India has an exhaustive legal framework governing all aspects of business. Some of the important legislations include:
Arbitration and Conciliation Act, 1996
Act relating to alternative in redressal of disputes amongst parties.
Central Excise Act, 1944
Act governing duty levied on manufacture.
Companies Act, 1956
Act governing all corporate bodies.
Competition Act, 2002
Act to ensure free and fair competition in the market.
Consumer Protection Act, 1986
Act relating to the protection of consumers from unscrupulous traders/manufacturers.
Customs Act, 1962
Act dealing with import regulations.
Customs Tariff Act, 1985
Act that has put in place a uniform commodity classification code based on globally adopted system of nomenclature for use in all trade-related transactions.
Electricity Act, 2003
Act that regulates generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to the development of the electricity industry, promotion of investment and competition, protection of the interests of consumers and the assured supply of electricity to all areas.
Environment Protection Act, 1986
Act providing the framework for seeking environmental clearances.
Factories Act, 1948
Act regulating labour in factories.
Foreign Exchange Management Act, 1999
Act regulating foreign exchange transactions including foreign investment.
Income Tax Act, 1961
Act governing direct taxes on income of all persons, both corporate and non-corporate as well as residents and non-residents.
Industrial Disputes Act and Workmen Compensation Act
Labour laws dealing with disputes.
Industries (Development & Regulation) Act, 1951Act governing all industries.
Information Technology Act, 1999Act governing e-commerce transactions.
Preventing of Money Laundering Act
Act preventing money laundering and providing for confiscation of property derived from, or involved in, money laundering.
Patent (Amendments) Act, 2004
The Act amends the Patent Act, 1970 to extend the product patent protection to all fields of technology, including drugs, foods and chemicals.
Central Sales Tax Act, 1956
Act governing the levy of tax on sales. Each state has legislation on Value Added Tax (VAT).
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Act seeking to put in place securitisation and asset foreclosure laws creating a legal framework for the establishment of Asset Reconstruction Companies.
The Special Economic Zones Act, 2005
Provides a long-term, stable policy framework and establishes a single-window clearance mechanism for the establishment, development and management of SEZs and units operating in such zones. An SEZ is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
The major fiscal and economic incentives for SEZ units include 15-year income-tax exemption from the date of commencement of operations, exemption of excise tax, sales tax and other levies on purchases from Domestic Tariff Areas and access to cheaper global capital through Offshore Banking Units.
The Act allows 100% FDI through automatic approval route in most sectors. Over 130 such SEZs have been formally approved by the government of India.
