Seminar on India and Japan Working Closely Overview of Doing Business in India

by Poorvi Chothani, Esq. LawQuest

www.lawquestinternational.com

May 12, 2008

LawQuest 2008. All Rights are Reserved.

Company Structure in India

Private Limited Company
Minimum two shareholders and two directors Minimum paid up capital approx. USD 2500

Public Company
Minimum seven members and three directors Minimum paid up capital approx. USD 12500 Indian director and Indian shareholder not mandatory Registrar of Companies (ROC) - the Statutory Authority

LawQuest 2008. All Rights are Reserved.

Foreign Investor Entry Options into India

Liaison Office / Representative Office Branch Office Project Office Incorporation of Company Franchising

LawQuest 2008. All Rights are Reserved.

Foreign Direct Investment

Prohibited Sectors multi-brand retail trading, atomic energy and agriculture Sectors subject to cap telecommunication FDI up to 49% permitted, Insurance 26% Government permission not required for most other projects Termed the Automatic Route Post Facto intimation to Reserve Bank of India (RBI) required for Projects Covered by the Automatic Routes
LawQuest 2008. All Rights are Reserved.

Special Economic Zones (SEZ)

Duty free import/domestic procurement of goods
100% Income Tax Incentives for Limited Periods Exemption from Certain Taxes Single window clearance for Central and State level approvals

LawQuest 2008. All Rights are Reserved.

Indian Judiciary System

Three tier structure
Supreme Court at the Apex State High Courts Administrative Districts District Courts

Foreign lawyers not permitted to appear in courts Foreign law firms not permitted entry into India

LawQuest 2008. All Rights are Reserved.

Intellectual Property Rights

Trade Marks valid for 10 years and can be renewed periodically Copyrights generally valid for 60 years after the death of the author Patents valid for 20 years
Owners entitled to civil remedies and criminal* actions, injunctions damages, seizure and forfeiture of infringing matters depending on the nature of the offence * No Criminal Action available for patent infringements

LawQuest 2008. All Rights are Reserved.

IPR and the IT Industry

Some Relevant Differences

Copyrights
Software is entitled to Copyright protection Certain Embedded Software may merit Patent protection Works for Hire Employee vs. Under Contract Fair Use or Fair Dealing Assignments and Licensing

Patents
Joint Ownership Rules

LawQuest 2008. All Rights are Reserved.

Data Protection and Privacy

Indirect Protection
Self Regulation often set high standards to comply with the laws relevant to the foreign client Standardization BS7799 and ISO 17799 Physical Measures Contractual Terms
LawQuest 2008. All Rights are Reserved.

Co-Operation Between Japan and India

Information Communications Technology Forum Ministerial Level - Signed in 2005 Also Signed 3 MoUs at various departmental levels To implement a Prime Ministerial Level commitment with specific objectives To identify and explore the possibility of joint ventures and stand-alone projects in the areas of broadband, mobile communication, e-governance, information security, research, development and ubiquitous computing. The Joint Working Group has had subsequent meetings to further the objective There are several MoUs at inter-governmental levels for cultural, educational and other collaborations

LawQuest 2008. All Rights are Reserved.

LawQuests Areas of Practice

Commercial Transactions and Business Law Real Estate Law Data Protection and Privacy Law Wills and Trusts Intellectual Property Law Security and Banking Law Global Immigration Law - India, US and UK Legal Services for the Financial Sector

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Thank You

LawQuest 2008. All Rights are Reserved.