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Essential Commercial Law Tips for Successful Business

India is the world’s second most populous country with an enormous domestic consumption base which is increasing with each passing day. Both small and large-scale companies from different parts of the world try to set up their business ventures in India, sell the manufactured products/services, and earn great revenues every week/month/year. 
 
The rapidly growing volume of the Indian market has encouraged several people to relinquish 9 to 5 jobs and join business sooner or later. When you enter into the business world, apart from other factors, you have to follow the basic principles of business laws if you want to make your business successful and expand it in all directions. Here are some practical steps following which you can easily abide by the Indian business law and run your business smoothly:

1. Make Business Agreements In Written

The Indian business law makes it mandatory for entrepreneurs to make business contacts in writing so that they can be executed and enforced. So, when you start a business, make all contacts with your supplier, lawyer, business partners, associates, stakeholders, etc, in writing and be clear about the specification, quantity and quality of the products, the purchase price and payment provisions, hiring and firing policy of employees, etc. For all these, a lot of business laws and regulations are implemented. If you are not acquainted with that, it will be better for you to hire corporate lawyer firms. They will help you to conduct various business activities as per the law and keep you away from any litigation. 

2. Choose The Method And Location To Resolve Disputes

Disputes are quite common in business. Always keep in mind that resolving a dispute successfully through the Indian courts can be time-consuming and irritating. Therefore, to avoid unpleasant situations and business disputes, all stakeholders must agree on arbitration as the way to conclusively resolve disputes.

You must know that Indian arbitration legislation is based on the Model Law adopted by the United Nations Commission on International law. As per a recent pronouncement of the Supreme Court of India, courts have limited rights when it comes to business disputes. Therefore, you must look for specialist advice on structuring the dispute resolution framework in your business contracts. This will help you to avoid unwanted litigation against your company/business and pay your attention to the development of your business. 

 

3. Take Note Of The Competition Law

When you enter into the business world, you face competition from your rivals. In business, all companies try to leave their competitors behind by all possible means and capture the maximum share of the market from where they get business. This is regulated by the competition law. 

Recently, a new competition law regime has recently come into effect in India which junks business deals that are likely to cause an appreciable adverse effect on competition in business. Make sure you are conducting business deals as per the competition law. If you don't have the in-depth knowledge about the law, seek the consultation of a corporate lawyer in this regard. 

 

4. Fully Comply With India’s Foreign Trade Policy

If you are involved in business activities that involve foreign traders, then you are supposed to follow India's foreign trade policy without any fail. Always keep in mind that foreign trade in India is regulated by the Directorate General of Foreign Trade (DGFT) which, from time-to-time announces and updates the policies and procedures required for business. In order to take care of all these issues and run your business smoothly, hire an expert lawyer who has specialization in laws related to the important and export laws.

5. Consider Having A Local Presence In Different Indian Cities/States

When you start a business and it becomes superhit, you find it very difficult to manage different business activities from one place. So, to market, distribute or package goods and expand your business activities further, you need to have a local presence in different Indian states/cities. It will help you to set up business liaisons easily, address the concerns of stakeholders, and reach out a large number of existing and potential customers easily and quickly with your products and services.

Source: https://ahlawatassociates.jimdo.com/2017/09/29/essential-commercial-law-tips-for-successful-business/

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