Download India, and Investment Potential in India

India, and Investment Potential
in India
for
The Center For American and International
Law
By :
Gautam Mahajan
President - Inter-Link Services Pvt. Ltd.
June 13, 2006
Inter-Link Services Pvt. Ltd. Tel: 011-26922006, 26831226; Fax: 011-26929055; E-mail: [email protected] /
[email protected] Website: www.interlinkindia.net
DISCUSSION POINTS
1.
General Business Tips
2.
India, and Investment Potential in
India
3.
Foreign Lawyers and Legal Services
in India: Frequently Asked Questions
DISCUSSION POINTS
1. General Business Tips
•
•
•
General Business Tips
American Companies in India
Legal Opportunities
2.
India, and Investment Potential in
India
3.
Foreign Lawyers and Legal Services
India: Frequently Asked Questions
in
General Business Tips
• From the American Business Experience
in India: Lessons from successful
American companies:
– Know the rules and the law and follow them
– Conduct rigid due diligence
– Do not get guided by “quick methods” or
“short-cuts”
– Avoid un-ethical practices
– Hire a good knowledgeable consultant on
India
American Companies in India
Top 5 American employers in India 2 years ago:
General Electric:
Hewlett-Packard
IBM
American Express
Dell
: 17,800 employees
: 11,000 employees
: 6,000 employees
: 4,000 employees
: 3,800 employees (today 10,000, growing to 20,000)

General Electric (GE) with $80 Million invested in India employs 16,000 staff,
1,600 R&D staff who are qualified with PhD’s and Master’s degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs
(upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125,
Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.

Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years,
and will reach 2000 staff by 2006.

GE's R&D centre in Bangalore is the company's largest research outfit outside
the United States. The centre also devotes 20% of its resources on 5 to 10 year
fundamental research in areas such as nanotechnology, hydrogen energy,
photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore as against
120,000 in Silicon Valley.
Legal Opportunities
• Help Indian companies wishing to enter
USA, China etc.
• Help Indian companies and lawyers in
collaborative projects with American
companies outside India
• Buy legal and paralegal services from
India at low rates.. Example is GE
• Send lawyers to India acceptable to the
Indian bar rules or willing to pass the
Indian bar exam
"There are lots of opportunities to use [foreign]
lawyers in place of outside counsel or other
lawyers at a lower cost structure," says
Suzanne Hawkins, senior counsel at General
Electric Co. For two GE businesses -- GE
Plastics and GE Consumer Finance -- savings
from those lower rates are adding up. GE
began adding lawyers and paralegals to its
office in Gurgaon, India, in late 2001. It now
has eight lawyers and nine paralegals there
and has saved more than $2 million in legal
fees that would otherwise have been spent on
outside counsel, according to Hawkins.
Jennifer Fried
The Recorder
August 25, 2004
DISCUSSION POINTS
1.
2.
General Business Tips
India, and Investment Potential in
India
–
–
–
–
–
–
3.
Foreign Direct Investment in India
An overview of Indian Economy
Investing in India – Entry Routes
Foreign Direct Investment: Policy
India’s Competitive Advantage
Investment Opportunities
Foreign Lawyers and Legal Services
in India: Frequently Asked Questions
Foreign Direct Investment in India
Fourth largest
Economy (PPP) - A
safe place
to do business
Largest
reservoir of
skilled
manpower
Largest democracy
– political stability
& consensus on
reforms
Liberal &
transparent
investment
policies
Long-term
sustainable
Competitive
advantage
- High growth rate
economy
An overview of Indian Economy
• Economic Performance
• Foreign Trade
• Investment
• Mature Capital Markets
• A well developed banking system
An overview of Indian Economy
Economic Performance
o Sustained economic growth
o
o
o
o
Average last 10 years
6.5%
2004-05
6.9%
Forecast up to 2006-07
>7.0%
Forecast till 2050 – Goldman Sachs 5 % p.a.
o Services share in GDP over 50% (52.4% share in
GDP in 2004-05)
o Manufacturing sector grew at 8.8% in 2004-05 (17.4%
share in GDP in 2004-05)
An overview of Indian Economy
Foreign Trade
o Merchandise exports grew by 25% in 2004-05, now
US$80 billion
o Imports grew by 36%, now US$106 billion
Investment
o Foreign Investment – over US$14 billion in 2004-05
(FDI US$5.5 billion, FII US$8.9 billion)
Mature Capital Markets
o NSE third largest, BSE fifth largest in terms of number
of trades
Goldman Sachs Report of 1 October,
2003 –
"Dreaming with BRICs: The path to 2050"
India's GDP will reach $ 1 trillion by 2011,
$ 2 trillion by 2020,
$ 3 trillion by 2025,
$ 6 trillion by 2032,
$ 10 trillion by 2038, and
$ 27 trillion by 2050,
becoming the 3rd largest economy after USA
and China.
In terms of GDP, India will overtake Italy by the
year 2016, France by 2019, UK by 2022,
Germany by 2023, and Japan by 2032.
Economic Reforms - Fiscal
• Rationalization of tax structure – both direct and indirect
• Progressive reduction in peak rates
o Peak Customs duty reduced to 15%
o Corporate Tax reduced to 30%
o Customs duties to be aligned with ASEAN levels
• Value Added Tax introduced from 1st April 2005o only 6 states left
• Fiscal Responsibility & Budget Management Act, 2003
o Revenue deficit to be brought to zero by 2008
Economic Reforms - Liberalisation of
Investment & Trade Policies
• Industrial Licensing
o
Progressive movement towards delicensing and deregulation
• Licensing limited to only 5 sectors (security, public health & safety
considerations)
• Foreign Investment
o
o
o
Progressive opening of economy to FDI
Portfolio investment regime liberalised
Liberal policy on technology collaboration
• Trade Policy
o
Most items on Open General License, Quantitative Restrictions
lifted
• Foreign Trade Policy seeks to double India’s
share in global merchandise trade in 5 years
Economic Reforms - Exchange
Control & Taxation
Exchange Control
• All investments are on repatriation basis
• Original investment, profits and dividend can be freely
repatriated
• Foreign investor can acquire immovable property
incidental to or required for their activity
• Rupee made fully convertible on current account
Taxation
• Companies incorporated in India treated as Indian
companies for taxation
• Convention on Avoidance of Double Taxation with 65
countries
Manufacturing Competitiveness
‘Made in India’
• Second most attractive destination for manufacturing
o
AT Kearney’s FDI Confidence Index 2004
• Indian industry globally competitive in a wide range of
manufacturing skill-intensive products:
o
Apparels, electrical and electronics components; speciality
chemicals; pharmaceuticals; etc.
• Automotive components: Major MNC’s & their OEMs
sourcing high-quality components from India
o
Volvo, GM, GE, Chrysler, Ford, Toyota, Unilever, Cliariant,
Cummins, Delphi
• Indian companies now having manufacturing presence in
many countries
o
Over 55% of approved outward investment by India companies
in manufacturing activities
Evolution of FDI Policy
2000-05
More sectors opened ; Equity caps raised in many other sectors
Procedures simplified
2000
Up to 100% under Automatic Route in all sectors except a
small negative list
1997
Up to 74/51/50% in 112 sectors under the
Automatic Route 100% in some sectors
1991
FDI up to 51% allowed under the
Automatic route in 35 Priority sectors
Pre 1991 Allowed selectively up to
40%
FDI Policy Liberalization
Investing in India – Entry Routes
Investing in India
Automatic Route
General Rule
No prior permission
required
Inform Reserve Bank
within 30 days of
inflow/issue of shares
Prior Permission
(FIPB)
By Exception
Prior Government
Approval needed.
Decision generally
within 4-6 weeks
FDI Policy Initiatives : 2000-2004
• New sectors opened to FDI
o
o
o
to 26% divestment in 5 years Defence production, Insurance,
print media - up to 26%
Development of integrated townships up to 100%
e-commerce, ISP with out gateway, voice mail, electronic mail,
tea plantation -100% subject
• FDI equity limits raised
o
o
o
o
Private sector banks raised from 49% to 74%
Drugs and pharmaceuticals from 74% to 100%
Advertising from 74% to 100%
Private sector refineries, Petroleum product marketing,
exploration , petroleum product pipelines – 74% to 100%
• Procedural simplification
o
Issue of shares against royalty payable allowed
Recent Initiatives : June 2004 onward
• FDI in domestic airlines increased from 40% to 49%.
Automatic route allowed
• FDI up to 100% allowed under the automatic route in
development of townships, housing, built up
infrastructure and construction development projects
• Foreign investment limit in Telecom services increased
to 74%
• FDI and portfolio investment up to 20% allowed in FM
Broadcasting. Hitherto only Portfolio investment was
allowed.
• Transfer of shares allowed on automatic route in most
cases
• Fresh guidelines for investment with previous joint
ventures
• A WTO (TRIPs) IPR regime compliant in position since
2005 – Patents Act amended to provide for product
patent in pharma and agro-chemicals also.
Policy on FDI
• FDI up to 100% allowed under the ‘Automatic
Route’ in all activities except for
o
o
Sectors attracting compulsory licensing
Transfer of shares to non-residents (foreign investors)
o
o
o
o
In Financial Services, or
Where the SEBI Takeovers Regulation is attracted
Investor having existing venture in same field
Sector specific equity/route limit prescribed
sectoral policy
under
• Investments made by foreign investors are given
treatment similar to domestic investors
Main Sectors with
FDI Equity/Route Limit
FDI equity limitAutomatic route
•
•
•
•
•
•
Insurance – 26%
Domestic airlines – 49%
Telecom services- Foreign
equity 74%
Private sector banks- 74%
Mining of diamonds and
precious stones- 74%
Exploration and mining of coal
and lignite for captive
consumption- 74%
Corrected as of December ‘05
FDI requiring prior
approval
•
•
•
•
•
•
•
•
Defence production – 26%
FM Broadcasting - foreign
equity 20%
News and current affairs- 26%
Broadcasting- cable, DTH, uplinking – foreign equity 49%
Trading- wholesale cash and
carry, export trading, etc.,
100%
Tea plantation – 100%
Development of airports- 100%
Courier services- 100%
Foreign Technology
Collaboration Policy
• Foreign technology agreements also allowed
under Automatic route:
o
o
o
Lump-sum fees not exceeding US$2 Million
Royalty @ 5% on domestic sales and 8% on exports,
net of taxes
Royalty up to 2% on exports and 1% also permitted
for use of Trade Marks and Brand name, without any
technology transfer
• Wholly owned subsidiaries can also pay royalty
to their parent company
• Payment of royalty without any restriction on the
duration allowed.
India: FDI Outlook
• 2nd most attractive investment destination among
the
Transnational
Corporations
(TNCs)
UNCTAD’s World Investment Report, 2005
• 3rd most attractive investment destination – AT
Kearney Business Confidence Index, 2004
o
o
Up from 6th most attractive destination in 2003 and 15th in 2002
2nd Most attractive destination for manufacturing
• Among the top 3 investment ‘hot spots’ for the
next 4 years
o
UNCTAD & Corporate Location – April 2004
• Most preferred destination for services - AT
Kearney’s 2005 Global Services Location Index
(previously Offshore Location Attractiveness Index)
India’s Competitive Advantage
Human Capital
• India’s competitive edge - its highly-skilled manpower
and entrepreneurial expertise
o
o
o
o
o
o
Over 380 universities (11,200 colleges)
1500 research institutions
Over 200,000 engineering graduates
Over 300,000 post graduates from non-engineering colleges
2,100,000 other graduates
Around 9,000 PhDs
• Knowledge workers in software industry increased from
56,000 in 1990-91 to over 1 million by 2004-05;
• 54% of India’s population under 25 years of age
• India would continue to be surplus in working population
for a long-time
o
Would contribute 25% to the additional working population globally over
the next 5 years.
India’s Competitive Strengths
HRD Contd.
Rank out of 102 countries
• Availability of scientist and engineers
3
• Quality of management schools
8
• Quality of scientific research institutions
20
• Quality of educational system
36
IT Advantages
•
IT- ITES Exports
In US $ Billion
IT –ITES Industry
o
20
o
17.2
18
16
•
14
12.8
High quality standards
o
12
10
10
o
8
8
6.2
o
6
Exports US$17.2 billion in 200405, growth of 34% over previous
year
2008 exports target : US$60
billion, to be 35% of India’s total
exports
76 SEI/CMM level 5 companies,
two third of world’s total, are
Indian
Over 250 of the Fortune 500
companies are clients of Indian
firms
R&D base of over 100 FORTUNE
500 companies
4
•
2
Investment Opportunities
o
0
o
2000-01
2001-02
2002-03
2003-04
2004-05
Collaborative ICT research
Joint Software development in a
variety of applications
Recent Infrastructure Initiatives
• National Highway Development Programme to develop
over 24,000 km of highways
o
o
o
Golden Quadrilateral
NSEW Corridor
Links to ports and State capitals
• Modernisation of airports
o
Metro and other airports
• Development of ports with private sector
• The Electricity Act, 2003 provides the framework for
development of power sector
• ‘Bharat Nirman’ Programme to develop rural
infrastructure at an estimated cost of Rs. 1,74,000 crore
(~US$40 billion)
• Jawhar Lal Nehru Urban Renewal Mission –Rs. 100,000
crore (US$22 billion)
• Country wide rural connectivity programme to link all
unconnected village having population of 500 with fair
weather road undertaken
Telecommunications
80
•
Among the fastest growing telecom
markets
o
550,000 km of optical fibre cable
laid
•
2 million Cellular phones added every
month
o
Among the lowest mobile tariff in
the world
•
Share of private sector 50%
•
Tele-density of 10.66, expected to be
20 in next three years
•
New Broad Band Policy announced:
o
690,000 connections since April
2005
o
Internet subscribers 6 million
(March 05)
•
Investment Opportunities
o
Setting up manufacturing facilities;
o
Supply of hand sets and
equipments
o
Telecom & Value added service.
70
No. in million
60
19.25
50
19.5
40
30
17.7
20
10
2.4
5
3.1
5.5
2001
2002
1.5
0
1.6
2000
48.7
28.2
10.5
2003
2004
2005
(up to
Oct.)
Roads
• Policy
o
o
FDI up to 100% is permitted for construction and
maintenance of roads, highways, vehicular bridges,
toll roads, vehicular tunnels
Ten year tax holiday for road and highway projects
• Recent Initiatives
o
o
Existing road network of 3.3 million kilometers
24,000 km of Highways being developed under
National Highway Development Programme
o
o
o
billion envisaged Golden Quadrilateral : 5846 kms- 5000 kms
completed
NSEW Corridor: 7300 kms – 784 kms completed, 3691 kms
under implementation
Investment US$20 billion
• Investment Opportunities
o
o
Projects for 12,000 km would be on offer
Many more opportunities in the States
Power
• Policy & Incentive
o
Share of Installed Capacity
Nuclear
2%
Hydro+Wind
22%
o
• Institutional Reforms
o
o
Thermal
76%
FDI up to 100% is permitted on
the automatic route in all
segments except atomic power
Ten-year tax holiday for
generation and distribution or
transmission and distribution of
power
The Electricity Act 2003 allows
trading in power and provides for
further deregulation;
Independent Regulator in most
states
• Investment Opportunities
o
o
o
Additional capacity required
100,000 MW till 2012
Investment US$120 billion needed
Financial closure of over 6000
MW capacity achieved in last one
year
Ports
• Policy & Incentives
o
o
FDI up to 100% permitted for construction and
maintenance of ports and harbors.
Ten year tax holiday
• Public-private partnership
o
o
o
12 major ports, 185 minor ports
14 private/ captive projects with investment of US$
600 million completed
24 projects with investment of US$1.6 billion under
implementation/award
• Investment requirement of US$22 billion to
develop maritime sector
o
o
Ports & Shipping
Inland waterways
Special Economic Zones
• Policy
o Duty free zones, deemed foreign
territories
New Law on
SEZ enacted
o FDI up to 100% permitted in
almost all manufacturing activities
o Transfer of goods from DTA to
SEZ treated as exports,
o Units to be net foreign exchange
earner within 5 years. No export
commitments
o No limits on DTA sales
• Incentives
o For developer: Income tax exemption
for a block of 10 years in 15 years
o For units: 100% Income Tax
exemption for first 5 years, 50% for
next 5 years and 50% of the ploughed
back export profits for next 5 years
o Exemption from indirect taxes; excise,
sales, services tax, etc.
o Can be set up in the public,
private or joint sector
o Freedom to raise ECB with out any
maturity restrictions
o Single Window Clearance
Cont………
Special Economic Zones
• 11 Special Economic Zones are functional
o
o
o
SEEPZ Mumbai, Kandla, Cochin, Chennai,
Visakhapatnam, Falta, NOIDA, Surat, Salt Lake,
Indore and Jaipur
Over 800 functional units employing over 100,000
persons
Exports of US$4 billion in 2004-05
• 42 new Special Economic Zones have been
approved and are under establishment
o
Many have participation with State Governments and
Private Sector
• Major Industries in Special Economic Zones
o
Gems & Jewellery, Electronics & Hardware, Software,
Textile & Garment, Engineering Goods, Sports
Goods, Leather Products, Chemicals & Allied
Products
Public Private Partnership
• Infrastructure projects might not be financially viable on
their own;
• Public Private Partnership to bring in private sector
resources and techno-managerial capabilities;
• ‘Viability Gap Funding’ for
o
o
o
o
Roads, railways, seaports, airports;
Power
Water supply, sewerage, solid waste disposal in urban areas;
International convention centres.
• Funding in the form of capital grant, Operation &
Management support, interest subsidy, etc.
• Support linked with predefined milestones.
Food Processing
• Third largest producer of food items
o
o
o
Largest milk producer
Largest livestock population;
2nd largest in fruits & vegetables
• Opportunities in food processing sector
o
o
o
50% of household income spent on food items
With increasing income levels and urbanisation fast growth in demand
of processed food expected; over 250 million strong middle class
Low levels of value addition in food sector: only 7%
• New Integrated Food Law being enacted
• Investment of US$ 28 billion required to raise food
processing from 2% to 8-10%.
• Investment opportunities in
o
o
Processing of fruit & vegetable, meat, fish & poultry, milk products,
packaged food & drinks.
Establishing infrastructure, cold chain, etc.
Incentives for the Development of
Industrially Backward Areas
• A special package of incentives to promote
industrialization of industrially backward regions
o
North Eastern states, Skim, Jammu & Kashmir,
Uttaranchal and Himachal Pradesh
• Incentives
o
o
o
o
100% Income Tax Exemptions for 10 years
Excise Duty Exemptions for 10 years
Transport Subsidy for transportation of raw material
and finished products,
Investment Subsidy (50-90%)
Governance and Regulatory System
• Central, State and Local levels of Government with
their specified powers and responsibilities seen as
complicated in regulatory administration by investors
• 11.9% of Senior Management’s time spent in dealing
with Government agencies
(Source: World Bank’s Report - India Investment Climate
Assessment, 2004)
• World Bank’s Report ‘Doing Business in 2006’
o
o
o
71 days required to set up a Company and start business –
Incorporation of Company and PAN/TAN allotment taking most
time
Paying taxes: 59 transactions taking 264 hours in a year
Closing a business: time taken 10 years
Governance - Initiatives
• Major e-governance initiatives undertaken at Central and
State level
• National e-Governance Action Plan
o
o
o
Projects being taken up in Mission mode at Central and State
level.
Integrated services projects for services across Departments.
MCA-21 - Ministry of Company Affairs, to cover all Registrar of
Companies by June 2006
• e-Biz project being taken up by the Department of IPP
o
o
o
To set up a web enabled portal to provide for the services at the
Central, State and Local level during the entire life cycle of
business
To begin with a pilot project covering 25 services in four states
Project capable of rapid upscaling to cover other services and
extend to other areas
• Right to Information Act for greater transparency in
public administration
Investment Opportunities
• Development and management of infrastructure
• Food processing, including logistic and support
services, development of cold chain
• Manufacturing – relocation into India
• R&D – leveraging on abundant skilled
manpower
• IT & ITES, Software as well as hardware
DISCUSSION POINTS
1. General Business Tips
2. India, and Investment Potential in
India
3. Foreign Lawyers and Legal Services in
India:
o Frequently Asked Questions
o Judgment of Bombay High Court
Foreign Lawyers and Legal Services in
India: Frequently Asked Questions
1.Can I give advice on USA legal issues to Indian
companies?
No. (see below)
2.Can I give advice to Indian companies in India on
Indian issues?
No. Please refer to the attached extract of a Bombay High Court
Judgment attached
3.If I have an associate law firm in India, what can
my partners do or not do when they come to
India?
They can only provide inputs to the Indian firm. They can be
employed by an Indian firm. They can (if qualified) enroll but that
is a difficult process requiring eligibility, qualifications and
Cont………
reciprocity.
Foreign Lawyers and Legal Services in
India: Frequently Asked Questions
4. Can I set up a rep. office in India? If yes, What
am I allowed to do and not do?
Yes, but not much at all. Liaison and no commercial
business (same judgment).
5. Is my legal degree recognised in India?
No. In most cases of US degrees. Some may be
recognised (like Oxford degree) but you’ll need to check
with the Bar Council of Delhi which ones are covered (if
any) from the U.S.
6. What do I have to do be a solicitor in India?
This is a complex question. Probably not allowed.
Cont………
Foreign Lawyers and Legal Services in
India: Frequently Asked Questions
7. What do I have to do if I wish to appear in
an Indian court?
Enroll as an advocate.
8. How is the law on the above likely to
change and when?
Some change and a minor easing is likely in this year or
over the next years but it is likely to be cosmetic.
Extract of a Bombay High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORIGINAL SIDE
WRIT PETITION NO. 1526 OF 1995
Lawyers Collective
…Petitioner
Versus
Bar Council of India & Ors.
OCTOBER 4 & 9, 1995
"In our view, considering the aforesaid quotations from the New York Judiciary
Law and Halsbury’s Laws of England, it is apparent that the phrase “to
practicethe profession of law” would be wide enough which would include
not only appearance before the Court but also to carry on such activities
which are specifically provided in the aforesaid paragraphs which provide
for restrictions on unqualified persons against drawing or preparing any
instrument, agreement, power of attorney or such other things. If that was
not so, there was no necessity of restricting it by specific regulations."
Cont………
Extract of a Bombay High Court
Judgment
The Court quoted with approval:
"As there is no direct decision on the question involved, the learned Counsel
appearing for the Petitioner has brought to our notice a decision rendered by the
Court of Appeals of New York. In the Matter of New York County Lawyers
Association v. Lorenzo J. Roel, (165 N. Y. S. 2d 31, page 14,) wherein the Court
has interpreted Section 270 of the Penal Law which, inter alia, provides as
under:“It shall be unlawful for any natural person to practice … as an attorney-at-law … or
to hold himself out to the public as being entitled to practice law as aforesaid, or
in any other manner, … or advertise the title of lawyer … in such manner … or
advertise the title of lawyer … in such manner as to convey the impression that
he … conducts or maintains a law office … without having first been duly and
regularly licensed and admitted to practice law in the courts of record of this
state, and without having taken the constitutional oath.”
Cont………
Extract of a Bombay High Court
Judgment
In that case it was contended by the appellant that his practice is restricted to
Mexican law and he does not practice law in New York since he only
gives advice and prepares instruments based on Mexican law and
Mexican law is not “law” in New York. Therefore he is not covered by
Section 270 of the Penal Law. The Court negatived the said contention
by holding that whether a person gives advice as to New York law.
Federal law, the law of a sister State, or the law of a foreign country, he is
giving legal advice. It was further held that when legal documents are
prepared for a layman by a person in the business of preparing such
documents, that person is practicing law whether the documents be
prepared in conformity with the law of New York or any other law. The
Court further observed that to hold otherwise would be to state that a
member of the New York Bar only practices law when he deals with local
law. It was further observed: “A foreign lawyer who is familiar with the law
of the country in which he is a lawyer is in a similar position. He is a
specialist in a particular field of the law, but is nevertheless a layman in
this state when he is not a member of the Bar here”. The Court held that
protection of the members of the lay public of State, when they seek legal
advice – and that was what defendant purported to furnish – was the
basis of the requirements of licensing of attorneys by the State.
Cont………
Extract of a Bombay High Court
Judgment
From the aforesaid discussion, the submissions made before this Court and
the affidavit in reply filed on behalf of Respondent Nos. 12, 13 and 14, prima
facie, it appears that the activities mentioned above carried on by
Respondent Nos. 12 to 14 would amount to practising the profession of law.
As stated above, Respondent Nos. 12 to 14 have established liaison offices
in this country; they are carrying on work of drafting documents, reviewing
and providing comments on documents, conducting negotiations and
advising clients on international standards and customary practice relating
to clients transactions; gathering information from prospective clients in
India and conducting market research to assess the feasibility of providing
legal services in India.
If, therefore, the said activities are held to be not covered by the phrase “to
practice the profession of law”, then the whole objects of the Advocates Act
would be frustrated, in the sense that there would not be any disciplinary
control nor these activities can be controlled by any method.
" [End of quote]
We gratefully acknowledge the help given by the
Department of Industrial Policy and Promotion - Ministry of
Commerce, Government of India, New Delhi
THANK YOU
For further Information, Contact:
Gautam Mahajan
President - Inter-Link Services Pvt. Ltd.
K-185 Sarai Jullena
New Delhi, India 110025
Tel: +91-11-26922006, 26831226; Fax: +91-11-26929055;
E-mail: [email protected] / [email protected]
Website: www.interlinkindia.net