A foreign company looking to set up operations in India has two main options - as an incorporated entity under the Companies Act through joint ventures or wholly owned subsidiaries, or as an unincorporated entity like a liaison, representative, project or branch office. Labor laws in India address issues like dispute resolution, working conditions, compensation, and more, and are governed by both central and state governments. Taxation in India has a clearly defined structure with central, state and local taxes, and the tax system has undergone reforms in recent years to simplify compliance and administration.

1. A foreign company planning to set up business operations in India has the following options to set up a
business entity. Firstly, as an incorporated entity under the Companies Act 1956 through Join Ventures
or wholly owned subsidiaries. Also, as an unincorporated entity through liaison office/representative
office or project office or branch office of a foreign company. Such offices can undertake activities
permitted under the Foreign Exchange Management Regulations.
For more information about Management Regulations visit http://www.rbi.org.in/scripts/Fema.aspx
India provides for core labor standards for welfare of workers and to protect their interests. India has a
number of labor laws addressing various issues such as resolution of industrial disputes, working
conditions, labor compensation, insurance, child labor, equal remuneration etc. Labor is a subject in the
concurrent list of the Indian Constitution and is therefore in the jurisdiction of both central and state
governments. Both central and state governments have enacted laws on labor issues. Central laws grant
powers to officers under central government in some cases and to the officers of the state governments
in some cases.
http://labour.nic.in/content/ Ministry of Labor and Employment provides information related to
Workmen’s Compensation Act 1923, Minimum Wages Act 1948, Payment of Wages Act 1936, Industrial
Disputes Act 1947, Employees Provident Fund and Miscellaneous Provisions Act 1952, Payment of Bonus
Act 1965 Payment of Gratuity Act 1972, Maternity Benefit Act 1961, Industrial Employment (Standing
orders) Act 1946.
India has a well-developed tax structure with clearly demarcated authority between Central and State
Governments and local bodies. Central Government levies taxes on income (except tax on agricultural
income, which the State Governments can levy), customs duties, central excise and service tax. Value
Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land
revenue and tax on professions are levied by the State Governments. Local bodies are empowered to
levy tax on properties, octroi and for utilities like water supply, drainage etc. In last 10-15 years; Indian
taxation system has undergone tremendous reforms. The tax rates have been rationalized and tax laws
have been simplified resulting in better compliance, ease of tax payment and better enforcement. The
process of rationalization of tax administration is ongoing in India.
Furthermore Taxes are supervised by the Income Tax Department.
http://www.incometaxindia.gov.in
INDIA
PERFIL NORMATIVO

2. For information related to the different types of taxes visit
https://www.indianembassy.org/trade.php
Incorporation of a company in India is governed by the Companies Act 1956. A company could be a
private limited company or a public limited company. All related issues are handled by the Ministry of
Company Affairs.
http://www.mca.gov.in/
In India, the main legislation governing foreign trade is the Foreign Trade (Development and Regulation)
Act, 1992. As per the provisions of the Act, the Government of India formulates and announces a foreign
trade policy and amends it from time to time. The new Foreign Trade Policy (FTP) announced in August,
2004, covering a five year period of 2004-2009 is a comprehensive policy for the overall development of
India's foreign trade sector. It is built around two major objectives (i) to double India's percentage share
of global merchandise trade within the next five years; and (ii) trade to act as an effective instrument of
economic growth by giving a thrust to employment generation.
The Ministry of Commerce and Industry is the most important organ concerned with the promotion and
regulation of foreign trade in India. The Ministry has an elaborate organizational set up to look after the
various aspects of trade.
Ministry of External Affairs at www.mea.gov.in
Ministry of Commerce & Industry www.commerce.nic.in
The free trade zones in India are under the regulation and legislation of The Ministry of Commerce &
Industry. For the last couple of years Sri City special Economic Zone offers multiple advantages including
income tax exemptions, single window clearance and all other fiscal and operational benefits that are
unique to a free trade zone. This tax-free, Free Trade Export Zone in southern India provides businesses
the much-needed hassle-free working environment.
http://www.sricity.in/jp/special_economic_zones.html
Ministry of Commerce & Industry www.commerce.nic.in
In the Constitution of India it is clearly stated that it is the duty of the state to ‘protect and improve the
environment and to safeguard the forests and wildlife of the country’. It imposes a duty on every citizen
‘to protect and improve the natural environment including forests, lakes, rivers, and wildlife’. Reference
to the environment has also been made in the Directive Principles of State Policy as well as the

3. Fundamental Rights. The Department of Environment was established in India in 1980 to ensure a
healthy environment for the country. This later became the Ministry of Environment and Forests in 1985.
Everything related to environmental law is within The Environment Protection Act (EPA) 1986 and the
ministry in charge of it is The Ministry of Environment and Forest.
http://envfor.nic.in
In India, there are severa legislations when it comes to real estate on different issues such as Land
acquisition and so on. The most important regulations are the Indian Contract Act, the Transfer of
Property Act, the Registration Act, the Special Relief Act among others.
For further informaton visit: http://credaincr.org/policy_details.php?p_id=4