-France tax treaty handle taxation of technical services? The treaty has a specific article for “Fees for Technical Services” (FTS), which allows India to tax these payments at a withholding rate of 10%. This is important for French engineering, design, and technology companies providing services to Indian clients.
3. What is the process for enforcing an ICC (Paris) arbitral award in India? An award from the ICC with its seat in Paris is a foreign award under the New York Convention. To enforce it, a petition must be filed in the relevant Indian High Court. The court will enforce it like its own decree unless the opposing party can prove one of the very limited grounds for refusal (e.g., public policy violation).
4. Are there opportunities for French companies in India’s smart cities and urban development projects? Yes, immense opportunities exist. French companies specializing in urban planning, sustainable mobility, water management, and energy efficiency are well-positioned to participate in India’s “Smart Cities Mission” through consulting contracts or public-private partnerships (PPPs).
5. How do we protect our “Geographical Indication” (GI) like Champagne or Bordeaux in India? India has a strong GI law. Foreign GIs can be protected in India. You would need to file an application with the Geographical Indication Registry in Chennai. Protection in India would prevent others from using your GI name on products not from that region.

FAQs for Companies from South Korea

1. What is the “Production Linked Incentive” (PLI) scheme and how can our electronics company benefit? The PLI scheme is a flagship Indian government initiative that provides financial incentives to companies on incremental sales of products manufactured in India. It is designed to boost domestic manufacturing and is highly relevant for Korean electronics, automotive, and semiconductor companies.
2. How do we manage supply chain contracts with hundreds of vendors in India? The key is to have a standardized but robust template for your vendor/supplier agreements. This template should cover quality standards, delivery timelines, payment terms, IP confidentiality, and clear termination clauses. For critical suppliers, more detailed, negotiated agreements are necessary.
3. What are the anti-dumping duties and how do they affect imports from Korea? India can impose anti-dumping duties on goods imported from any country, including Korea, if it determines that the goods are being “dumped” (sold below their normal value) and causing injury to the domestic industry. This is a risk for certain products like chemicals, steel, and electronics components.
4. Is it better to establish a manufacturing JV or a wholly-owned subsidiary? A wholly-owned subsidiary gives you full control over technology, quality, and operations. A JV provides local market knowledge, faster access to distribution networks, and can help navigate local relationships. For Korean conglomerates with strong operational expertise, a subsidiary is often preferred, but a JV can be strategic for new market segments.
5. How do we handle consumer complaints and warranty claims in India? India has a strong Consumer Protection Act. It’s essential to have a clear, transparent, and easily accessible customer service and warranty claim process. A dedicated service network and clear warranty terms are crucial for maintaining brand reputation and avoiding consumer disputes.

FAQs for Companies from Canada

1. What legal structures are used by Canadian pension funds for infrastructure investments in India? They often invest through specialized infrastructure investment trusts (InvITs) or by acquiring stakes in Indian infrastructure companies. They may also set up an Indian subsidiary to act as a holding company for various project investments. The structure is designed for long-term holding and stable returns.
2. How does the Canada-India tax treaty impact our investments? The treaty provides for lower withholding tax rates on dividends and interest, which is crucial for institutional investors. It also contains provisions to prevent tax evasion and allows for the exchange of tax information between the two countries.
3. What is a Power Purchase Agreement (PPA) and why is it critical for renewable energy projects? A PPA is a long-term contract between an energy producer (like a solar or wind farm) and a buyer (usually a state-owned utility). It is the most critical document for a project as it guarantees the sale of power at a pre-determined tariff for a long period (e.g., 25 years), which is essential for securing project financing.
4. Are there any restrictions on Canadian companies investing in Indian agriculture? Direct investment in primary agricultural cultivation is prohibited. However, 100% FDI is allowed in related sectors like food processing, agri-infrastructure (like warehouses and cold chains), and development of agricultural inputs like seeds and bio-tech, which are areas of interest for Canadian firms.
5. How do we conduct due diligence on an Indian infrastructure asset before investing? Due diligence is multi-layered. It includes: Legal DD (land titles, permits, contracts, litigation), Technical DD (asset quality, operational efficiency), Financial DD (historical and projected cash flows), and Regulatory DD (compliance with all sector-specific regulations).

FAQs for Companies from Australia

1. How does the Australia-India ECTA impact the services sector? The ECTA provides improved market access for Australian service providers in sectors like higher education, business services, and IT. It creates a more transparent and predictable regulatory environment, making it easier for Australian professionals and firms to operate in India.
2. What are the key regulations for the mining sector in India? The sector is governed by the Mines and Minerals (Development and Regulation) Act. The process involves obtaining a prospecting license or a mining lease, which are now granted through auctions. It requires significant environmental clearances and compliance with mine safety laws.
3. Can an Australian university set up a standalone campus in India? Yes. Recent regulations by the University Grants Commission (UGC) now permit top-ranked foreign universities to establish and operate campuses in India, with autonomy over admissions, faculty, and fee structure. This is a major new opportunity for the Australian education sector.
4. How can we enforce an Australian arbitral award in India? Australia is a signatory to the New York Convention. An award from a recognized Australian arbitration institution (like ACICA) is considered a foreign award and is enforceable in Indian High Courts, making arbitration a reliable dispute resolution tool.
5. What are the main considerations for an Australian agritech company in India? Key considerations include protecting IP for innovative technology, navigating state-level agricultural laws (as agriculture is a state subject), conducting pilot projects to prove efficacy in local conditions, and building strong distribution channels to reach farmers.

FAQs for Companies from Switzerland

1. What is Section 3(d) of the Indian Patents Act and why is it important for Swiss pharma companies? Section 3(d) prevents the “evergreening” of patents. It states that a new form of a known substance cannot be patented unless it shows significantly enhanced efficacy. This makes it challenging to get secondary patents on minor modifications of existing drugs and is a critical point of strategy for pharma R&D.
2. How can a Swiss wealth management firm operate in India? It would need to register with the Securities and Exchange Board of India (SEBI) as a Portfolio Manager or an Investment Advisor, depending on the nature of its services. This involves meeting minimum net worth requirements, having qualified personnel, and adhering to strict codes of conduct.
3. Are there specific incentives for high-tech manufacturing in India? Yes, India’s “Make in India” initiative and Production Linked Incentive (PLI) schemes offer significant financial incentives for domestic manufacturing in high-tech sectors like electronics, medical devices, and specialty steel, which are relevant for Swiss companies.
4. How do we ensure the confidentiality of our proprietary formulas or processes in India? This is managed through a combination of legal and practical measures. Legally, use strong Non-Disclosure Agreements (NDAs) and confidentiality clauses in all employee and vendor contracts. Practically, implement strict internal access controls and data security protocols.
5. What is the tax rate on dividends paid from an Indian subsidiary to a Swiss parent company? Under the India-Switzerland tax treaty, the withholding tax rate on dividends is generally capped at 10%, provided the Swiss company holds at least 10% of the capital of the Indian company. This is more favorable than the rate under domestic law.

FAQs for Companies from Italy

1. How can we protect our unique industrial designs for products like furniture or machinery in India? You must register the aesthetic features (shape, pattern, configuration) of your product under the Designs Act, 2000. This gives you a monopoly over the design for up to 15 years and is the most effective tool to combat copycat products.
2. What are the key legal aspects of a franchisee agreement in India? A franchisee agreement should clearly define the territory, the term of the agreement, franchisee fees and royalties, IP usage rights (trademarks), training and support obligations, quality control standards, and termination clauses. India does not have a specific franchise law, so everything is governed by the contract.
3. What are the challenges for an Italian automotive component manufacturer in India? The main challenges are meeting the price and quality expectations of large Indian and international OEMs, managing a just-in-time supply chain, and complying with evolving automotive standards (like emission norms). Strong contracts with OEMs are essential.
4. Can we use Italian law as the governing law for a contract with an Indian company? You can, but it is generally not advisable. If a dispute arises and needs to be settled in an Indian court, the court would have to apply Italian law, which is a complex and costly process. It is usually better to choose either Indian law or a neutral law like English law (for arbitration).
5. How do we navigate customs and import duties for Italian luxury goods? India has high import duties on many luxury goods. It’s crucial to correctly classify your product under the HSN (Harmonized System of Nomenclature) code to pay the correct tariff. Using a reliable customs house agent is essential for smooth clearance.

FAQs for Companies from Spain

1. What is an EPC Contract and why is it important for infrastructure projects? An EPC (Engineering, Procurement, and Construction) contract is a turnkey contract where the contractor is responsible for the entire project from design to completion. For a Spanish infrastructure company, having a watertight EPC contract is crucial for defining scope, allocating risk, and ensuring timely project delivery.
2. How is land for a renewable energy project typically acquired in India? Land is a state subject, so the process varies. It usually involves either outright purchase from private landowners (which can be complex due to fragmented ownership) or long-term leases from state governments or private owners. Thorough land title due diligence is the most critical step.
3. What are the FDI rules for a Spanish retail brand in India? For a single-brand retailer (like Zara), 100% FDI is allowed, subject to a 30% local sourcing requirement. For multi-brand retail, FDI is highly restricted and subject to many conditions, making it a difficult sector to enter directly.
4. Are there specific opportunities in India’s water management sector for Spanish companies? Yes, there are significant opportunities. Projects under the National Mission for Clean Ganga and other urban water supply and wastewater treatment projects offer avenues for Spanish companies with expertise in water technology and management to participate through government tenders and PPPs.
5. How does the India-Spain tax treaty address taxation of construction projects? The treaty has a specific clause defining a “Permanent Establishment” (PE) for construction or installation projects. A project creates a PE (and thus becomes taxable in India) only if it lasts for more than six months, providing a clear threshold for Spanish construction companies.

FAQs for Companies from Ireland

1. How can we structure an Employee Stock Option Plan (ESOP) for our Indian employees? An ESOP for an Indian subsidiary can be structured where employees are granted options of the Irish parent company. This requires compliance with Indian foreign exchange (FEMA) regulations, which have specific rules for such plans. It’s a great tool for retaining tech talent.
2. What are the key regulations for a pharmaceutical company conducting clinical trials in India? Clinical trials are strictly regulated by the Central Drugs Standard Control Organization (CDSCO) under the New Drugs and Clinical Trials Rules, 2019. This includes mandatory registration of the trial, ethics committee approvals, and adherence to Good Clinical Practice (GCP) guidelines.
3. How can we protect our software source code in India? Source code is protected under copyright law as a “literary work.” You should include clear copyright notices in the code. It is also advisable to register the copyright for key software products with the Indian Copyright Office for stronger proof of ownership.
4. What is the “Equalisation Levy” and does it apply to our online services? The Equalisation Levy is a tax on the revenue of foreign e-commerce operators from providing online goods or services to Indian residents. It is currently 2% on the revenue from online sales. An Irish tech company selling services directly to Indian customers would likely be subject to this levy.
5. What is the legal process for acquiring a small Indian tech startup? The process involves signing a term sheet, conducting thorough due diligence (legal, financial, tech), negotiating and signing a definitive Share Purchase Agreement (SPA), and then completing all post-closing formalities, including reporting the transaction to the RBI.

FAQs for Companies from Sweden

1. What does India’s Corporate Social Responsibility (CSR) law require? Companies that meet certain thresholds of turnover, net worth, or profit must spend at least 2% of their average net profits of the preceding three years on specified CSR activities (like education, healthcare, environment). This is a mandatory legal requirement.
2. How can we enforce our global code of conduct in our Indian subsidiary? Your global code of conduct can be incorporated into the Indian entity’s employment contracts and official company policies. This makes adherence a contractual obligation for all employees. It must be aligned with Indian labor laws.
3. What are the key legal issues for an automotive components supplier in India? Key issues include negotiating long-term supply agreements with large OEMs, managing product liability risks, ensuring compliance with automotive industry standards (AIS), and protecting process-related intellectual property.
4. Can a Swedish company invest in the Indian forestry sector? FDI in the forestry sector is a sensitive area. While investment in wood-based industries and processing is permitted, direct ownership or management of forests is highly restricted. Investments are typically structured as joint ventures for wood processing or plantations on private land.
5. How do we handle a brand infringement case in India? If another company is using your trademark, the first step is usually to send a legal “cease and desist” notice. If this is ignored, you can file a lawsuit for trademark infringement in a commercial court, seeking an injunction to stop the infringing activity and claim damages.

FAQs for Companies from South Africa

1. What is the role of the Competition Commission of India (CCI)? The CCI is India’s antitrust regulator. It reviews large mergers and acquisitions to ensure they don’t harm competition and investigates anti-competitive practices like cartels and abuse of a dominant market position. South African companies involved in large M&A deals in India will need CCI approval.
2. What are the regulations for a South African insurance company to operate in India? The insurance sector is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Foreign investment is capped at 74% in an Indian insurance company, meaning a joint venture with an Indian partner is mandatory. A license from IRDAI is required.
3. How does India’s law on Black Economic Empowerment (BEE) equivalents work? India does not have a BEE equivalent. Its affirmative action policies are focused on reservations in government jobs and education for historically disadvantaged castes. In the corporate world, the main social policy is mandatory CSR spending, which is based on profitability, not ownership.
4. Can we use our South African brewing technology to set up a brewery in India? Yes, you can. However, the production and sale of alcohol is a state subject in India, meaning laws and licensing requirements vary drastically from state to state. You would need to obtain a specific state license, which can be a complex process.
5. What is the process for repatriating investment capital from India back to South Africa? Capital can be repatriated subject to compliance with FEMA regulations. The repatriation must be reported to the RBI through an authorized dealer bank. It’s crucial to have all documentation in order, including proof of the initial investment and payment of all applicable taxes (like capital gains tax).

FAQs for Companies from Malaysia

1.What are the key clauses in an EPC (Engineering, Procurement, Construction) contract in India?

Key clauses include a clear definition of the scope of work, performance guarantees, price and payment schedule, liability limitations, force majeure provisions, and a multi-tiered dispute resolution mechanism (e.g., mediation followed by arbitration).

2.How can a Malaysian company participate in India’s highway development projects?

Malaysian companies can participate by bidding for projects tendered by the National Highways Authority of India (NHAI). Projects are often structured as Public-Private Partnerships (PPPs) on a Build-Operate-Transfer (BOT) or Hybrid Annuity Model (HAM) basis.

3.Are there specific regulations for palm oil imports and processing in India?

Yes, palm oil is a major import commodity. The import is subject to customs duties and quality standards set by the Food Safety and Standards Authority of India (FSSAI). Setting up a processing/refining plant requires industrial and environmental licenses.

4.How does the ASEAN-India Services Agreement impact Malaysian professional firms?

The agreement aims to liberalize trade in services, but the actual impact on regulated professions like law or accounting is limited, as these are governed by domestic professional bodies. However, it facilitates easier access for consultants and professionals in other business service sectors.

5.What are the key considerations for a Malaysian real estate developer in India?

The key considerations are complying with the Real Estate (Regulation and Development) Act, 2010 (RERA), which mandates project registration and regulates sales. Other critical factors are conducting thorough land title due diligence and navigating state-level building by-laws.

FAQs for Companies from Brazil

1. What are the regulations for importing and selling processed food products in India? All food products must comply with the regulations of the Food Safety and Standards Authority of India (FSSAI). This includes licensing for the importer, adherence to packaging and labeling rules (which require specific declarations in English), and product testing.
2. Can a Brazilian company invest in an Indian IT services company? Yes, 100% FDI is permitted under the automatic route in the IT and ITeS sector. This is a very straightforward and popular area for foreign investment.
3. How is pharmaceutical data exclusivity treated in India? India does not provide a separate regime for data exclusivity for pharmaceuticals. The data submitted for regulatory approval of a new drug is not statutorily protected from being relied upon by the drug regulator for approving subsequent generic versions. This is a key difference from many Western jurisdictions.
4. What are the main legal issues in an agri-commodity supply chain contract? Key issues are defining quality specifications, logistics and delivery terms, risk of loss during transit, payment mechanisms (often through letters of credit), and having a clear dispute resolution clause, preferably for international arbitration for cross-border trade.
5. How does the India-Brazil tax treaty help businesses? The treaty prevents double taxation and provides for reduced withholding tax rates on dividends, interest, and royalties. It also includes provisions for the exchange of tax information, which helps in ensuring transparency and compliance for companies operating in both countries.

FAQs for Companies from Saudi Arabia

1. What is an Alternative Investment Fund (AIF) and how can Saudi funds use it to invest in India? An AIF is a privately pooled investment vehicle registered in India. Saudi sovereign funds or large institutional investors can invest in multiple Indian assets (startups, infrastructure, real estate) through a single, professionally managed AIF structure. This simplifies management and compliance.
2. What are the key legal documents in a project finance deal in India? The key documents are the Loan Agreement, the Inter-creditor Agreement (if multiple lenders), the Security Documents (e.g., mortgage deeds, pledge agreements), and the Sponsor Support Agreement. For infrastructure projects, the Concession Agreement with the government authority is also critical.
3. How does the Bilateral Investment Promotion and Protection Agreement (BIPA) with Saudi Arabia protect our investment? The BIPA provides key protections, including a guarantee of Fair and Equitable Treatment (FET), protection against expropriation without adequate compensation, and the right to repatriate investments and returns. It provides investors with the right to initiate international arbitration directly against the host state if these protections are breached.
4. What are the regulations for setting up a large oil refinery in India? This is a highly regulated process. It requires an Industrial License, extensive environmental impact assessments and clearances from the Ministry of Environment, Forest and Climate Change, and compliance with numerous safety regulations from bodies like the Petroleum and Explosives Safety Organisation (PESO).
5. Can a Saudi company acquire a majority stake in an Indian tech startup? Yes, 100% FDI is allowed in the tech sector. A Saudi company or fund can acquire a majority stake or even the entire company. The transaction would need to be reported to the RBI, and the valuation must be done according to internationally accepted pricing guidelines.

FAQs for Companies from Belgium

1. What are the key legal aspects of warehousing and logistics contracts in India? Key aspects include defining the scope of services, liability for loss or damage to goods, compliance with warehousing and transportation laws, insurance requirements, and payment terms. It’s also important to ensure the logistics partner has all necessary licenses.
2. How can a Belgian company participate in India’s port development sector? They can participate through Public-Private Partnership (PPP) projects, where private companies bid for concessions to develop and operate terminals or berths in major government-owned ports. This is a capital-intensive but high-opportunity area.
3. What are the import regulations for Belgian diamonds and jewelry? The import of rough diamonds is facilitated through designated zones, while polished diamonds and jewelry are subject to customs duties. The industry is also subject to strict regulations to prevent money laundering, and compliance with Kimberley Process Certification Scheme (KPCS) is mandatory for rough diamonds.
4. Are there specific incentives for R&D activities in India? Yes, the Indian government provides tax incentives for R&D expenditure. Companies can claim a weighted tax deduction on certain types of in-house R&D expenses, which can significantly reduce their corporate tax liability.
5. How do we handle a product recall for our goods in India? While India does not have a single, overarching product recall law, several sector-specific laws (e.g., for food, drugs, automobiles) have recall provisions. It is crucial to have a proactive internal recall policy and to comply with the directives of the relevant regulatory authority (like FSSAI or CDSCO).

FAQs for Companies from Denmark

1. What are the key terms in a Power Purchase Agreement (PPA) for a wind farm in India? The most critical terms are the tariff (price of electricity), the term of the agreement (usually 25 years), the “must-run” status of the project, payment security mechanisms to guard against default by the utility, and force majeure clauses.
2. How can we protect the unique design of our Danish furniture or lifestyle products in India? You must register the aesthetic design under the Designs Act, 2000. This provides a 10-year monopoly (extendable by 5 years) against anyone copying the shape, pattern, or configuration of your product. This is separate from and complementary to trademark protection for your brand name.
3. What are the regulations for bringing Danish food specialties (e.g., dairy products) to India? All imported food products must comply with FSSAI regulations. This includes obtaining an importer license, ensuring packaging and labeling meets Indian norms (including nutritional information and veg/non-veg logos), and the product passing tests at the port of entry.
4. How does the “Green Strategic Partnership” between Denmark and India benefit our business? This partnership creates a favorable political and policy environment for Danish companies in green sectors. It often leads to government-to-government collaboration, knowledge sharing, and streamlined consideration for Danish technology in areas like water management, renewable energy, and sustainable urban development.
5. Can we set up a “green” manufacturing facility in India and get special benefits? Yes. India offers various incentives for sustainable practices. This can include accelerated depreciation on energy-efficient machinery, benefits under state-level industrial policies for green buildings, and access to financing dedicated to sustainable projects.

FAQs for Companies from Vietnam

1. What are the main differences in labor laws between Vietnam and India for a manufacturing unit? Indian labor laws are generally considered more complex and rigid. Key differences include stricter rules on terminating “workmen,” the presence of powerful trade unions in certain industrial belts, and a larger number of statutes to comply with regarding social security, working hours, and industrial disputes.
2. How can a Vietnamese company leverage the ASEAN-India trade agreement for textiles and garments? The AIFTA allows for preferential tariffs. A Vietnamese company could import raw materials like cotton from India at a lower duty, and similarly, export finished garments to India at a competitive tariff, creating an efficient, cross-border supply chain.
3. What are the quality control and inspection requirements for goods exported from India to Vietnam? This is primarily governed by the contract between the buyer and seller. The Vietnamese buyer should insist on a contract clause that allows for pre-shipment inspection by a reputable third-party agency (like SGS or Bureau Veritas) in India to certify that the goods meet the required quality specifications.
4. Is it better to have a direct shipping contract or use a freight forwarder for trade? For companies new to the route, using a reliable freight forwarder is often better. They can handle customs clearance, documentation, and logistics in both countries. Larger, high-volume traders may eventually negotiate direct contracts with shipping lines for better rates.
5. How do we resolve a simple trade dispute over a delayed or non-conforming shipment? The first step is commercial negotiation. If that fails, and the contract has an arbitration clause, you can initiate arbitration. For smaller disputes, online dispute resolution (ODR) platforms are also becoming a viable, low-cost option. It’s crucial not to let the issue escalate to litigation if it can be avoided.

Have More Questions?

This guide provides a strategic overview, but every business situation is unique. For tailored advice on your specific India market entry or expansion plans, our cross-border legal team is ready to assist.

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