7 Laws applicable to all business types in India
Irrespective of the type of business type there are certain business laws that would be applicable to all business types. Here is the checklist of 7 Laws applicable to all business type in India:
- Companies 2013 Act – governs the incorporation management, restructuring, and dissolution of companies.
- Indian Contracts Act – governs the grounds on which contracts are valid, relating to the formation and enforceability of contracts, consideration, the various types of contracts including those of indemnity and guarantee, bailment and pledge, agency, and breach of a contract.
- FEMA – governs India’s foreign exchange and regulates the inflow and outflow of foreign exchange and investment into/from India.
- SEBI Act – governs India’s securities market regulator, public offers of securities, offers of securities by listed companies, the terms of mandatory and voluntary tender offers for shares of listed companies, and the process for delisting of a listed company);
- SCRA – governs listing and trading of securities on stock exchanges in India and the Listing Agreement with stock exchanges;
- Competition Act – governs the fair competition in the market.
- Income Tax Act – governs the tax treatment of dividend, capital gains, mergers, demergers and slump sales.
In addition to the top 7 laws there are sector-specific legislation (e.g. the Indian Telegraph Act, Drugs and Cosmetics Act, Press Council Act, the Banking Regulation Act, the Insurance Act, and various labor legislation (Industrial Disputes Act etc.) which are to be considered depending on the nature and type of the transaction.
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