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INTRODUCTION A representative office ("RO") is established by a legal entity to conduct marketing and other non-transactional operations generally in a foreign country where a branch office or subsidiary is not warranted. This office acts as a facilitator of trade between the foreign parent company and market in India and is not allowed to conduct any revenue generating business and operating cost must be sustained by inward remittances received from their foreign parent company. No minimum capital is required for setting up RO. ACTIVITIES PERMITTED FOR RO A RO will undertake the following activities in India:- 1. Representing the foreign parent company in India 2. Collecting market information about products to Indian customers. 3. Promoting collaborations between parent/group companies and companies in India. 4. Acting as a communication channel between parent company and parties in India. ELIGIBILITY  1. A beneficial track record of the past 3 years of the applicant comp...

INTRODUCTION A Due Diligence Report ("DDR") is a document which includes a proper explanation of financial status of a Company and the Company's standing in the market. A DDR is very important as it exposes the Company's actual status and its reputation is completely dependent on this document. A DDR contains the following headings which helps in understanding the document better:- a. Explanation for the research topic b. Corporate reports, legal records, research documents etc. c. Company's SWOT analysis d. Any liabilities, debts etc. e. Market research, statistics, inspections and other information  AREAS OF FOCUS A DDR focuses on the following aspects of the organization:- a. Evaluation of Company's feasibility to enter into a proposed transaction for which due diligence is conducted. b. Examination of financial records of the Company to understand the its financial stability. c. Examination of the Company's working environment d. Reputation of the Comp...

INTRODUCTION Due Diligence ("DD") involves risk and compliance check on companies which include conducting and investigation to review, audit and verify facts and information about a particular subject. In layman's language, DD means acquiring knowledge before entering into an agreement with any company. A DD check includes a detailed investigation of the financial and legal status of the company or a firm or an individual. A DD check is usually needed when a company decides to merge or acquire another company or invest in real estate or are involved with insurance transactions or performs IPO. There is another concept known as Third Party Due Diligence ("TPDD") which is the process of conducting DD on third party entities such as suppliers, vendors, contractors, agents or business partners before engaging or partnering with them through an agreement. The reason to conduct TPDD is to reduce potential risks and protect the company's reputation. TPDD involves ...

The terms legal opinion and legal advice are often used synonymously thus the terms are used confusedly. Even lawyers used these terms interchangeably but they have actually different meanings.  LEGAL OPINION Black's Law Dictionary defines legal opinion as a written document in which a lawyer provides his or her understanding and interpretation of the law as per the facts of the case. This definition states that lawyers often draft legal opinions on various facets of law when asked by the client. A legal opinion is effective when it is made on the letterhead of the company/law firm signed and stamped by the lawyer representing the company/law firm. A disclaimer is mentioned in the legal opinion which states that whatever is mentioned in it is not a legal advice nor is it protected by attorney client privilege. This disclaimer protects the lawyer and the company he is representing from a potential liability. A client goes to the lawyer and asks for solution to a legal problem, wheth...

Since 1991 when liberalization was introduced in India, there has been considerable increase in FDI inflow which has lead to development of the Indian economy considerably and increase in employment opportunities. The investment climate in India has improved as per the below points:- 1. The improvement is commonly credited to simplifying of FDI norms. 2. Currently, India comes under the list of top 100 countries where FDI is involved. 3. In 2020, Department of Promotion of Industry or Internal Trade ("DPIIT") allowed 100% FDI in insurance intermediaries. 4. In 2019, India was among top 10 receivers of FDI wherein 16% increase from 2018. 5. In India, many sectors have opened up for FDI since LPG (Liberalisation, Privatisation and Globalisation) was introduced. 6. In 2020, Press Note 3 was introduced by DPIIT which stated that the entity of any company belonging to a country which shares a land border with India or where the beneficial owner of investment in India is situated i...