Deal Maker of the Year Awards 2012

Doing Business in INDIA

Doing Business and Investing in

india

India recently welcomed the news that the reforms regarded by many as being vital for the re-launch of the country’s economy may be about to be pushed through, in move that could see a boost in foreign investment. In anticipation of an investment boost, we spoke to Mahendra Bhavsar & Co, experts in Real estate & Infrastructure law, Corporate Law, M&A & Competition Law, and Foreign Investment Law and Regulations, all of which are beneficial to businesses seeking to start up and invest in India.

Q

How do Mahendra Bhavsar & Co assist individuals and firms that invest or

start-up in India?

Mahendra Bhavsar & Co. is a full service law firm based in Gujarat established since 1982 and caters to both national and international clients. The firm was established as a niche Real Estate Law Firm and still maintains its specialisation in Real Estate issues along with other diverse practice areas. Our approach rests in following the traditions of integrity, commitment and transparency with an aim of delivering results- orientated solutions to its clients.

Areas of practice include; Real Estate and Infrastructure Law, Corporate Law and M&A, Banking and Finance, Arbitration and Litigation, Cross Border Corporate & Commercial, Trademarks, Copyrights & E-commerce, Domestic & International Contracts, Foreign Investment, JV & Collaborations, Shipping and Mining, and Regulatory and Compliance Issues.

Q

What are the benefits for businesses that want to start-up in India?

India has been on the forefront of developing economies for the last decade. Among all

Indian states, Gujarat has been considered to be the most industrialised state in India. In a July 2011 report, “The Economist” noted that Gujarat's infrastructure competes with Guangdong– the economic engine of China. Foreign Direct and Indirect investments are attracted due to several Tax exemptions and holidays given by both State and Central Governments. Recently the Central Government has given its NOD and permitted FDI in multi-brand Retail further opening up the Indian market to Foreign Investments.

Q

In regard to company formations, what are the rules governing how companies can

start-up in your jurisdiction?

The Companies Act 1956 and the Rules, Regulations and Guidelines framed thereunder govern the incorporation of Companies which can be of two types i.e. Private Limited Company and Public Limited Company; whereby funds by way of Public Issue can be raised in the latter as opposed to the former. The procedure of formation is simple and electronic. However, any Foreign Company or person intending to start a company will also have to comply with the Foreign Exchange Regulations along with the Companies Act compliance.

IKEA plans to invest over €600 million in opening 10 new stores in its first stage of investment in the country; is this good for India?

Q

Besides investment, this will also provide for employment and build supply chain networks, which will eventually benefit all

Q

Have there been any legislative changes in the past 12 – 24 months?

The Companies Act 1956 is awaiting amendment by the Companies Bill presently pending with the Parliament; this amendment will greatly impact the law on Company incorporation, management and dissolution, which is further going to benefit investors.