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Foreign Direct Investments (FDI) Routes in India

There are two routes in India for Foreign Direct Investment namely, the Automatic Route and the Government Route. Foreign citizens or entities can make investments in debentures or shares of an Indian company, through either the Automatic Route or the Government Route of Foreign Direct Investment (FDI). Who can Invest in India? According to Foreign Direct Investment (FDI) Policy, the Government of India allows non-resident entities to invest in India except in sectors which are prohibited.Non-Residents of India (NRIs) in Bhutan and Nepal and citizens of Nepal and Bhutan are permitted to invest on repatriation basis in the capital of Indian companiesA...

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Concept of Transfer Pricing and Foreign Direct Investment (FDI) in India

Transfer Pricing is closely related to Foreign Direct Investment (FDI) as its definition suggests- Transfer Pricing refers to the price that is paid by an entity for transferring of goods and services from one entity to its other entity/branch/office situated in another country. Now the question is what are the transactions that are subjected to the Transfer Pricing?So, to answer this question the transactions like sale of final goods, purchase of raw material to produce final goods, buying of fixed assets, buying or selling of machineries, support services rendered, IT enabled services, payment for technical services rendered, software development services, Management...

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Setting-Up of Liaison Office by Foreign Corporations in India

Setting up a Liaison office in India is a preferable option for foreign entities planning to set up their business in India as it would help the foreign entity to look out for possible business opportunities and to develop a strategy to promote business activities of the parent company outside of India. Concerned Authority for Approval of ApplicationThe Foreign Exchange Management Act,1999 (FEMA) administered by Reserve Bank of India (RBI) regulates the application process for establishment of Liaison offices in India and is also responsible for approval of the same. Applications from foreign entities that are non-profit organisations, non- government organisations...

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Right to Privacy in the light of Pegasus Scandal

“A man’s house is his castle”, a well-known saying which implies the inherent right to privacy that every human being possess. Every human being has the right to prevent the disclosure of intimate details of their life. Right to Privacy simply allows a person to be left alone.Right to Privacy is one such right that came into existence due to wide interpretation of Article 21 of the Constitution of India. The Constitution of India does not explicitly provide for the right to privacy as a Fundamental Right. Article 21, the heart and soul of the Indian Constitution, provides for an...

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Legal Consequence of Publishing Illicit Content on Mobile Apps

With tremendous development of technology the use of the internet has grown by leaps and bounds in India. However with the increasing use and dependency upon the internet, there has been frightening increase of cyber crimes in India. One such cyber crime is the publication of obscene content using the internet. Due to the transcendental reach of internet, published obscene content poses a threat of destroying the moral fabric of the society. In a recent incident, businessman Raj Kundra was arrested for being involved in publishing pornographic content using mobile app 'Hotshots'. The mobile application was mainly used for...

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Consumer Laws & Ayurvedic Medicines

The Ministry of Consumer Affairs, Food and Public Distribution, Government of India is mandated with a Consumer Protection Division for implementing the Consumer Protection Act, 2019 and Rules and Regulations made thereunder. The goal of every business operation is consumer satisfaction, and the business and government are obligated to protect the interests of the consumers. In every aspect of business management, the consumer is an end goal and need. Consumer protection and awareness are vital. It includes various rights, such as the right to be protected against the marketing of goods and services, the right to acquire the knowledge, quality...

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Legal Compliances for Manufacturing & Selling Ayurvedic Medicines in India

The Pharmaceutical Industry stands as one of the biggest production houses for economic development worldwide. Ayurveda is considered to be the long-established system of Indian medicine. The practice of Ayurvedic medicine is considered to be a well-organized and established method of traditional health care. Ayurveda, in comparison with scientific medication, has both preventive and curative angles. The Ayurveda market in India has exhibited strong and effective growth during 2015-2020. The industry is flourishing as the need and demand from the population for organic products is consistent and multiplies every day. Ayurvedic products portray a positive outlook in the eyes of...

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Laws governing IT Security Companies in India

As it is easily perceptible that in recent times cybercrimes have been causing unanticipated damages across industries, nations, governments and individuals on a global level. Cyber threats are not only limited to data breach but are also predominantly active in areas such as, theft of identity, breach of data, monetary loss or financial theft, among others. The world of cybersecurity is fostering day by day, and catering towards the needs of businesses, but simultaneously, the world of cyber-crime is also increasing, updating and targeting the businesses in every new way possible. Hackers are efficiently working and attacking at the weakest...

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Precautions before Hiring your next IT Security Company: Legal Advice

Cyber-attacks have been proliferating in the past few months, and now firms and companies have begun batting an eye on this issue and started taking it seriously. Cyber-attacks are not new, but with development in IT security technology comes the development in breaching the said security too. Along with the rapid expansion in today’s world, the level of skills possessed by the cybercriminals and threats posed by them towards the big IT companies and business owners, has also burgeoned, such as hacking attacks, spamming, data theft, black hat practices etc. A string of various cyber-attacks has ultimately put forward the...

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Criminal Defense of Requisition Before Search in Gold Smuggling Cases: Legal Advice

Section 2(39) of the Customs Act (CA), 1962 states that smuggling, concerning goods, means that any omission or act which would cause such goods liable to be confiscated under section 111 or section 113 of the Customs Act (CA), 1960. Section 111 and Section 113 of the aforesaid Act confers power to the customs officer to confiscate illegal import and export of goods. Section 11(1) of the said Act confers power upon Central Government to stop, either subject to such absolutely or condition (to be fulfilled after and before clearance), export or import of any goods by the notification in...

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