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Laws & Regulations on Franchise Business in India: Lawyers Advice

In India there are no specific laws dealing with franchising businesses. However, according to Black Laws Dictionary, franchising means the license from the owner of a trademark or trade name permitting another individual/licensee to sell the product or service under that trademark. Though no law specifically deals with franchising business, there are some laws which touch upon such businesses within the country. The following are the different laws attached to a business and the legal issues involved therein: Indian Contract Act, 1872:Every franchising business has a contractual relationship between the owner and the licensee. Such contracts are governed by the Indian...

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Legality of Multi-Level Marketing (MLM) Companies in India: Lawyers Advice

Multi-level Marketing (MLM) is a business model where the sale is carried out between one individual to another. Many businesses like Amway, Oriflame, etc. carry out the same individual networking system. The intermediaries involved in a traditional business model does not exist under Multi-level marketing, as the consumers purchase the goods directly from the distributor or seller. The distributor gets a commission for the sale he carries out. He can also appoint other representative under him to sell the products. In 2016, the Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs under the Government of India...

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Laws & Legal Compliances for Direct Selling Businesses in India: Lawyers Advice

Direct Selling is a business model wherein the direct selling companies sell their products directly to the consumers. The usual manufacturing and distribution line of goods or services which include various intermediaries can be avoided or sidestepped as the goods or services can be delivered directly to the consumer without the goods going into the possession of retail stores. According to the Direct Selling Guidelines, 2016 (hereinafter called “Guidelines”), a direct selling entity is one which sells, markets or distributes goods or services through a direct seller. There exists a network of direct sellers at different levels of distribution or...

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Top Ten Tips for Attracting Foreign Investments for Indian Start-Ups: Lawyers Advice

A new trend in the form of startups has seen a steady growth in India in the past one decade. India ranks as the 3rd largest startup ecosystem in the world, with 1,300 new startups emerging in the year 2019. It is responsible for creating 60,000 direct jobs and around 1.5 Lakhs indirect jobs. A startup is a new venture initiated through an entrepreneur which is based around an idea or a problem faced by people, which has a great market potential. The biggest issue faced by such an entrepreneur is to acquire the required funding to implement the idea...

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Precautions to be taken by Foreign Investors before investing in Indian Start-ups: Lawyers Advice

Startups have begun to take a new look in India, with the youth coming up with great business ideas with extraordinary business potentials. More and more investors have started to look towards startups as a great investment option with high returns. In 2019, Indian tech startups alone are able to raise $14.5 Billion funds. Therefore, investors are becoming more interested and inclined towards investing in startups in India. However, in order to ensure a safe investment and highest returns it is necessary to take certain precautions. Precautions to be taken by Foreign Investors before investing in Indian Start-ups are:UNDERSTAND THE INDUSTRY:...

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Polygraph Test & it’s Legal Sanctity: Lawyers Advice

The Polygraph test, also called as the Lie-Detector test falls under the interrogation techniques used in criminal investigations. This test is likely to be used when the accused may be deceitful about the relevant facts of a case. The polygraph test is able to produce the persons physiological responses like his blood pressure, heart rate pulse and galvanic skin resistance, to see whether he is telling the truth or not. The National Human Rights Commission of India had issues certain guidelines with regards to conducting a polygraph test on persons. The following are the legal guidelines to be followed by...

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Foreign Direct Investments vs. Indirect Foreign Investments in India: Lawyers Advice

In order to calculate the total Foreign Investment in an Indian company, all types of foreign investments must be included; Foreign Direct Investment (FDI) and Indirect Foreign Investment. 1) Foreign Direct Investment (FDI):a) Investments made by a non-resident Indian entity or individual directly into an Indian company is called Foreign Direct Investment (FDI). This entire amount is counted as FDI when calculating the total foreign investment in an Indian company. b) In India 100% FDI is permitted under the automatic route, that is where no prior permission from the Government is required for foreign investment. With...

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Laws on Indirect Foreign Investments in India: Lawyers Advice

When an Indian company having foreign investment is owned or controlled by a foreign entity, invests in another Indian company then such investment is called Indirect Foreign Investment or Downstream Investment. Foreign entities are permitted to invest in India either directly by way of Foreign Direct Investment (FDI) or indirectly by Indirect Foreign Investment. Such Indirect Foreign Investment can be carried out as an alternative to Foreign Direct Investment (FDI). Such investments must comply with the Foreign Exchange Management Act (FEMA) and the Securities and Exchange Board of India (SEBI) guidelines and must notify the Reserve Bank of India (RBI)....

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Legal Compliance for Foreign Companies for running Dropshipping Business in India

Dropshipping is a type of business platform which connects the buyers and sellers. This is a platform where the retailer does not keep the goods in stock but transfers the orders to either a manufacturer or another retailer who then delivers the products directly to the customers. This platform is still in the growing stage in India. Some of the Indian dropshipping platforms are TradeIndia, IndiaMart, Coorgle Dropshipping, etc. Since this platform of business is emerging all around the world a question arises if a foreign company can do dropshipping business in India. Foreign Companies doing...

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Intellectual Properties (IP) Protection to Drone Technologies in India: Lawyers Advice

Drone manufacturers, application developers and customers understand the significance of protecting valuable intellectual property (IP) surrounding drones along with the interacting drone applications. As more and more highly developed drones are invented with distinctive utilities, it opens up portal for protection by the grant of patents. GRANT OF PATENT Under the Indian Patents Act, 1970, although there is no express limitation on filing patent applications regarding drone inventions, particular procedures need to be followed if the invention if its collides with military or national interest, and the grant of such patents may be subject to prior government approvals (including the Indian...

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