What Is The Process For Receiving Foreign Direct Investment?

A foreign direct investment (FDI) is a form of investment by way of controlling ownership in a business in one nation by an entity based in another. It is thus different from a foreign portfolio investment by the notion of direct control.

The origin of the investment does not impact the definition. As an FDI, the investment may be made either ‘inorganically’ by buying a company in the target country or ‘organically’ by expanding the operations of a business already existing in that country. The Foreign Exchange Regulation Act (FERA) was passed in India in 1973 that imposed stringent regulations on 

• certain kinds of payments, 
• dealings in foreign exchange and securities
• transactions which have an indirect impact on foreign exchange and 
• the import and export of currency.

 For conducting a transaction across countries, the Foreign Exchange Management Act, 1999 (FEMA) needs to be followed. FDI is regulated under this act only, and it is governed by RBI (Reserve Bank of India). This FDI policy has reviewed from time to time by the Government of India. Recent amendments in this act were made that are effective from August 28, 2017. The parliament of India first enacted it in the year 1999. This contains law relating to foreign exchange in regards to payment and development of foreign investment in India. FDI and FPI (Foreign Portfolio Investment) are agnostic for the schedule under which Read More 

10 Most Interesting Indian Cases Everyone Should Know About

Many Indian court cases are remembered as historical events. India is a developing country, and it is essential to make necessary changes according to the need of the people.

10 most interesting Indian court cases are that are full of tragedy:

1.    National Legal Services Authority (NLSA) v. Union of India: 

Petitioner was the NLSA in this case. Other petitioners were Laxmi Narayan Tripathy and Poojaya Mata Nasib Kaur. The Union of India was on the defendant side. The case was put before a two-judge bench of the Apex Court. The judgment took place on April 15, 2014. The Supreme Court declared the transgender people as the ‘Third Gender.’ It upheld that the same equality and fundamental rights would be provided to transgender people like other people under the Constitution of India. Gender equality in India was reformed in a significant way.

2.    Triple Talaq

Talaq (Arabic word) means divorce. It was used to give instant divorce by saying talaq word for three consecutive times. It was done oral, written, or in electronic form. But this right was only given to all Muslim man in India. A bill called The Muslim Women (Protection of Rights on Marriage) Bill, 2017 was passed by the Modi Government. This bill makes this triple talaq illegal in the whole country. Violating this will lead to 3 years of jail. Lok Sabha passed the bill on December 27, 2018, with strong support after some resistance.

3.    Hussainara Khatoon v. the State of Bihar

On March 9, 1979, this petition was filed by Hussainara Khatoon against the State of Bihar or the Home Secretary. The Supreme Court of India affirmed it. Keeping a large number of people behind bars for a long time, maybe for years, is not considered as fair or reasonable. Poor people are Read More 

Kesavananda Bharti v. The State of Kerala: An Impact Analysis

In the words of renowned author and publisher Zia Mody, the Kesavananda Bharti v. State of Kerala case has “protected the Indian State from collapsing like many of its South Asian counterparts, whether through totalitarian rule, military coups or extra-constitutional means.” But before probing into the details of the case above, let’s go back by a few years.

By invoking Article 368 of the Constitution, whether the Parliament can amend Fundamental Rights as given under Part III of the Constitution of India, for the first time came into question in Shankari Prasad v. Union of India. The constitutionality of the 1st Constitutional Amendment Act, 1951, was challenged in this case.

This was the beginning of the most impactful legal battle faced by the country. The Supreme Court ruled that Parliament can amend fundamental rights through Act 368. But things kept dwindling due to separate dissenting opinions of justices which led to two of the most prominent cases of constitutional history after independence – Golaknath v. the State of Punjab and Kesavananda Bharti v. the State of Kerala. While the declaration regarding the non-amendability of fundamental rights was made in the Golaknath where fundamental rights were reckoned as the primordial rights necessary for the development of human personality, the Kesavananda Bharti case established the Read More 

Employment and Labour Laws For Women

 “A woman is like a tea bag- you can’t tell how strong she is until you put her in hot water. “ There was a time when we used to live in a male-dominated society. Women Empowerment is now trending as awareness everywhere. It means creating an environment where there is no violence or gender discrimination and where women have equal rights in the community, society, and workplace. It’s essential for a woman to feel safe about the workplace she is working on. 

For the safety of a woman, there are several laws in a company which needs to be followed. Women safety in India is a big concern which has been the most important topic regarding women safety. India denies the fact that a majority of its women do not feel safe alone on the streets, at work, in markets, or at home, or anywhere. If a woman goes away from home even for 8 hours daily in the office, she must feel safe in the work environment.

Women should know labor laws in place that protect them in the workforce.

1. The Minimum Wage Act: 

There is a minimum amount of money decided by the government that the employer has to pay the employee. The Indian parliament passed the Minimum Wage Act of 1948. In every employment sector, it is the state government that decides the respective minimum wage. It does not matter if the person is a man or a woman, an equal amount of money will be given according to the type of job it is fixed, hourly, etc. It applies to both skilled and unskilled workers. This minimum wage may vary from state to state depending on various factors as decided by the government of India.

2. Sexual Harassment of Women at Workplace Act, 2013

Sexual harassment is the coercion or bullying, of a sexual nature, and the inappropriate or unwelcome promise of rewards in return for sexual favors. Sexual harassment covers a range of actions from mild transgressions to sexual abuse or assault.

There are many laws related to sexual harassment in India. In a workplace, when any employer repeats the mistake under this Act, they will receive severe punishment if given under any other law for the same offense. Also, a business license can get canceled in this kind of situation. 

If any senior colleague or any employee of the company demand favors in exchange for any form of benefits- work or anything else such as money, promotion or salary increment, etc. It is an act of sexual harassment as stated in the Sexual Harassment Act, 2013. In 2013, the Government of India notified the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act. Consistent with the Vishaka judgment, the Act aspires to ensure women’s right to workplace equality, free from sexual harassment. This Act included various issues which remained unaddressed in the past such as an extension of the definition of a workplace to include almost all types of establishments including private sector organization, dwelling places or houses, the inclusion of the term domestic worker and unorganized sector to address the Continue Read...

Free Legal Advice : Legal Requirements for Starting a Food Business in India

A restaurant is a place where people can sit and eat their meals in exchange for money. Everyone likes to eat something unique once in a while, what could be the best place like a restaurant. There is no doubt that it is a booming business which can never be in loss if the quality of service and food are great. Before starting any restaurant people select the concept behind their restaurant, place, amount of investment, begin hiring employees, deciding the menu, cuisine, etc. But they often tend to neglect legal compliances during the process of opening their restaurant. To run the restaurant smoothly, one has to pass through some legal procedures. It is not much time-consuming. There are specific numbers of licenses required to run a restaurant. 

1.    Food license

To establish a restaurant in India, then an application for food license is to make, which is provided by the FSSAI (Food Safety and Standard Authority of India). Anyone can file an application for this license online from the official website of FSSAI. Documents required for the food license registration are:

•    PAN card & Aadhar card

•    Passport size photos & addresses proof

•    NOC agreement

The state FSSAI license is provided to restaurants and hotels, and the central FSSAI license is provided to slaughtering units, proprietary foods, etc. The documents required for the state FSSAI license are a list of food items that will be served in the restaurant, NOC, contact details of Continue Read...

Importance of Sports Law by Advocate Karthik Raghavan

The whole concept of Sports Law is at a nascent stage in India. It is nothing but an amalgamation of Labour Law, Contract Law, Competition Law, Intellectual Property Rights Law, Anti-Trust Law and various other fields. From a sporting context, it is applicable to public order, drugs, safety, disciplinary measures, conduct & various other issues relating to restraint of trade, anti-competitive behaviour, match fixing, and defamation & privacy rights. From a legal standpoint, sports figures in the Seventh Schedule, List II (Entry 33) i.e. State List of the Constitution of India. India has and continues to host numerous sporting events at the national & international level. In fact, the last major international sporting event to be Continue read

Importance of a Company's IP During Valuation And Funding by Advocate Ankush Bedi

Intellectual property (IP) plays an important role in a start-up's business, especially when the startup is involved in technology. However, often times, startups fail to recognize this. Protecting a company’s IP also plays a crucial role in attracting investments. While venture capitalists want to know where innovation or invention stands vis-à-vis competitors in the prevalent market, other potential investors also think about whether it is advantageous to build a business based on the innovation or invention. Protecting the company’s IP also avoids litigation costs arising out of infringement claims, which is not affordable for a new venture. Therefore, investors also look at the IP protection system in place before they advance funds to the startup.

Importance of IP for StartupsBefore talking about IP protection for startups, it is Continue read