CELEBRATING MORE THAN YEARS
AWARDS & RECOGNITION
PRACTICE AREAS
Dispute Resolution
Insolvency & Restructuring
General Corporate & Corporate Advisory
Real Estate & Property Laws
Employment & Labour Law
Regulatory Practice
Family Constitution, Succession, Estate Planning, Trust & Private Clients
Intellectual Property Rights
Mergers / Amalgamations / Business Transfer
Foreign Investments
Tax
Banking & Finance
Cyber Law, Privacy, Data Protection & Information Technology
Startups
PEOPLE

RA ShahManaging Partner

Niranjan parekhSenior Partner

Bhushan ShahPartner

Purvi AsherPartner

Shreya DalalAssociate Partner

Meeta kadhiAssociate Partner

Akash JainAssociate Partner

Sanjana SaddyOf-Counsel

Bhavin shahOf-Counsel
News and Articles
Global Business Expansion in India
Why India Is Becoming More Important in Global Expansion Plans
Global businesses are increasingly looking towards India as a strategic destination for growth, investment and long term expansion. In recent years, Global Business Expansion in India has gained significant momentum due to the country’s growing economy, large consumer market and supportive policy environment. India is no longer viewed only as a developing market. It is now recognised as a major global business hub with strong potential across industries.
From multinational corporations to emerging startups, businesses worldwide are integrating India into their expansion strategies. This shift is driven by economic reforms, digital transformation, infrastructure growth and access to skilled talent. As global markets become more interconnected, India’s importance in international business planning continues to rise.
India’s Growing Economic Influence
India has emerged as one of the fastest growing major economies in the world. Consistent economic development has strengthened investor confidence and increased global interest in the Indian market. The country’s expanding industrial base, rising consumer demand and increasing global trade participation have positioned India as a critical economic player. Businesses entering India gain access to both domestic growth opportunities and regional market advantages. Economic resilience has become one of India’s strongest attractions for global companies.
Global Business Expansion in India
The rise of Global Business Expansion in India reflects the country’s growing strategic importance in international commerce. Businesses are increasingly viewing India not merely as a sales market but as a destination for manufacturing, technology development and operational expansion. India’s improving regulatory environment and large scale economic reforms have encouraged international participation across sectors. Global corporations are establishing regional headquarters, research centres and production facilities in India to strengthen their long term market presence. This trend highlights India’s transition into a global business and investment destination.
Large Consumer Market and Rising Demand
One of India’s greatest strengths is its large and diverse consumer base. With a rapidly expanding middle class and increasing disposable income, the country offers significant market potential. Consumer demand is rising across industries including technology, healthcare, retail, finance and entertainment. Businesses entering India can cater to both urban and emerging regional markets. This demand driven environment creates strong growth opportunities for global companies.
Government Reforms Supporting Investment
The Indian government has introduced several reforms aimed at improving the business environment. Initiatives such as Make in India, Startup India and Digital India have encouraged entrepreneurship and foreign investment. Regulatory procedures have become more streamlined through digital systems and simplified approval mechanisms. Improvements in ease of doing business have increased India’s attractiveness for international investors. Government support continues to play a key role in economic expansion.
Strategic Geographic Position
India’s geographic location provides access to major international trade routes and emerging regional markets. Businesses operating from India can efficiently connect with Asia, the Middle East and global markets. Its location also strengthens supply chain operations and manufacturing capabilities. This strategic advantage is particularly important for companies seeking regional operational hubs. India’s position enhances its value in global expansion strategies.
Digital Transformation and Technology Growth
India’s digital ecosystem has transformed significantly over the last decade. Widespread internet access, digital payment adoption and technology innovation have created a dynamic business environment. Technology driven sectors such as fintech, software development and e commerce have experienced rapid growth. Global businesses are increasingly investing in Indian technology capabilities and innovation ecosystems. Digital infrastructure has become a major factor attracting international companies.
Skilled Workforce and Talent Availability
India offers one of the world’s largest pools of skilled professionals across technology, engineering, finance and management sectors. Global businesses benefit from access to qualified talent at competitive operational costs. Educational institutions and professional training programs continue to strengthen workforce capabilities. Talent availability has become a strategic advantage for businesses establishing operations in India.
Manufacturing and Supply Chain Opportunities
India is strengthening its manufacturing sector through policy support and infrastructure development. Businesses seeking supply chain diversification are increasingly considering India as a manufacturing destination. Production linked incentives and industrial development programs have encouraged investment in electronics, automotive and pharmaceutical sectors. This shift supports India’s growing role in global manufacturing networks.
Infrastructure Development and Connectivity
Infrastructure improvements have significantly enhanced India’s business environment. Investments in transportation, logistics and digital connectivity have improved operational efficiency. Modern infrastructure supports manufacturing, trade and business expansion activities. Better connectivity also improves access to regional markets within the country. Infrastructure development continues to strengthen India’s competitiveness.
Regulatory Framework and Legal Structure
India has a structured legal framework governing commercial activities, taxation and corporate operations. Businesses entering the Indian market must understand regulatory obligations and compliance requirements. Legal reforms and digital governance systems have improved transparency and efficiency. Companies seeking to establish company in India often focus on understanding regulatory procedures early to ensure smooth market entry. A clear legal framework increases investor confidence and operational stability.
Rise of Startup and Innovation Ecosystems
India has one of the world’s largest startup ecosystems. Innovation driven businesses are expanding across sectors such as artificial intelligence, fintech, health technology and renewable energy. The startup ecosystem attracts venture capital, accelerators and global partnerships. This entrepreneurial environment creates collaboration opportunities for international businesses. Innovation continues to strengthen India’s global business reputation.
Increasing Foreign Direct Investment
India has witnessed strong growth in foreign direct investment across multiple sectors. Liberalised investment policies and market opportunities have encouraged international participation. Foreign investors are increasingly viewing India as a long term growth destination rather than a short term opportunity. The combination of market size and economic stability supports investor confidence. FDI growth reflects India’s increasing global relevance.
Importance of Structured Business Entry
Entering a new market requires careful planning and compliance. Businesses expanding into India must evaluate legal structures, taxation and operational strategies before establishing a presence. Many international entrepreneurs consider setting up a private limited company in India due to the credibility, governance structure and scalability associated with this business model. Structured entry planning helps businesses operate efficiently and remain compliant.
Challenges Businesses Should Consider
Despite its advantages, India presents certain operational and regulatory challenges. Businesses may face complexities related to regional diversity, compliance procedures and market competition. Understanding local market conditions and obtaining professional guidance are important for managing these challenges effectively. Businesses prepared for these factors are more likely to achieve long term success.
Long Term Growth Potential
India’s long term growth outlook remains strong due to demographic advantages, economic reforms and increasing global integration. Businesses entering the Indian market today are positioning themselves for future opportunities. As industries continue to evolve, India is expected to remain a central part of global expansion strategies. Long term planning and adaptability are essential for success in this environment.
Conclusion
The growing importance of Global Business Expansion in India reflects the country’s transformation into a major international business destination. Economic strength, policy reforms, technological growth and market potential have positioned India as a strategic centre for global operations. Businesses looking towards long term growth are increasingly recognising India not only as a market of opportunity but also as a foundation for regional and international expansion. As global economic dynamics continue to evolve, India’s role in business expansion plans is expected to become even more significant.
Frequently Asked Questions (FAQs)
Q1. Why is India important for global business expansion?
India offers economic growth, a large consumer market and strong investment opportunities.
Q2. What sectors are attracting global businesses in India?
Technology, manufacturing, healthcare, finance and retail are among the leading sectors.
Q3. Is India favourable for foreign investment?
Yes, policy reforms and market potential have made India attractive for international investors.
Q4. Why do businesses choose India for operations?
Businesses benefit from skilled talent, digital infrastructure and market access.
Q5. What is the best structure for foreign businesses entering India?
Many companies prefer private limited structures for scalability and governance benefits.
Legal and Business Readiness,
Why Legal and Business Readiness Should Go Hand in Hand
Launching and growing a business requires more than a strong idea or financial investment. True success lies in achieving a balance between operational planning and Legal and Business Readiness. Many entrepreneurs focus heavily on market strategy, branding or funding, while legal preparedness is often treated as a secondary concern. This imbalance can create serious challenges in the long run. A business that is operationally strong but legally weak faces risks such as penalties, disputes and regulatory barriers. On the other hand, legal readiness without business strategy limits growth potential. Sustainable success comes from aligning both aspects from the very beginning.
This article explores why legal and business readiness must go hand in hand and how this alignment supports long term growth and stability.
Understanding Legal and Business Readiness
Legal readiness refers to compliance with laws, regulations and formal requirements necessary to operate a business. It includes registration, licensing, taxation and contractual obligations. Business readiness, on the other hand, involves operational planning, market strategy, financial management and resource allocation. When these two areas work together, a business operates efficiently while remaining compliant. This alignment creates a stable environment for growth.
Legal and Business Readiness in Modern Enterprises
In today’s regulatory and competitive environment, Legal and Business Readiness is not optional. It is a fundamental requirement for businesses aiming to scale and sustain. Regulatory frameworks are becoming more structured, and investors expect transparency and compliance. Businesses must ensure that their operations align with legal standards while maintaining strategic focus. This dual readiness strengthens credibility and supports long term success.
Building a Strong Legal Foundation
A strong legal foundation begins with choosing the right business structure. This decision affects liability, taxation and governance. Proper registration ensures legal recognition and allows the business to operate within the regulatory framework. It also builds trust with customers, partners and investors. Many entrepreneurs exploring company formation in India focus on establishing a compliant structure early to avoid complications in later stages.
Aligning Compliance with Business Strategy
Compliance should not be viewed as a separate function. It must be integrated into business strategy. For example, taxation planning influences pricing strategies, while licensing requirements may affect operational timelines. Aligning compliance with strategy ensures smoother execution. Businesses that integrate legal considerations into planning are more efficient and resilient.
Financial Planning and Legal Obligations
Financial readiness includes budgeting, revenue planning and cost management. Legal readiness includes tax compliance, reporting and financial disclosures. These elements are interconnected. Poor financial planning can lead to non compliance, while lack of legal awareness can result in unexpected liabilities. Balancing both aspects ensures financial stability and regulatory compliance.
Contractual Clarity and Risk Management
Contracts form the backbone of business relationships. They define rights, responsibilities and expectations between parties. Legal readiness ensures that agreements are properly drafted and enforceable. Business readiness ensures that these agreements align with operational goals. Clear contracts reduce disputes and protect business interests.
Enhancing Investor Confidence
Investors evaluate both the commercial viability and legal standing of a business. A company with strong business potential but weak compliance may struggle to secure funding. Legal readiness demonstrates professionalism and reduces risk for investors. Business readiness shows growth potential and profitability. Together, they create a compelling case for investment.
Operational Efficiency Through Compliance
Compliance is often seen as a burden, but it can improve operational efficiency when managed effectively. Structured processes for documentation, reporting and governance create consistency in operations. This reduces errors and improves accountability. Businesses that integrate compliance into operations function more smoothly.
Regulatory Awareness and Adaptability
Regulations evolve over time, and businesses must adapt to these changes. Legal readiness involves staying informed about regulatory updates and implementing necessary changes. Business readiness ensures that the organisation can adapt without disrupting operations. Together, they enable flexibility and resilience. Adaptability is essential for long term success.
Reputation and Brand Trust
A business that complies with legal requirements builds trust among customers and stakeholders. Reputation is a valuable asset in any industry. Legal issues can damage brand image and reduce customer confidence. On the other hand, a compliant and well managed business enhances credibility. Trust plays a significant role in customer retention and growth.
Scaling with Confidence
Growth brings increased complexity, including higher compliance requirements and operational demands. Businesses that establish legal and operational systems early can scale more effectively. Entrepreneurs planning to register private limited company in India often prioritise structured governance and compliance frameworks to support expansion. Scaling becomes more manageable when both legal and business aspects are aligned.
Avoiding Common Pitfalls
Many businesses face challenges due to imbalance between legal and business readiness. Common issues include delayed registrations, incomplete documentation and lack of compliance awareness. These problems can lead to penalties, operational delays and reputational damage. Addressing both aspects early helps avoid such pitfalls. Preparation reduces risk and improves efficiency.
Role of Professional Guidance
Legal and business readiness often require specialised knowledge. Professional advisors provide guidance on compliance, structuring and strategic planning. Their expertise helps businesses navigate complex regulations and make informed decisions. Early involvement of professionals improves accuracy and efficiency. Expert support adds significant value to business operations.
Long Term Sustainability
Sustainability depends on consistency, compliance and adaptability. Businesses that align legal and operational aspects are better equipped to maintain stability over time. Legal readiness ensures adherence to regulations, while business readiness drives growth and innovation. Together, they create a balanced approach to sustainability. This alignment is essential for long term success.
Conclusion
The importance of Legal and Business Readiness lies in its ability to create a balanced and sustainable business environment. A business cannot rely solely on strategy or compliance. Both must work together to support growth, manage risk and build credibility. Entrepreneurs who prioritise this alignment from the beginning are better prepared to navigate challenges and seize opportunities. In a dynamic and regulated market, readiness is not just an advantage. It is a necessity for long term success.
Frequently Asked Questions (FAQs)
Q1. What is legal and business readiness?
It refers to the alignment of legal compliance and operational preparedness in a business.
Q2. Why is legal readiness important for startups?
It ensures compliance with laws and reduces the risk of penalties and disputes.
Q3. How does business readiness support growth?
It provides strategy, financial planning and operational efficiency.
Q4. Can a business succeed without legal readiness?
It may operate temporarily, but risks legal issues and long term instability.
Q5. How can businesses achieve both legal and business readiness?
By integrating compliance into planning and seeking professional guidance.
smart business foundations
How Smart Business Foundations Support Sustainable Growth?
Sustainable growth is rarely accidental. It is the result of deliberate decisions made at the earliest stages of building a business. Strong and smart business foundations provide the structure, clarity and resilience required to navigate changing markets, regulatory demands and competitive pressures. While many founders focus on rapid expansion, those who invest in building solid foundations are more likely to achieve consistent and long term success.
A business built on clear legal, financial and operational principles is better equipped to adapt, scale and sustain growth. This article explains how smart business foundations contribute to long term sustainability and why they should be a priority for every entrepreneur.
The Meaning of Smart Business Foundations
Smart business foundations refer to the essential elements that support a business from the ground up. These include legal structure, governance systems, financial planning, operational processes and compliance mechanisms. These foundations are not limited to initial setup. They influence how a business functions, grows and responds to challenges over time. When these elements are aligned, the business operates with clarity and efficiency. Strong foundations create stability, while weak foundations often lead to uncertainty and operational difficulties.
Smart Business Foundations and Long Term Growth
The role of smart business foundations becomes evident as a business evolves. Early decisions regarding structure, compliance and strategy shape future outcomes. Businesses with well planned foundations are better positioned to scale without disruption. They can attract investment, manage risks and maintain consistency in operations. Growth is more sustainable when it is supported by a solid base rather than rapid but unstable expansion.
Legal Structure as the Starting Point
Choosing the right legal structure is one of the most important steps in building a business. The structure determines liability, taxation and regulatory obligations. A clear legal framework provides stability and protects the interests of founders. It also simplifies compliance and improves credibility. Many entrepreneurs evaluate options to setup a company in India as part of establishing a strong legal foundation that supports long term growth.
Governance and Decision Making Framework
Effective governance ensures that decisions are made systematically and transparently. It involves defining roles, responsibilities and authority within the organisation. A well defined governance framework reduces conflicts and improves accountability. It also supports consistent decision making as the business grows. Businesses with clear governance structures are better prepared to handle complexity.
Financial Planning and Stability
Financial discipline is a key component of sustainable growth. Smart foundations include careful planning of budgets, expenses and revenue streams. Businesses must manage cash flow effectively and prepare for fluctuations in income. Early financial planning helps avoid crises and ensures operational continuity. A financially stable business can invest in growth without compromising its core operations.
Compliance and Regulatory Awareness
Compliance is an ongoing responsibility for every business. Understanding and adhering to legal requirements builds trust and reduces risk. Smart business foundations include systems for maintaining records, filing returns and meeting regulatory obligations. This proactive approach prevents penalties and disruptions. Compliance also enhances credibility with investors and partners.
Operational Efficiency and Process Design
Efficient operations are essential for delivering consistent value. Smart foundations involve creating clear workflows, systems and processes. This includes supply chain management, service delivery and internal coordination. Well designed operations improve productivity and reduce inefficiencies. Businesses with structured processes are more capable of handling growth.
Building a Scalable Business Model
A scalable business model is one that can grow without significant increases in cost or complexity. Smart foundations support scalability by ensuring flexibility and adaptability. Founders must consider how their business will expand over time. This includes planning for increased demand, additional resources and new markets. Scalability is easier when it is built into the foundation of the business.
Talent and Organisational Culture
People play a crucial role in business success. Smart foundations include planning for talent acquisition, training and retention. Creating a positive organisational culture improves employee engagement and productivity. It also supports collaboration and innovation. Strong teams contribute to sustainable growth and long term success.
Technology Integration and Digital Readiness
Technology is a key driver of modern business operations. Integrating digital tools early improves efficiency and scalability. Businesses can use technology for communication, data management and customer engagement. Digital readiness also enables innovation and adaptability. Smart use of technology strengthens the overall foundation of the business.
Risk Management and Resilience
Every business faces uncertainties, including market changes, financial challenges and regulatory developments. Smart foundations include identifying risks and preparing for them. Risk management involves creating strategies to minimise impact and ensure continuity. A resilient business can withstand challenges and recover quickly. Preparedness is essential for long term sustainability.
Market Positioning and Brand Development
A strong market presence is built on clear positioning and consistent branding. Smart foundations involve defining the value proposition and communicating it effectively. Brand identity influences customer perception and trust. It also differentiates the business from competitors. Effective positioning supports growth and customer loyalty.
Access to Investment and Funding
Investors prefer businesses with clear structures and strong foundations. A well organised business is easier to evaluate and support. Smart foundations improve transparency and reduce perceived risk. This increases the likelihood of attracting funding. Entrepreneurs planning to register Pvt ltd company in India often prioritise structured frameworks to meet investor expectations and support growth.
Long Term Strategic Planning
Sustainable growth requires a long term perspective. Smart foundations include setting clear goals and aligning strategies with those goals. Strategic planning helps businesses adapt to changing conditions and seize opportunities. It also ensures that growth is consistent and manageable. A forward looking approach supports stability and expansion.
Common Challenges Without Strong Foundations
Businesses that lack strong foundations often face operational inefficiencies, financial instability and compliance issues. These challenges can hinder growth and create uncertainty. Addressing these issues later is often complex and costly. Building strong foundations from the beginning helps avoid such problems. Preparation is more effective than correction.
Conclusion
The importance of smart business foundations lies in their ability to support sustainable growth. They provide the structure and clarity needed to manage operations, comply with regulations and adapt to change. Businesses that invest in strong foundations are better equipped to achieve long term success. They can scale efficiently, attract investment and maintain stability in a competitive environment. In the journey of building a business, foundations are not just the starting point. They are the basis of everything that follows.
Frequently Asked Questions (FAQs)
Q1. What are smart business foundations?
They are the core elements such as legal structure, financial planning and operational systems that support a business.
Q2. Why are business foundations important?
They provide stability, improve efficiency and support long term growth.
Q3. How do foundations impact scalability?
Strong foundations allow businesses to expand without operational disruptions.
Q4. Is legal structure part of business foundations?
Yes, it affects liability, taxation and compliance.
Q5. Can a business grow without strong foundations?
Growth is possible, but it is often unstable and difficult to sustain.
early business structuring
Why Early Business Structuring Can Influence Long-Term Success?
Building a successful business involves more than a strong idea or initial funding. One of the most decisive yet often overlooked factors is early business structuring. The way a business is organised at the beginning shapes its legal standing, financial efficiency and operational clarity. Founders who invest time in structuring their business correctly from the outset are better positioned to manage risks, attract investment and scale sustainably. In today’s competitive and regulated environment, early decisions related to ownership, governance and compliance can have long lasting consequences. This article explores why early business structuring plays a critical role in long term success and how founders can approach it strategically.
Understanding the Concept of Business Structuring
Business structuring refers to the legal and operational framework within which a company operates. It includes decisions regarding ownership, management roles, compliance systems and financial organisation. At an early stage, these decisions may seem procedural. However, they determine how the business interacts with regulators, investors and stakeholders. A well structured business operates with clarity and efficiency, while a poorly structured one often faces avoidable complications. Early structuring is not about complexity. It is about creating a stable foundation.
Early Business Structuring and Its Strategic Importance
The significance of early business structuring lies in its ability to align legal, financial and operational aspects of a business. It ensures that the enterprise is prepared for growth, compliance and external scrutiny. When structuring is addressed at the beginning, founders can avoid costly restructuring later. It also improves decision making by providing clear frameworks for governance and accountability. Strategic structuring supports both immediate operations and long term objectives.
Choosing the Right Legal Entity
One of the first steps in structuring a business is selecting the appropriate legal entity. Options may include sole proprietorship, partnership, limited liability partnership or private limited company. Each structure has distinct implications for liability, taxation and compliance. The choice must reflect the scale of operations, funding plans and risk exposure. Many founders exploring setting up a new company in India consider these factors carefully to ensure their business begins with legal clarity and operational flexibility.
Impact on Liability and Risk Management
The structure of a business directly affects the level of risk borne by its owners. In certain structures, founders are personally liable for business obligations, while others provide limited liability protection. Early structuring allows founders to protect personal assets and manage risk effectively. It also provides clarity in case of disputes or financial challenges. Risk management begins with the right structural decisions.
Governance and Decision Making
A well structured business establishes clear governance mechanisms. This includes defining roles, responsibilities and decision making authority. Early clarity in governance prevents conflicts among founders and stakeholders. It also ensures accountability and transparency in operations. Strong governance frameworks contribute to long term stability and trust.
Financial Efficiency and Tax Planning
Business structure plays a significant role in financial management and taxation. Different structures are subject to different tax treatments and compliance requirements. Early planning allows founders to optimise tax efficiency and manage financial obligations effectively. It also simplifies accounting and reporting processes. Financial discipline is easier to maintain when the structure supports it.
Attracting Investment and Building Credibility
Investors prefer businesses with clear and compliant structures. A well organised entity signals professionalism and reduces perceived risk. Early structuring improves credibility with investors, lenders and partners. It also facilitates due diligence during funding rounds. Entrepreneurs considering setting up a private limited company in India often do so to enhance investor confidence and enable equity based funding.
Operational Clarity and Efficiency
Operational efficiency depends on clear processes and defined roles. Early structuring helps establish systems for workflow, communication and accountability. This clarity improves productivity and reduces operational confusion. It also supports consistent service delivery and customer satisfaction. Businesses with structured operations are better prepared for growth.
Compliance and Regulatory Preparedness
Regulatory compliance is an ongoing requirement for businesses. Early structuring ensures that compliance systems are in place from the beginning. This includes maintaining records, filing returns and adhering to industry regulations. A structured approach reduces the risk of penalties and legal complications. Compliance is not a one time task. It is a continuous process supported by proper structuring.
Scalability and Growth Potential
A business designed with growth in mind is more likely to scale successfully. Early structuring allows founders to build flexible systems that can adapt to expansion. This includes preparing for increased operations, additional funding and new markets. Scalability is easier when the foundational structure supports change. Planning for growth early prevents operational strain later.
Managing Founder Relationships
In businesses with multiple founders, structuring plays a critical role in defining relationships. It outlines ownership, profit sharing and decision making authority. Clear agreements reduce the risk of disputes and ensure alignment among founders. Early clarity in these matters strengthens collaboration and trust. Healthy founder relationships are essential for long term success.
Avoiding Costly Restructuring
Businesses that neglect early structuring often face challenges as they grow. Restructuring later can be complex, time consuming and expensive. It may involve legal changes, tax implications and operational disruptions. Addressing structuring at the beginning helps avoid these issues. Prevention is always more efficient than correction.
Role of Professional Guidance
Business structuring involves legal and financial considerations that require expertise. Professional advisors can help founders make informed decisions and ensure compliance. Legal experts assist in drafting agreements, selecting structures and navigating regulatory requirements. Their involvement reduces errors and improves efficiency. Seeking guidance early adds significant value to the business.
Common Mistakes in Early Structuring
Many founders delay structuring decisions or choose unsuitable frameworks due to lack of awareness. Common mistakes include ignoring compliance requirements, unclear ownership arrangements and inadequate documentation. These issues often surface during funding, expansion or disputes. Avoiding such mistakes requires careful planning and informed decision making. Awareness and preparation are key.
Conclusion
The importance of early business structuring cannot be overstated. It forms the backbone of a business and influences every aspect of its operation, from compliance and governance to growth and investment. Founders who prioritise structuring from the beginning build businesses that are resilient, efficient and prepared for future challenges. In contrast, those who overlook it often face avoidable complications. A strong structure does not guarantee success, but it significantly improves the chances of achieving it.
Frequently Asked Questions (FAQs)
Q1. What is early business structuring?
It refers to organising a business’s legal, financial and operational framework at the initial stage.
Q2. Why is business structuring important?
It affects liability, taxation, governance and overall efficiency of the business.
Q3. Can structuring be changed later?
Yes, but restructuring can be complex and costly compared to planning early.
Q4. Which structure is best for startups?
It depends on the business model, but private limited companies are often preferred for scalability.
Q5. Does structuring affect funding opportunities?
Yes, investors prefer businesses with clear and compliant structures.
MHCO Updates
ONLINE GAMING RULES 2026,
REGULATORY UPDATE: ONLINE GAMING RULES 2026 ISSUED
Contributors:
Ms Shreya Dalal, Associate Partner
Mr Abhishek Nair, Associate
On 22 April 2026, the Ministry of Electronics and Information Technology notified the Promotion and Regulation of Online Gaming Rules, 2026 (Gaming Rules), under the Promotion and Regulation of Online Gaming Act, 2025 (Gaming Act). These rules are scheduled to come into force on 1 May 2026.
The Gaming Rules provide the operational framework for implementing the Gaming Act. They have establish detailed procedures for the classification (determination) of online games, registration of permissible online social games and e-sports, constitution and functioning of the regulatory body, grievance redressal, compliance obligations, and enforcement mechanisms.
Establishment of the Online Gaming Authority of India
The rules constitute the Online Gaming Authority of India (Authority) as an attached office of the Ministry of Electronics and Information Technology (MeitY). This Authority comprises of:
A Chairperson (Additional Secretary or Joint Secretary-level officer from MeitY, ex officio).
Ex officio Members from the Ministries of Home Affairs, Finance (Department of Financial Services), Information and Broadcasting, Youth Affairs and Sports, and Law and Justice.
A Secretary (Director-level officer with IT experience) and supporting staff.
The Authority is empowered to function primarily in digital mode, with provisions for meetings (physical or digital), decision-making by majority, and emergency actions by the Chairperson, with its head office in Delhi.
Key Functions of the Authority
The Authority is responsible for:
Determining whether an online game qualifies as an online money game (which is prohibited as per the Online Gaming Act, 2025) based on factors such as payment of fees/deposits/stakes, expectation of monetary returns, revenue model, and the ability to monetise rewards outside the game environment.
Maintaining and publishing a list of determined online money games.
Processing applications for registration of online social games and e-sports.
Issuing directions, guidelines, and codes of practice on user safety, grievance redressal, fair play, data retention, payment facilitation, and cybersecurity.
Handling grievances and appeals from users and service providers.
Inquiring into non-compliance and imposing penalties under the Gaming Act.
Determination and Registration Process
Determination: The Gaming Rules have now created a procedure to pass a determination order to adjudicate on whether an online game is an online money game or not. However most online games do not require prior determination unless the Authority initiates it suo motu, the provider seeks to offer it as an e-sport, or the Central Government notifies a category of social games for scrutiny. The determination process involves notice, opportunity to be heard, examination of game mechanics and revenue models, and issuance of a determination order within a targeted timeline of 90 days.
Registration: The Gaming Rules now mandate registration for e-sports and, in certain cases, online social games (based on risk to users, scale of participation, financial aspects, etc.). Online money games are ineligible for registration as e-sports. A digital certificate of registration is thereafter issued, which is valid for up to 10 years, subject to conditions as may be applicable. Service providers must prominently display determination / registration details and refrain from misrepresenting games. Furthermore, changes affecting payment facilitation must be notified to the Authority.
Obligations of Online Game Service Providers
Providers offering online social games or e-sports must comply with requirements relating to:
User safety features (including age verification, parental controls, time limits, and grievance mechanisms).
Appointment of a point of contact.
Data retention (traffic data, metadata) on Indian servers where specified.
Facilitation and routing of payments (with prior verification of registration / determination status).
Fair play standards and periodic compliance reporting.
Banks and financial institutions must verify registration before facilitating transactions and immediately suspend services for determined online money games upon receiving directions from the Authority.
Grievance Redressal and Appeals
Service Providers must maintain an internal grievance redressal mechanism. Aggrieved users may escalate unresolved complaints to the Authority within 30 days, which endeavours to dispose of them within further 30 days. Further appeals lie to the Appellate Authority (Secretary, MeitY) within 30 days.
Penalties and Enforcement
The rules detail the inquiry process for imposing penalties under Section 12 of the Gaming Act, including notice, opportunity of hearing, and factors for determining penalty quantum. Non-compliance can result in suspension or cancellation of registration, in addition to monetary penalties and other sanctions under the Gaming Act.
MHCO Comment
The Gaming Rules operationalise the Gaming Act by creating a structured, primarily digital regulatory regime centred on the Online Gaming Authority of India. They seek to distinguish between prohibited online money games (involving stakes and expectation of monetary gain) and permissible online social games and e-sports, while imposing significant compliance burdens on service providers regarding user protection, payments, and data.
Although the framework promotes e-sports and non-monetary games through registration and potential guidelines, the detailed determination process, ongoing obligations, and strict enforcement mechanisms (including financial transaction blocks) are likely to increase operational complexity and costs for the industry. Platforms previously reliant on real-money gaming will need to adapt swiftly or restructure offerings before the effective date, i.e. 1 May 2026. The rules reflect a cautious approach prioritising user safety and prohibition of wagering, but their practical impact will depend on the Authority’s implementation, including the issuance of further guidelines and the efficiency of determination/registration processes.
corporate veil lifting
COMPANIES LAW UPDATE | NCDRC HOLDS PARENT COMPANY LIABLE FOR ACTS OF ITS SUBSIDIARY COMPANY
Contributors:
Mr Akash Jain, Associate Partner
Ms Sayali Kshirsagar
OVERVIEW
In a recent Order passed by the National Consumer Disputes Redressal Commission (“NCDRC”) in Prem Prakash Rajpurohit vs M/s Ansal Hi-Tech Township Ltd., dated 08 April 2026, NCDRC determined that a corporate structure cannot be used as a shield to defeat consumer decrees. NCDRC clubbed 70 execution applications and lifted the corporate veil of Ansal Hi-Tech Township Ltd (“AHTTL”) and its parent company named Ansal Properties and Infrastructure Ltd (“APIL”), and treated the two entities as part of the same recovery proceedings because the structure was being misused to avoid execution of the decrees.
BACKGROUND OF THE CASE
AHTTL launched a project named “Sushant Megapolis Project”, a residential housing project in Greater Noida. However, AHTTL delayed the possession of the homebuyers for more than 18 years. The homebuyers, aggrieved by the delayed possession approached NCDRC by way of consumer complaints, considering the high value of the claims involved. The homebuyers sought refund of amounts paid along with interest and compensation for the delay. The NCDRC, upon examining the material of record, allowed the complaint filed by the homebuyers and directed AHTTL to refund the principal amount along with applicable interest and litigation costs. However, AHTTL failed to comply with the directions pursuant to which, the homebuyers initiated execution proceedings. During the course of such proceedings, NCDRC noted that AHTTL lacked sufficient independent financial capacity to comply with the decrees and that there existed significant overlap in control and asset structuring with its parent company, namely APIL. Thereafter, AHTTL resisted to seek the execution stating that APIL is under Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), contending that all recovery and enforcement actions must remain stayed.
COMPLAINANT’S CONTENTION
The homebuyers submitted that APIL was not merely a shareholder of AHTTL; instead, the controlling power was with APIL. APIL held more than 50% shareholding in AHTTL, both entities had common directors and Key Managerial Personnel.
Homebuyers pointed to documents like legal termination notice, collaboration agreements, and power of attorney to show that APIL was controlling AHTTL.
Homebuyer further contended that the moratorium is restricted to only certain projects of the APIL and the Sushant Megapolis Project is not covered under the moratorium.
Lastly, the homebuyers submitted that the corporate veil should be lifted and that APIL should be made liable to execute the consumer decrees, because otherwise the orders of the NCDRC would be rendered ineffective.CONTENTIONS OF APIL & AHTTL
APIL resisted the liability of AHTTL on the ground that the parent company and subsidiary company are separate legal entity and contended that mere shareholding or ownership does not make a parent company liable for the debts of its subsidiary
AHTTL submitted that APIL was not a party to the original consumer complaints and no decree had been passed directly against APIL, and that execution could not be used to create a new liability.
Further, with regard to the moratorium, it was submitted that the insolvency proceedings are in effect due to whichall recovery actions must be stayed, including consumer execution proceedings.
RULING
The NCDRC held that the doctrine of separate legal personality cannot be invoked to defeat consumer decrees where the parent company exercises active control over the subsidiary company. On examining the material on record, NCDRC found that APIL was not a mere shareholder but had substantial control over AHTTL’s management, finances, and project execution, with clear overlap in directors, decision-making, and asset structuring. On that basis, it concluded that the parent company and those responsible for its affairs could not escape execution and thereafter it was a fit case to lift the the corporate veil. NCDRC further held that APIL could be proceeded against for execution of the decrees. The defence of moratorium under the IBC was also rejected, as it did not extend to shield the parent company in respect of liabilities arising from a project not covered under the insolvency process.
MHCO COMMENT
This order reinforces that corporate structuring cannot be used as a device to evade legal obligations and limits the misuse of the corporate veil. The NCDRC has made it clear that where a parent company exercises effective control over a subsidiary, it may be held accountable for the subsidiary’s defaults, especially when the subsidiary is used as an instrument to carry out the parent company’s business. It clarifies that parent companies cannot escape responsibility where they are, in reality, the very decision maker behind the subsidiary company’s actions.
FDI UPDATE - PRESS NOTE 3 AMENDED
FDI UPDATE - PRESS NOTE 3 AMENDED | GOVERNMENT RELAXES FDI INVESTMENTS FROM CHINA
Contributors:
Ms Shreya Dalal, Associate Partner
Mr Divyang Salvi, Associate
The Union Cabinet has approved a relaxation of Foreign Direct Investment (“FDI”) norms applicable to investments from countries sharing land borders with India, amending the framework introduced under Press Note 3 (2020 Series) issued by the Department for Promotion of Industry and Internal Trade (“DPIIT”). The decision, taken at a Cabinet meeting chaired by the Prime Minister, signals a potential shift in India’s approach towards investments originating from neighbouring jurisdictions that were previously subject to heightened regulatory scrutiny.
Introduction
Press Note 3 of 2020 was introduced in the backdrop of geopolitical tensions and concerns regarding opportunistic acquisitions of Indian companies during the COVID-19 pandemic. The policy required any entity from a country sharing a land border with India, or any investment where the beneficial owner was situated in such a country, to obtain prior Government approval before investing in India.
The rule applies to seven neighbouring jurisdictions, namely China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan, and effectively moved such investments from the automatic route to the government approval route across sectors. The Cabinet’s recent decision indicates a calibrated relaxation of these restrictions, with the objective of balancing national security considerations with investment facilitation and economic engagement.
Background and Regulatory Context
Following the introduction of Press Note 3 in 2020, investments from land-bordering countries were subjected to enhanced regulatory scrutiny. The measure was widely viewed as a safeguard against potential strategic or opportunistic takeovers of Indian companies during a period of economic vulnerability.
Subsequent geopolitical developments further reinforced the cautious regulatory approach towards investments from certain neighbouring jurisdictions. During this period, India also imposed restrictions on several digital platforms and applications originating from such jurisdictions, reflecting broader policy concerns relating to national security and economic sovereignty.
MHCO Comment
The Cabinet’s decision to ease certain restrictions under the Press Note 3 framework signals a calibrated policy shift aimed at facilitating cross-border investment while continuing to safeguard strategic interests. While detailed amendments and implementation guidelines are awaited, the move may improve investor sentiment and provide greater clarity to foreign investors from neighbouring jurisdictions. At the same time, given the sensitivities surrounding investments from land-bordering countries, regulatory scrutiny and approval mechanisms are likely to continue playing an important role in India’s investment regime.
SEBI Update
SEBI Update | SEBI Amends ‘Fit and Proper Person’ Criteria
Contributors:
Mr Bhushan Shah, Partner
On 4 February 2026, the Securities and Exchange Board of India (SEBI) issued a Consultation Paper proposing amendments to the “fit and proper person” criteria under Schedule II of the SEBI (Intermediaries) Regulations, 2008 (“Intermediaries Regulations”). These criteria apply to intermediaries and to their key managerial personnel, promoters, and persons in control.
Following the Consultation Paper, SEBI approved the proposed amendments in its Board Meeting held on 23 March 2026.
Amendments to the existing provisions
One of the most significant changes relates to Clauses 3(b)(i) and 3(b)(ii) of Schedule II of the Intermediaries Regulations. Under the existing provisions, the mere pendency of a criminal complaint or FIR filed by SEBI, or the filing of a charge sheet by enforcement agencies in relation to economic offences, resulted in automatic disqualification. SEBI has now approved that these shall not be the primary grounds for disqualification.
At the same time, SEBI has strengthened the framework in cases where wrongdoing is established. Under the existing Clause 3(b)(v) of the Intermediaries Regulations, the disqualification was based on a conviction for an offence involving moral turpitude. This has now been expanded to include convictions for any economic offence or any offence under securities laws.
Further, Clause 3(b)(vi) of Schedule II of the Intermediaries Regulations previously treated both the initiation of winding-up proceedings and an order of winding up as grounds for disqualification. SEBI has now narrowed this provision. Only an order of winding up will be treated as a ground for disqualification, while the mere initiation of such proceedings will no longer be considered a ground.
SEBI has also revised the consequences of being declared not “fit and proper.” Under the existing Clause 4 of the Intermediaries Regulation, where no specific period was prescribed in a not “fit and proper person” Order issued by SEBI, a default prohibition of five years applied from making a fresh application for registration. This default rule has now been removed, and the prohibition will apply only for the period specified in SEBI’s order.
In addition, Clause 5 of the Intermediaries Regulation has been narrowed. Previously, if a Show Cause Notice (“SCN”) had been issued under Sections 11(4) or 11B of the SEBI Act, 1992, the application for registration would not be considered for one year. SEBI has now limited this restriction to SCNs under Sections 11(4) and 11B(1), and reduced the period of non-consideration from one year to six months.
New insertions to the existing provisions
SEBI has also introduced important procedural provision and compliance obligations through new insertions.
First, the insertion of Clause 3A under Schedule II of the Intermediaries Regulations provides that where any person falls within the grounds of disqualification specified under Clause 3(b), such occurrence must be reported to SEBI within 15 (fifteen) working days.
Second, Clause 3B under Schedule II of the Intermediaries Regulations has been introduced to provide that no person shall be declared not “fit and proper” without being given a reasonable opportunity of being heard.
MHCO Comment
The amendments represent SEBI’s attempt to simplify and rationalise the “fit and proper person” criteria by moving away from rigid disqualifications toward a more proportionate framework in compliance with the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 and SEBI (Depositories and Participants) Regulations, 2018. The earlier position, where mere pendency of an FIR or charge sheet was the primary ground for automatic disqualification, effectively imposed consequences without adjudication, leading to significant reputational and commercial harm. Similarly, holding initiation of insolvency proceedings, as well as an order of winding up, as grounds for disqualification failed to recognise that the corporate debtor may survive the liquidation process; therefore, limiting disqualification to cases of actual winding-up orders corrects this imbalance. The introduction of Clauses 3A and 3B strengthens procedural fairness by mandating the timely disclosure of disqualifying events and expressly guaranteeing an opportunity to be heard. The removal of the default five-year prohibition and the narrowing of SCN-based restrictions further reinforce the principle of proportionality. In conclusion, these changes align the framework with principles of fairness, consistency, and enforcement, without diluting investor protection.
The views expressed in this update are personal and should not be construed as legal advice. Please contact us for any assistance.
2025 - MANSUKHLAL HIRALAL & CO.
Need Help? Chat with us








