ASSIGNMENT ON

The Indian Legal System— Whether it aids/ supports Business or hinders

Business’.

Submitted in the partial fulfilment for the award of degree in

Master of Business Administration
To
CMS BUSINESS SCHOOL
(JAIN DEEMED-TO-BE UNIVERSITY)

Submitted by: SINDHU.A. P

Regd. No: JU2022MBA12463
Subject: Business law
Submitted on: 12th November, 2022
Why do we need Business Law?
The prime purpose of business law is to maintain order, resolve disputes, establish
generally accepted standards, protect rights and liberties when it comes to business
and its relation to other businesses, government authorities, and the
customers.
Business law helps all the companies to have - A Universal set of
standards, Maintenance of Equilibrium, Less chances of frauds, Presence of Ethical
conduct.
Business law is of immense importance to both the business as well as consumers in
protecting their rights and getting better service.
The purposes and functions of business law include maintaining order, protecting
rights and liberties, establishing standards, and resolving disputes.

Indian Legal System in Business

An appropriate entry strategy is a must for every foreign investor seeking to do
business in India or with counterparties based in India. Entry strategy
would usually vary depending upon the nature of business, the concerned sector,
scale of operations and costs and other commercial objectives. Broadly, foreign
investors can set up either a company, branch/liaison office or a limited liability
partnership (LLP) in India. Indian companies are governed by the new company
law, the Companies Act, 2013. LLPs are governed by a separate legislation, the
Limited Liability Partnership Act, 2008. It may be pointed out that the Indian
government has launched a series of initiatives aimed at enhancing the ease of
doing business in India. The companies also should be familiar themself with Indian
labour laws at the time of commencing operations in India. The companies should
ensure that appropriate registrations are obtained and all HR records, files,
documents and correspondence are maintained according to the
requirements under Indian labour laws.
The Indian government has been determined to make it easier to do business in
India and has implemented a variety of initiatives. The country sits 63rd on the
global scale for ‘ease of doing business’, according to the World Bank’s‘Doing
Business 2020’ report. However, India has ranked among the top ten improvers in
the past three of these reports.
Some of the factors that are making India simpler for businesses include:
●The implementation of a new wage code, which will make
compliance comparatively simpler
●The government is encouraging investment in India by promoting
alternative investment funds
●The government’s initiative of ‘Start-up India’ will give a boost to the
ecosystem of entrepreneurship and innovation.
Regulatory Environment - The Companies Act 2013, followed by a
variety of clarifications from the Companies (Amendment) Act, replaced the
previous Companies Act 1956. The new Companies Act is the most important law
covering all aspects of a company, including the requirements for forming a
company, the powers and responsibilities of directors and managers, the raising
of capital, and so on.
Although India has reduced the time required to register a new business to 68 days,
entrepreneurs still need to go through ten procedures to start a business.
Accounting standards are governed by the Institute of Chartered Accountants of
India and financial statements must be prepared annually, with a fiscal year-end of
31 March.
Corporate law is also known as company law or corporate law. It is the potential
study that determines how consumers, the community, and the environment interact
with one another. The set of laws together determines how shareholders, directors,
employees, creditors, as well as other stakeholders, coexist in the corporate sector.
Some of them are Employment and Labour Law in India, Corporate Social
Responsibility (CSR), Companies (2nd Amendment) Act 2017 and 2013,
Prevention of Money-Laundering (Amendment) Act, 2005. etc,

Conclusion
Doing business in India isn’t easy, and it’s important to engage local professionals
with the knowledge to guide you through the legal, financial, bureaucratic
and cultural complexities.
As a conclusion, India offers enormous opportunities for overseas investors, but it is
a large and complex market which needs careful navigation to achieve success. It is
best to view India not as a single market, but as a series of interconnected regional
markets where the regulatory and investment environment may change
from one state to another and also India is a country with huge business
potential.