As a business owner in India, you need to know what Company Law includes and the harm it can do if not followed. Here’s all about the laws and corporate lawyers in Mumbai.
Corporation law, also known as corporate law or company law, deals with the formation and operation of corporations.
The law is related to commercial and contract law, and this law body governs legal entities that conduct business.
Let’s get into depth and learn more about corporate and commercial laws and understand the advantages of having a corporate lawyer in Mumbai by your side.
Corporate and Commercial Laws
Corporate laws
Corporate law (also known as business, enterprise, or company law) is the body of legislation governing the rights, relationships, and actions of individuals, corporations, organisations, and businesses.
Corporate law frequently refers to the law governing matters arising directly from a corporation’s life cycle. Thus, it includes a corporation’s formation, funding, governance, and demise.
While the minute nature of corporate governance as exemplified by share ownership, capital market, and business culture norms varies, many jurisdictions have comparable legal traits and legal concerns.
Corporate law governs the interactions of corporations, investors, shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community, and the environment.
While company or business law are often used interchangeably with corporate law, business law usually refers to broader ideas of commercial law, that is, the law dealing with commercial and business-related purposes and activities.
In some circumstances, this may include corporate governance or finance law issues. When used in place of corporate law, business law refers to the law governing the business corporation (or business enterprises), covering activities such as capital raising, company formation, and government registration.
Corporate affairs in India
Numerous company laws or business laws in India govern corporate affairs, which are implemented as company laws in India and regulations by the Government of India and administered by the Ministry of Corporate Affairs (MCA).
The following are a few regulations in India to control fair and good competition in the market, collectively known as company laws in India or company law act.
- Companies Act, 2013
- Societies Registration Act, 1860
- The Indian Partnership Act, 1932
- The Companies Amendment Act, 2006
- The Limited Liability Partnership Act, 2008
The characteristics of a corporation law
Corporations are taxable entities that shield the shareholder or individual owners from personal liability for the debts and corporations’ liabilities. Some exceptions include unpaid taxes for which the shareholder or the respective owners can be held liable.
Since Corporations get taxed at a lower rate than individuals, they are often used to tax structuring. So, a corporation ceases to exist only after being formally dissolved.
For a corporation to do business in Mumbai, it must obtain permission as per Maharashtra’s corporation law.
Along with state laws, there are also central laws relevant to corporations. Specific industries and corporations are subject to central licensing and regulation, such as communication and public transport.
The Purpose of Corporation Law
The laws cover the rights and obligations of everyone involved with the following in operation:
- Forming the corporation
- Operating the corporation
- Owning the corporation
- Managing the corporation
Company law in India is friendly for businesses, and thus, it makes it easier for businesses to get things done. The law intended to make things simpler for a corporation to conduct business. The correct use of corporate law can make your business establishment shine.
It is good to seek legal help from corporate law firms in Mumbai and other regions from the beginning of your business to get the law to work in your favour.
Commercial laws
Commercial law is one of the most important fields of law. This branch of law is concerned with business-to-business and consumer-to-business transactions, employee contracts, business contracts, financial transactions, and other issues.
Commercial law, often known as mercantile or trade law, controls the rights, relationships, and activities of individuals and businesses involved in commerce, merchandising trade, and sales. It is commonly regarded as a civil law branch that addresses private and public law issues.
Contracts
Commercial law is built on contract law. In commerce, goods and services are given per contract terms established between businesspeople. In rare circumstances, the parties may have independently negotiated each contract provision. However, in many cases, there would have been little or no negotiation on the particular details of the agreement beyond the clauses relating to subject matter and price.
In such cases, the parties prefer to effectuate their agreement using standard form contracts, saving time and money that would have been spent drafting each term individually.
The courts are unlikely to meddle with contract freedom and sanctity if the standard contract form is established between businesses rather than between an average person and a company that provides products and services.
It is especially true for standard form contracts created by trade associations and adopted by their members, such as bills of lading, charter parties, insurance policies, and commodity market contracts of sale.
Customs
Merchant customs have long been a source of regulation in commercial law. A custom is a rule that has become law in a particular location, whereas a usage is the established practice of a certain trade or profession.
Courts regularly ignore the technical distinctions between custom and use, confusing the two. A court may accept evidence of trade practice or usage to include a provision in a commercial contract. The court must recognise the custom or use for these purposes because only then will the custom or usage constitute a legally binding obligation.
Common law
Common law can be applied to handle commercial difficulties when a business law lacks a norm to follow or when no tradition exists. Prior court decisions set the standard for common law. In other words, no hard and fast standards govern common law decisions. In addition, decisions may differ from one court to the next or from one state to the next.
Commercial laws in India
- The Indian Contract Act, 1872
- The Sale of Goods Act, 1930
- The Indian Partnership Act, 1932
- The Limited Liability Partnership Act, 2008
- Companies Act, 2013
- Arbitration and Conciliation Act, 1996
Why do you need a corporate lawyer?
Real-estate leases and agreements
You will be looking to shop in an office building, warehouse, or other commercial places unless you decide to run your business from home. Whether purchasing or leasing a space for your business, you will want corporate law firms in Mumbai and other regions to review all terms and conditions in the fine print.
Prevent future lawsuits
Hiring corporate lawyers reduces the exposure of your business to lawsuits. Business lawyers in Mumbai will get your business in legal order for state and central business and employment laws. Being ready and proactive before a case comes to your door will save you from countless headaches down the road.
Protect your intellectual property
Product designs, inventions, logos, original works, trade secrets, etc., are part of your intellectual property. Protecting your intellectual property to maintain your distinct and competitive business is of utmost importance.
A patent, copyright, or trademark can be filed depending on your intellectual property type. Corporate lawyers and law firms can help you protect and preserve your legal rights to your intellectual property.
Drafting contracts
The corporate law firms in Mumbai review all business contracts, whether they are for employees, vendors, customers, etc., to ensure all necessary items and points get covered in the contract.
Are you not sure whether a particular transaction requires a contract or not? Hiring contract lawyers or law firms in Mumbai can provide you with clarity while ensuring the production of a quality contract.
How can we help?
Our corporate lawyers ensure that the corporation does not violate state or central legislation.
Organisations must follow different rules in different countries and areas. A Kaleeyantey corporate is familiar with these complicated rules to ensure that everything the corporation does is legal. We can take care of all the legal necessities to ensure your business runs smoothly in and outside India.
Another essential function our business lawyers perform is providing reliable legal counsel to their clients.
No matter what business you own, we care for corporations and companies, such as a partnership, public firms, or multinational corporations.
Our lawyers educate our clients about their rights, duties, and responsibilities.
Kaleeyantey lawyers utilise their knowledge to keep your organisation out of legal difficulties. You can secure the smooth operation of your firm with the assistance of a qualified corporate lawyer from Kaleeyantey.
Other cases we handle and represent our clients in
Apart from assistance with corporate and commercial laws, our experienced advocates offer various legal services.
Criminal, family, corporate, property, information technology, and cyber law are some cases in which we handle and represent our clients.
Our team represents clients throughout Mumbai and Navi Mumbai and provides legal services 24 hours a day, seven days a week.
Contact Us:
Kaleeyantey law firm has extensive knowledge and experience in assisting clients with corporate and commercial laws. We have achieved positive outcomes for our clients.
You can contact us on the below details:
Mumbai
C/o Parsiana, K. K. (Navsari) Chambers, 39B, Ground Floor, Opp. St. Cathedral School side entrance, Amrit Keshav Nayak Road, Fort, Mumbai 400001.
Our contact numbers are 022-22074336 and 9167 004 264. You can email us at info@kaleeyantey.com
Navi Mumbai
No 61, Thapar Complex, Sector 15, Near Arcee Electronics, Behind New CBD Belapur Court, CBD Belapur 400614.
Our contact numbers are 022-41207937 and 9987 517 492. You can email us at info@kaleeyantey.com
