More than 80% of business in India are done on a small scale and due to the complex and time-consuming legal process in India, all business organizations believe in doing business carefully and in a different way. Corporate law is gives a lot of importance in developed countries like Europe and America.
In India, companies do not specifically appoint legal experts or lawyers, and the companies that do this are big companies that can bear the cost of a lawyer. Far from hiring a small business lawyer, hiring him for a specific job also considers it very expensive.
After 1990, the Government of India made changes in the economic policies in India, as a result of which foreign companies started coming to India and the demand for corporate lawyers started increasing. Most of the lawyers in India know how doing the traditional profession which deals with civil law and criminal law matters. But how much the scope of corporate law has expanded and is suitable, it is not known to the people of the lawyer profession and Indian companies in the corporate sector understand its importance.
What is Corporate Law? –
If we see the true meaning of corporate in a good English dictionary, then it is found that “large business group” it is not called any one company, but a group of companies doing big business is called corporate. Big business houses consider it a priority to hire expert people at a professional level, whereas small scale companies refrain from incurring such expenses.
Corporate Law means whatever legal process has to be done from the inception of the company to the dissolution of the company and the experts who are hired to do this work are called Corporate Lawyers. All the government and international laws related to the company have to deal with the company, it is called corporate law.
Small businesses do not consider this expense as important for their business and they try to solve the legal problems in a different way while doing business. After coming to foreign India after 1990, we started to understand its importance and the people working in it also benefited from it. In the coming times in India, its importance is going to increase even more, we will see about it in further detail.
Ministry of Corporate Affairs –
This ministry is responsible for corporate law and corporate law in India is governed by this ministry and rules, orders and other services for the corporate sector are received from here. Like we said that due to globalization, the importance of this ministry has increased a lot because if foreign companies want to do business in India, then they have to come to India by this ministry.
This ministry has been created by the Corporate Ministry mainly for the implementation of the Companies Act 2013 and all the laws made in the Parliament from the corporate sector. This ministry is run by the cabinet minister and for this the cadre base officers of the executive are appointed, to whom this ministry provides the power of implementation all over India by law.
The direct system of all the laws under the Corporate Ministry is handled by this Ministry, in which Competition Commission of India, Insolvency-Bankruptcy Board, Companies Act, Partnership Act, LLP Act, many such laws are operated by this Ministry.
Therefore, any corporate company and corporate lawyer have to pay attention to the functioning of this ministry and its activities, so that the changes in the corporate sector and updates of policies have to be understood.
Ministry of Commerce & Industry –
This ministry determines what will be the foreign trade policy to increase the business running under India, so this department is also of utmost importance in corporate law and the corporate sector has to pay attention to the upcoming changes and policies of this ministry. Is. The following offices come under this ministry, which has to be controlled.
- Administration and General Division
- Finance Division
- economic division
- business policy division
- Foreign Trade Regional Division
- State Business and Infrastructure Division
- supply division
- Plantation Division
Works under the Ministry of Commerce & Industry / Work Area of Commerce & Industries Ministry –
- international trade
- foreign trade
- state trade
- Indian business services management
- Special Economic Zones (SEZs)
By the way, there are many ministries in corporate law, which corporates and professionals have to deal with, so it is very important to be aware of it. International companies in India, most of the corporate law is very serious, so its importance is generally not seen in the corporate sector in India and its experts are also seen very less in India than in developed countries.
Corporate Law and the Government of India Policies –
Corporate Law in India Due to not growing this profession, it is the judiciary of India, in which only criminal cases are seen in the Burden Court. In civil matters, the situation is worse, the Supreme Court has told the Government of India about it many times, but till date no government has been able to solve this problem.
According to the guidelines given by the World Bank to India, in the coming days, this arrangement and tribunals will be seen in the India Alternative Dispute Resolution (ADR). But this is not a complete solution, in the end all the disputes come in the court and there is a lot of need for improvement. Therefore, in the coming days, we can see many changes in the judicial system which will prove to be good for the corporate sector.
In India, 80% more business is run on a small scale, the most important reason for this is that the corporate law is very weak and if any, business mind wants to increase its business, then it has to have political relations in compulsion. Those who do not want to get into the political system, they keep their business on a small scale.
Important Corporate Laws –
- The Companies Act 2013 ( Amendments)
- The Competition Act 2002
- Indian Contract Act 1872
- Indian Sales & Goods Act 1930
- Insolvency & Bankruptcy Code 2016
- Limited Liability Partnership Act 2008
- Securities Law (Amendment) 2014
- Special Economic Zone Act 2005
- The Securities & Exchange Board of India Act 1992
- The Real Estate (Regulation & Development) Act 2016
Important Works of Corporate Law –
- Intellectual Properties
- Banking & Finance
- Tax Matters
- Capital Market
- Alternative Disputes Resolution
- Competition Commission of India Disputes
- IBC Matters
- Labor Laws & Disputes
- Projects & Projects Management
- General Corporate Works
Some Special Corporate Legal Firms of India –
- Amarchand & Mangaldas & Suresh Suresh A Shroff & Co.
AZB & Partners
- Khaitan & Co.
- J. Sagar Associates
- Luthra & Luthra Law Offices
- S & R Associates
- Economic Laws Practice
- Desai & Diwanji
- Talwar Thakore & Associates
International Law and National Law –
Due to India’s liberal policies in the corporate sector, international law and international agreements become very important because international companies started setting up their offices in India. After 1990, many laws have been changed in India, which were related to business and trade. Therefore, it can be said that companies that do their business at the international level are more concerned with corporate law.
We are seeing changes in the small sector, and in law and order tribunals and the ADR system have helped companies a lot in solving their practical problems. Therefore, in the coming times, there are very good opportunities for the professionals working in the field of corporate law and the companies are also beginning to understand its importance. Due to the ease of doing international business, it is becoming necessary to hire professionals in international law.
If you want to grow a small business, then it has become very important to hire professionals about corporate law. Earlier, small businesses did not think to do more business due to the flaws in the law and order system, but today government policies are promoting business and the capital to set up business from the market is easily available.
Need of Corporate Law Professionals –
Capitalist thinker Adam Smith believes that the environment needed for India’s economy to grow is available, but the process of production under India has not been developed in advance, which is called exporting excess production. This he said in his famous book Wealth of Nation in the 18th century.
Even today, most of the businessmen in India like to do business on a small scale, but today the situation has changed and if we do not change the way of doing business then we cannot survive in the international market. Therefore, it is a technique to increase the business by which we can face the competition of the market.
For corporate law, small-scale business minds do their work on tax consultants, who are not experts in law, they are tax experts. But to do a lot of work in companies, it is very important to understand the law, otherwise the company has to suffer a lot and problems arise while dealing with international companies.
Due to which our company does not grow. Therefore, it is important to hire knowing the right of corporate law, which guides us in the process of law from the inception of the company to running the company, which is very important today.
In this way, we have tried to know about corporate law, what is corporate law and in the future the need for corporate professionals will increase in India, such policies have been made by the Government of India to promote the corporate sector. By which we understood how important it is to grow companies by knowing corporate law.
The number of people doing business in proprietorship and partnership is very high in India, so business is done on a small scale and does not grow. According to government policies, the benefits and benefits of government policies are available for the companies created in the Companies Act, which are not available on a small scale.
Change in law and order and that too in the business and finance sector, it has been the policy of the Government of India, so small business should take advantage of it and increase their business. For this it will be very important to hire corporate professionals and like big companies, it will be effective to appoint such professionals for specific legal work.