India’s Laws & Regulations

Rule of law is strong in India, which has an effective legal system based on common law. However, the backlog of cases in the courts can cause delays and challenges for U.S. companies doing business in India.

U.S. Companies involved in complex projects should allow for delays when developing project timelines and factor in the legal expenses that will likely be incurred. It is very important to have a capable local attorney to help with potential litigation. For large-scale projects, U.S. companies may encounter public interest litigation and media reaction and should be prepared for these eventualities.

Also, because the Indian government controls inbound investments, local legal advice is helpful when researching investment options and how best to establish a business presence in India. The country’s legislation on foreign direct investment, reformed in 1991 and revised frequently since, including in 2008, has contributed to the investment-friendly environment that exists today.

There are several Indian law firms that are well equipped to serve multinational and foreign companies, and which offer the full range of legal and tax services. The U.S. Foreign Commercial Service and U.S. Embassies and Consulates maintain lists of local law firms. Please contact the U.S. Commercial Service offices in India for these lists. Although U.S. law firms are currently prohibited from directly practicing law in India, they are allowed to partner with Indian law firms.

Key Business Law Provisions

Indian Labor Laws

Additional Business Law Provisions

Foreign Direct Investment

Anti-Trust Regulations