05 April 19 2007 Business Development 160407

8/8/2019 05 April 19 2007 Business Development 160407

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PRESENTATION BY

Manishi Pathak

KOCHHAR & CO.AprilApril 19, 2007

Paris, France

DELHI OFFICES-454, GREATER KAILASH-II

NEW DELHI - 110 048TEL: (91-11) 4111 5222, 2921 5477

FAX: (91-11) 2921 9656, 2921 4932EMAIL: [email protected]

BANGALORE OFFICE202, PRESTIGE MERIDIAN-2

BANGALORE - 560 001Tel.: (91-80) 4112 4994,

411 4995Fax. (91-80) 4112 4998

EMAIL:

[email protected] OFFICE

SUITE #503, 5TH FLOORRAHEJA TOWERS, 177

ANNA SALAICHENNAI - 600 002

TEL: (91-44) 2860 5775 -76

Fax.: (91-44) 2860 7588EMAIL:

[email protected]

MUMBAI OFFICE17TH FLR, NIRMAL BUILDING

NARIMAN POINTMUMBAI - 400 021

TEL: (91-22) 6637 0031, 66559701

FAX: (91-22) 6655 9705EMAIL:

[email protected]

USAKOCHHAR & CO. LLC

300 VILLAGE GREEN CIRCLESUITE 201

SMYRNA / ATLANTA , GA30080Phone: +1 770.434.0715Fax: +1 770.438.6172

EMAIL:[email protected]

GURGAON OFFICE2ND FLOOR, TOWER-A

TECHNOPOLIS BUILDINGMAIN SECTOR ROAD

SECTOR 54GURGAONHARYANA

Manishi [email protected]


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DOING BUSINESS IN INDIADOING BUSINESS IN INDIA

This entire presentation provides only an overview and should not beThis entire presentation provides only an overview and should not beconstrued as a legal representation and or advice.construed as a legal representation and or advice.


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A gateway into IndiaA gateway into India


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INDIA IS NO LONGER, ONLY KNOWN AS THE LAND OF SNAKE

CHARMERS AND TAJ MAHAL


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INDIA TODAY IS ALSO SYNONYMOUS TOINDIA TODAY IS ALSO SYNONYMOUS TO

OUTSOURCING, etcOUTSOURCING, etc


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INDIA MOVES INTO THE BIG THREEINDIA MOVES INTO THE BIG THREE

The Largest Economies in 2050

Source: Goldman Sachs

Source: Goldman Sachs Model Projections

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Ch US In Jpn Br Russ UK Ger Fr It

India$27 Trillion

by 2050

GDP(US$ trillion)


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INDIA AT A GLANCEINDIA AT A GLANCE

Demographics:

7th largest country in the world and 2nd largest in Asia with an area of

3.29 million sq. kms

29 States and 6 Union Territories

Population - 1.1 billion (approx.)

18 major languages spoken in India and over 1600 regional dialects.

English is the second major language spoken in India and is the

preferred business language. English is also the official language of the

judiciary

India has approx. 45,974 newspapers, including 5,364 daily newspapers

published in over 100 languages

Political set up:

Worlds largest practicing democracy

Govt. set to complete 5 yrs


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ECONOMY SNAPSHOTSECONOMY SNAPSHOTS

2 9 3 2 3 84 2

5 47 4

1 1 91 4 0 18 0

0

5 0

10 0

15 0

20 0

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

F o re x R e s e r v e s

4th largest economy (in PPP terms)

9.8

5.1

3.2

2.9 2.

1 1.4

1.4

1.4

0

2

4

6

8

10

1

2

US

Ch

Jap In

d

Ger

It

Uk F

r

(US$

tn)

Source: World Bank

Strong foreign exchange reserves

Source: www.indiastat.com

GDP Trend

0

1

2

3

4

5

6

7

8

9

10

2003 2004 2005 2006 2007

GDP


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MERGERS & ACQUISITIONS TRENDS - 2006MERGERS & ACQUISITIONS TRENDS - 2006

Source : Grant Thornton

Cross Border & Domestic deals

Value (USD mn)

2005 2006

Domestic 6848..01 4990. 87

Inbound 5173. 93 5399. 75

Outbound 4298. 52 9914 .15

Cross-Boarder 9472. 45 15313 .90

Total 16320.46 20304.77

Volume

Domestic 151 214

Inbound 56 76

Outbound 136 190

Cross-Boarder 192 266

Total 343 480

Average (USD mn)

Domestic 45..35 23 .32

Inbound 92. 39 71 .05

Outbound 31. 61 52.18

Cross-Boarder 49. 34 57.57

Total 47. 58 42.30


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MERGERS & ACQUISITIONS TRENDS - 2007MERGERS & ACQUISITIONS TRENDS - 2007

The M&A activity in the year 2007 has commenced with a total value ofabout USD 37 billion, which is about twice the deal value for the year 2006

The first 2 months of 2007 have witnessed 102 M&A deals with a totalvalue of about $ 36.80 billion as against 480 deals with a value of $ 20.30billion in 2006

Inbound cross border deals 21 with a value of $ 15.18 billion andoutbound cross border deals 40 with a value of $ 21 billion (about 41domestic deals)

Significant Outbound acquisitions: By Indian companies in the first 2months of 2007, include, acquisition of Corus, an Anglo-Dutch steelmaker by Tata Steel for $ 13.65 billion, Hindalcos acquisition of Novelisfor nearly US$ 6 bn and Aban Lloyds stake in Sinvest ASA of 39.50%

SignificantInbound acquisitions: Vodafones acquisition of Hutchs stakein Hutchinson Essar and Mittal Investments stake in Guru Gobind SinghRefineries


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ADVANTAGE INDIA

GLIMPSE OF REFORMS

S.No Particulars 1991-2000 2000-2007

1 Industrial Licensing Compulsory Industrial Licenses required for 18industries

Economy opened for liberalization

Now Compulsory licensing required onlyfor 5 industries

2. Exchange ControlRegulations

Under the Foreign Exchange Regulation Act(FERA), Reserve Bank of India (RBI) approval

required for foreign exchange transactions

Dividend Balancing introduced

INR not convertible

Foreign Exchange Management Act(FEMA) replaced FERA

Dividend Balancing abolished

INR progresses towards full convertibility

3. FDI Policy Controlled flow of FDI in India.

100% FDI allowed only in limited sectors

India has the most liberal and transparentFDI policy among the emerging economies

FDI upto 100% allowed, without any priorapproval in nearly all sectors.


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ADVANTAGE INDIA

4. Fiscal Reforms The peak rate of customs duty initially onseveral items was over 200% in 1991. Later onreduced to 65% in 1994 and 40% in 1999.

Corporate tax rates prevailed @ 35% fordomestic companies and 48% for foreign

companies in 1999

Peak Customs duty reduced to 10%

Customs duties to be aligned withASEAN levels

VAT introduced

Revenue deficit to be brought to zeroby 2008

Corporate Tax rate reduced to 30% fordomestic companies and 40% forforeign companies

5. Trade Policy Trade policy was characterized by high tariffs

and import restrictions.

Limited import of consumer goods subject toimport licenses

Average tariff rates gradually declined fromapprox. 85% in 1993-94 to 25% in 2002-03

Most items are now on Open General

License (OGL)

The average tariff rate is broughtdown from more than 16 % in 2002-03to 15 % by 2006-07

GLIMPSE OF REFORMS


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ADVANTAGE INDIALarge and Expanding Domestic market, emerging middle class Large and growing population of over 1 billion people of which around 300 million are

estimated to be the middle class consumers, who have rapidly growing purchasing power

The domestic demand for goods and services is set to double over the next ten (10) years incomparison to the period from 1998 to 2007

Young and highly skilled human capital

Large pool of highly skilled, low cost and English speaking labor

54% of the population is less than 25 years of age

As per World Economic Forum (WEF) report titled Global Competitiveness Report 2005-06,India will have a relatively lower number of elderly people by 2025 in comparison to affluentcountries (Approximately 2/3rd of China's aggregate population will be in the 65+ age group)

Pool of 23 million professionals doctors, graduates, masters and engineers increasing bynearly a million every year

As per the above WEF report, India ranks # 1 in the availability of scientists and engineers


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ADVANTAGE INDIA

Large Research & Development capabilities

More than 100 of the Fortune 500 companies such as Microsoft, Google, Intel, Yahoo, IBM

etc., and many pharma companies have established R&D Centres in India

IT &ITES Industry likely to maintain high growth and is expected to generate revenues ofUSD 62 billion by 2008 and USD 148 billion by 2012 (NASSCOM-KPMG estimates)

According to market analysts, the Indian biotech market, estimated at USD 0.5 billion in2003 is expected to grow to around USD 5 billion by 2010

Rising Disposable Income

Per capita income has grown at 13% compounded annual growth rate over the last 10 years

Peak personal income tax rates are down from 50% to 30%


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ADVANTAGE INDIA

Rising Affordability

Urbanization: Shift from low productive farm jobs to manufacturing and services Rising per capita income, improved affordability & changing lifestyles

Under leveraged consumers and benign interest rates are further aiding the consumption

By 2009-10, over 500 million Indians are expected to have a household income of

< USD 10,000 per annum (in PPP terms)

Abundant natural resources and raw materials

Indias reserves of coal, iron ore, manganese, bauxite and chromium are among the largestin the world

Though an importer of petroleum and natural gas, India has abundant coal reserves and alarge untapped hydroelectric power potential of an estimated 150,000 MW

India is the worlds largest producer of milk, sugarcane and tea and the second largest

producer of rice, fruit and vegetables


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EVOLUTION OF FOREIGN DIRECTEVOLUTION OF FOREIGN DIRECT

INVESTMENT (FDI) POLICYINVESTMENT (FDI) POLICY

Pre 1991

1991

1997

2000

2000-07

Allowed selectively up to40%

Up to 74/51/50% in 112 sectors under the

Automatic Route, 100% in only a few sectors

Up to 100% under Automatic Route in all sectors excepta small negative list

More sectors opened: Equity caps raised in many other sectors.Procedures simplified

FDI Policy Liberalization

FDI up to 51% allowed under theAutomatic Route in 35 Priority sectors


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CURRENT FDI POLICY

INVESTMENT IN INDIA

AUTOMATIC

ROUTE

GOVERNMENT

APPROVAL ROUTE

In cases of investments not

eligible under Automatic

Route

Investment is subject to

eligibility conditions under

FDI Policy such as

prescribed sectoral equity

caps

Except in certain cases, all

foreign investments eligible

under this route

Investment is subject to

eligibility conditions under

the FDI Policy such as

prescribed sectoral equity

caps, etc.


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CURRENT FDI P LICY


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CURRENT FDI P LICYAutomatic RouteAutomatic Route

FDI up to 100% is allowed under Automatic Route in alactivities except the following which require prior approval of th

Government:

All proposals falling outside the prescribed sectoral equity caps

Proposal in which the foreign investor has an existing financiaor technical collaboration in India in the same field. This irestricted by Press Note 1/2005

All proposals that require Compulsory Industrial License

Manufacture of items exclusively reserved for small scale sectowith more than 24% FDI


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CURRENT FDI POLICY

FDI NOT ALLOWEDFDI NOT ALLOWED

No FDI permitted in the following sectors:

Retail trade (except single branded product

retailing)

Atomic energy

Gambling & bettingLottery businessAgricultural or Plantation activities (except tea

plantations, horticulture, cultivation of

vegetables etc. under controlled conditions)Real Estate business or construction of farm

houses (except development of townships, hotels

etc.)

Trading in transferable development rights


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CHANGES PROPOSED TO FDI POLICY

Insurance Sector

To increase FDI in Insurance sector from 26% to

49%

Asset reconstructions companies To allow FDI in Asset Reconstruction Companies

beyond 49%

Petroleum Companies

To remove requirement of 26% divestment in

Indian subsidiaries in five (5) years


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CHANGES PROPOSED TO FDI POLICY

Aviation Sector

To increase FDI beyond 49%

Equity cap to be raised to 100% for seaplanes, helicopters and for

setting up maintenance, repair and overhaul (MRO) facilities

Equity cap to be raised to 74% for cargo operations, charters and

other non-scheduled operations

Organized Retail Sector

To increase FDI cap beyond 51% in single-brand retail

Currently no FDI is permitted in multi-brand product retail

To consider FDI in multi-brand retail of sports goods, stationery

and electronics

CURRENT FDI POLICY


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CURRENT FDI POLICY

FOREIGN TECHNOLOGY COLLABORATIONPOLICY

Foreign Technology Agreements are allowed under theAutomatic Route subject to the following conditions:

Payment of lump sum fee not exceeding US$2 million

Royalty @ 5% on domestic sales and 8% on exports,net of taxes

No restriction on the duration of royalty payments onall foreign technology collaboration agreements

Proposals falling outside the above parameters requireprior Government approval


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CURRENT FDI POLICY

TRADE MARK COLLABORATION POLICY

Trade Mark Collaboration Agreements allowed under the

Automatic Route subject to the following conditions:

Royalty upto 2% on exports and 1% on domestic salespermitted for use of trademarks and brand name, withouttechnology transfer

No restriction on the duration of the royalty payments onall foreign technology collaboration agreements coveredunder automatic route

Proposals falling outside the above parameters requireGovernment approval

SPECIAL INVESTMENT OPPORTUNITIES


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SPECIAL INVESTMENT OPPORTUNITIESSpecial Economic Zone (SEZ)

POLICY: Duty free zones, deemed foreign

territories

100% FDI under automatic

route permitted in almost all

manufacturing activities

Transfer of goods fromDomestic Tariff Area (DTA) to

SEZ treated as exports

Units required to be net foreign

exchange earners within 5 years.

A SEZ could be set up in the

public, private or joint sector

INCENTIVES SEZ units eligible for Income

Tax holidays for 15 years (100%

exemption for first five years and50% exemption for the next fiveyears)..

SEZ developers operatingnotified SEZs before March 31,2006 are eligible for tax holidaysfor 10 years and not required topay Minimum Alternate Tax

Duty free import andprocurement of capital goods,raw materials, consumables andspares

Exemption from payment ofCentral sales tax

Exemption from service tax forproviding services to SEZ units

Full freedom of subcontracting Facility to retain 100% of the

foreign exchange receipts in theexport earners foreign currency(EEFC) account

No routine examination ofcustoms


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DOING BUSINESS IN INDIA

Procurement of approval for proposed name of company fromthe concerned Registrar of Companies (ROC)

Preparation and submission of proposed companys MOA &AOA along with Forms 1, 18 & 32

+relevant documents

Registration of Company upon receipt of Certificate of Incorporation from the ROC

NOTE: A private limited company could commence business immediately upon receipt of

Certificate of Incorporation. However, a public company can commence business only after

receiving the Carry on Business License from the ROC

INCORPORATION OF AN INDIAN COMPANY


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BUSINESS FORMS

As an un-incorporated entity

Branch Office Liaison Office Project Office

As an incorporated entity

Joint Venture Wholly Owned subsidiary

Other modes Distribution/Agency Arrangements

Franchising


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UNINCORPORATED ENTITYBRANCH OFFICE

Regulatory Framework:

Prior approval of RBI Required No approval required for a Banking company and Insurance company if prior approval

obtained under Banking Regulation Act or Industries Regulation Development Act (IRDA)

No approval required to establish a branch office in SEZ to undertake manufacturing andservices activities

Remittance of winding up proceeds permitted subject to prior approval of RBI

Treated as an extension of foreign corporation and therefore taxed at the same rates as a

foreign company

Permitted Activities Export/Import of goods

Rendering professional or consultancy services

Carrying out research work in which parent company is engaged

Promoting technical or financial collaboration between Indian companies and the parent or

overseas group company Representing the Parent company in India and acting as buying/selling agent in India

Rendering services in IT and development of software in India

Rendering technical support to products supplied by parent/group companies

Undertaking activities of Foreign airlines/shipping companies

Manufacturing by a branch located in SEZ


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UNINCORPORATED ENTITY

LIAISON OFFICE

Regulatory Framework Prior approval of RBI required Approval is initially granted for 3 years. Can be extended subsequently with

the permission of RBI The entire expenses of a liaison office are required to be met exclusively out of

the funds received from abroad through normal banking channels.

Remittance of winding up proceeds permitted subject to prior approval of RBI No Income-Tax applicable

Permitted Activities Only to act as a communication channel between parent company and Indian

companies

Representing in India the parent company/group companies Promoting export/import from or to India Promoting technical/financial collaborations between parent/group companies

and companies in India


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..UNINCORPORATED ENTITY

PROJECT OFFICE

Regulatory framework

Prior approval of RBI not necessary

Contract to execute a project in India must exist

The project should have been approved by an appropriate authority

The project should be financed from abroad Remittance of profits earned permitted

Remittance of winding up proceeds permitted subject to prior approval of RBI

Treated as an extension of foreign corporation and therefore taxed at the same rates as

foreign company.

Permitted Activities

Only activities relating and incidental to execution of a project


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INCORPORATED ENTITYJoint Venture Can be entered into where 100% FDI permitted or where a cap exists in case of FDI.

Company can be incorporated as a private company or public company

No approval required for repatriation of dividends

Treated as a domestic company and therefore taxed at rates applicable to domestic companies

Wholly Owned Subsidiary

Established in sectors where 100% FDI is permitted

Company can be incorporated as a private company or a public company

WOS is preferred mode of establishing business as the foreign investor can exercise maximumcontrol

No approval required for repatriation of dividends

Treated as a domestic company and therefore taxed at rates applicable to domestic companies

BASIC COMPARISON BETWEEN PRIVATE


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BASIC COMPARISON BETWEEN PRIVATE

COMPANY AND PUBLIC COMPANY

S.NO PARTICULARS PRIVATE COMPANY PUBLIC COMPANY

1. Minimum number of shareholders 2 7

2. Maximum number of shareholders 50 Unlimited

3. Minimum number of directors 2 3

4. Maximum number of directors 12 12(can be increasedwith the

Governmentapproval)

5. Minimum paid up capitalrequirement

INR 100,000 (approx.US$ 2200)

INR 500,000 (approx.US$ 11000)

6. Right to transfer shares Restricted Unrestricted

7. Invitation to public to subscribefor shares

Not allowed Allowed

8. Invitation of deposits form

persons other than members,directors and their relatives

Not Allowed Allowed

COMPARATIVE SUMMARY OF BUSINESS FORMSCOMPARATIVE SUMMARY OF BUSINESS FORMS


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COMPARATIVE SUMMARY OF BUSINESS FORMSCOMPARATIVE SUMMARY OF BUSINESS FORMS

S.No. Particulars Liaison office (LO) Project Office (PO)/Branch Office(BO)

JV/WOS

1. Approvals Required Prior Approval of RBI Prior approval of RBI required for BO. Noprior approval required for PO, subject tofulfillment of certain conditions

If falls under Automatic route, only an intimation tobe given to RBI. Otherwise FIPB approval to beobtained

2. Operation Restrictions Limited Limited Unlimited as per charter documents and FDI Policy.

3. Operation Funds Local expenses can be met only outof inward remittances received formabroad through normal bankingchannels

Local expenses can be met out of inwardremittances or from local earnings

Funding may be through equity infusion orborrowings (local as well as overseas) or internalaccruals

4. Compliance (including

annual ) under CompaniesAct, 1956

Registration and annual filings of

accounts, etc.

Registration and annual filings of accounts,

etc.

Company to be incorporated under the Companies

Act, 1956. Substantial compliance requirementsincluding annual filings.

5. Annual compliance under FEMA

To file activity report, profit & lossaccount and balance sheet everyyear.

To file activity report, profit & lossaccount and balance sheet every year

To provide particulars of the transaction undertakenat the time of remittance (to the concerned banks inIndia)

6. Annual compliance under Income Tax Act, 1961

NIL income return to be filed

Withholding tax to be deducted andreturn to be filed on quarterly andannual basis

To file return of income in respect ofBO/PO operations.

Withholding tax to be deducted and returnto be filed on quarterly and annual basis

Effective tax rate is 42.23%. No further taxon repatriation

To file return of income on annual basis.

Effective tax rate is 33.99%. Dividend DT at the endof the Indian company is 16.995% on payment of

dividends.

7 Permanent Establishment Not regarded as PE in India under DTAA unless its activities couldheld it as engaged in commercialactivities

BO is regarded as PE in India of theforeign company under DTAA.

PO could be considered a PE in India

May not be considered as PE in India under DTAA.

8. Closure Prior RBI approval.

Certain procedures to be complied

with.

In case of BO prior RBI approval required.Certain procedures to be complied with.

In case of PO no RBI approval

Permission of High Court required. Closure is timeconsuming


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EASE OF DOING BUSINESS IN INDIA

Starting a Business

It now takes about 35 days to register a company in India as compared to 71 daysa year ago and 89 days in January 2004

Employing workers

India ranks 112th worldwide on the ease of employing workers

Registering Property

In India it can takes only 35 days to register property. India is placed among theupper half of South Asian Countries

Getting Credit

With a robust banking system, India ranks 65th on the ease of getting credit.Much higher than other South Asian Countries


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EASE OF DOING BUSINESS IN INDIA

Protecting Investors

Ranks 33rd worldwide. It beats the South Asia and East Asia average of 5

Paying Taxes

India ranks 158th on ease of paying taxes. Compared with other countries

outside the region, Indias tax regime is less burdensome. For e.g. in China,businesses spend 872 hours per year on complying with tax requirements, inBrazil, businesses are required to spend 2,600 hours per year, whereas inIndia, businesses spend 264 hours per year

Trading across borders

In India, it can take up to only 17 days to export and 22 days to import. Thisis at par with China, where it takes 18 days to export goods


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TAXATION REGIME IN INDIA

Direct Taxes

Income Tax

Personal Income tax

Corporate Tax

Dividend Distribution Tax

(DDT)

Fringe Benefit Tax (FBT) Capital Gains Tax

Wealth tax

Securities transaction tax

Indirect Taxes

Custom Duties

Service Tax Sales Tax/Value Added Tax

Central Excise Duty

State taxes


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PERSONAL INCOME TAX RATES

Individuals are liable to tax in India as under:

# Where the taxable income exceeds USD 22,200, a surcharge @ 10 percent would be

levied on the total tax payable

Income Slab Effective tax rate (includingsurcharge of 10% and

educational cess of 3%)

Up to USD 2,200( in case of women up to USD3000)

NIL

USD 2,200 to USD 3,300 (in case of women USD3000 to USD 3,300)

10.3%

USD 3,300 to USD 5,500 20.6%

USD 5,500 to USD 22,200 30.9%

Above USD 22,200 33.99% #

CORPORATE TAX RATES


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CORPORATE TAX RATES

Domestic company 33.99% (Income tax: 30% plus

surcharge: 10% plus cess: 3%)Foreign Company 42.23% (Income tax: 40% plus

surcharge: 2.5% plus cess: 3%)

Fringe Benefit Tax 33.66% (FBT: 30% plus cess: 3%)

Dividend Distribution Tax 16.995% (DDT: 15% plus surcharge:10% plus cess: 3%)


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DOUBLE TAXATION RELIEF

India has entered into DTAA with 69 countries including USA,

U.K., Japan, France, Germany, Singapore, Mauritius etc.

Statutory recognition has been given to Double TaxationAvoidance Agreements (DTAAs)

The tax payer has the privilege to avail provisions of either the

DTAA or domestic tax laws

For countries that have DTAAs with India, bilateral relief isavailable to a resident in respect of foreign taxes paid

LEGAL SYSTEM IN INDIA


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LEGAL SYSTEM IN INDIA

SUPREME COURT OF INDIAOriginal Jurisdiction

Appellate Jurisdiction

21 STATE HIGH COURTS

Appellate Jurisdiction

Writ Jurisdiction

Supervisory Jurisdiction

DISTRICT COURTS ANDSESSIONS COURTS

OTHER COURTSAND TRIBUNALS

Company Law Board

Central Administrative Tribunal

State Administrative Tribunal

Income Tax TribunalConsumer Courts

Labour Courts

CIVIL CRIMINAL

DIST. JUDGE/ADDL.DIST. JUDGE

CIVIL JUDGES

SESS. JUDGE/ADDL.SESS. JUDGE

METROPOLITAN

MAGISTRATE/

JUDICIAL MAGISTRATE


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INTELLECTUAL PROPERTY LAWS

Strong IP regime in India for Trade Marks,

Copyrights, Industrial Designs and Patents

IP laws are WTO compliant and conform to

international standards of TRIPS

Indian courts provide quick and adequate injunctive

relief against unauthorized use and/or infringement of

Trade Marks and other IP

PATENT DESIGN COPYRIGHT TRADEMARK


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What isprotected?

Functional features ofa process, structuralfeatures of a Machineor a manufactureditem, composition ofmatter producingsynergistic effects

Ornamentalpattern, outerdesign for articleof manufacture

Writings,photographs,music, labels,works of art,computerprogrammed,paintings,sculpture,drawing,engraving,

dramatic work,scenicarrangement, oracting form whichis fixed in writingor otherwise.

device, brand,heading, label,ticket, name,signature, word,letter, numeral,shape of goods,packaging orcombination ofcolors or anycombination

thereof .

Criteria forProtection?

New and nonobvious

New and notpublished

Originality Should be capableof identifying anddistinguishing themark.



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goods andservicesProprietor.Should not

conflict with aprior Registeredor pending mark.

How Rights

are obtained

An application with

a completespecification andclaims in theprescribed manner isto be made with theappropriate fee

An application in

the prescribedmanner is to bemade with theappropriate fee.

1. Automatic

upon creation.2. By applyingCopyright notice(c) 2004 (Year ofthe firstpublication) if

publicly

1. By Common

Law: Adoption &Use.

2. An applic-

ation in theprescribedmanner is to be

made with theappropriate fee tothe Registrar ofTrade Marks.



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distributed. Anapplication in theprescribed manner

is to be made withappropriate fee tothe Registrar ofCopyright

Marking Goods may be MarkedPatent No. (After Grant)

IND PAT No. -

Goods maybe markedDesign No.0000/year(After Grant).

2004 Use forRegistered TradeMark and forunregistered.


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Life 20 years from the

date of Patent (filingof completespecification),

10 years subject

to renewal for 5years only.

Valid for 60

years from dateof death ofauthor.

Common Law:

As long asproperty used as amark.Registration isperpetual subjectto renewal every

10 years.

Test ofinfringement

Making, using orselling Patentedarticle or composition

(not a drug) orcarrying on a processembodying theclaimed invention.

Designs whichlook alike to theeye of an

ordinaryobserver.

Substantialportion copied.Similarity,

PublicPerformancewithout license.

Likelihood ofConfusion,mistake or

deception.Deliberatecopying?


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InternationalProtection

a. Patent Co-operation treaty(PCT )

b. Paris convention

A priority can beclaimed inmember WTO

countries.

IndianCopyrights arevalid in countries

which aremembers of theBerneConvention andUniversalcopyright

convention

Indian Trademarksare not valid in anyother country just

like ForeignTrademarks are notvalid in India,unless used onapplied for/grantedin India.

Protection of wellknown trademarksagainstmisappropriation.

LABOUR LAWS


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LABOUR LAWS

Jurisdiction Under the Constitution of India, labour is a subject in the Concurrent List where both

Central & State Governments are competent to enact legislation subject to certain mattersbeing reserved for the Centre

Most labor law legislations in India are Central legislations that apply across India. Statesare generally empowered to pass amendments to these laws with specific applicability to therelevant States

Procedural and compliance requirements vary from State to State

Scope of application

All labor laws broadly cover the following aspects and are governed by the legislationsmentioned herein below: (only the significant legislations are mentioned)

Relations with workmen (employees)

The Industrial Disputes Act, 1947

The Trade Unions Act, 1926

Wages/Remuneration of employees

The Minimum Wages Act, 1948

Payment of Wages Act, 1936

The Equal Remuneration Act, 1976

LABOUR LAWS


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LABOUR LAWS

Working conditions

The Factories Act, 1948 or State level Shops and Commercial Establishments Acts

The Industrial Employment (Standing Orders) Act, 1946

The Contract Labor (Abolition & Regulation) Act, 1970

Statutory Benefits and Compensation Payment of Bonus Act, 1965

Payment of Gratuity Act, 1972

Employees Provident Fund and Miscellaneous Provisions Act,

1952

Employees State Insurance Act, 1948

Workmens Compensation Act, 1923

Maternity Benefit Act, 1961


50/50

Thank you

Manishi [email protected]

Documents

05 April 19 2007 Business Development 160407