A common misconception among people looking to hire corporate lawyers in India is that commercial, as well as corporate law, are one and the same when they are two different terms. A professional engaged with a corporate law firm in India may possess knowledge in both the streams but the areas are different on many levels. However, both the laws contribute towards defining the legal framework for a business and its operations. In this article, the major areas in which clients get assistance from the practitioners active in these law fields will be discussed so that people understand the difference between the two streams and know when to hire a commercial or a corporate lawyer in India.
All the legal regulations which govern the establishment of different types of companies and the manner in which they should function in addition to all the compliances that they must adhere to, come under the category of corporate law. Entrepreneurs take help from professionals to get advice on the most appropriate legal format and the corporate hierarchical structure for their company and also in getting their business registered with the specified authority. These laws also regulate corporate finance and the proper shareholding structure that an entity must create apart from capital investment, funding, banking, and budgeting. Legal advisors also help their corporate clients in understanding the legitimacy of business practices and the statutory compliance requirements that their enterprise has to follow.
Business owners can also approach corporate lawyers in India to get all licenses from various government authorities which are required to run an enterprise. These professionals also help foreign companies in starting their ventures in India according to all the laws that have been framed for the purpose. Each and every action of a corporate organization is guided by one or more laws and companies also need legal advisers to get assistance in drafting policies and procedures for hiring employees and in formalizing agreements with vendors, distributors etc. These professionals are also valuable during the process of due diligence before a critical transaction like a merger or an acquisition as they make a comprehensive assessment to establish the viability of a deal and estimating whether it will be profitable or not.
The collection of laws which are collectively called commercial law regulate all domestic as well as cross-border business transactions. Commercial law focuses on the interaction of an enterprise with another entity to conduct its business and all trade and commerce activities come under their ambit. All business deals and the negotiations preceding them have to be conducted according to the specified laws. The agreements, contracts or memoranda of understanding (MoU) needed to formalize a deal are drafted in a manner which satisfies all the applicable legal regulations. These laws also guide the sale and purchase of all tangible or intangible commodities and protect the rights of the buyer as well as the seller.
Commercial lawyers are involved in assisting their clients in the drafting of the requisite agreements needed to establish the chain which delivers a product into the market and they are responsible for all contracts that will be used between a manufacturer and vendor or distributor. They also provide guidance in formulating international trade agreements besides advising clients on starting/buying an agency or franchisee. These legal professionals are also useful in acquiring the required permits or licenses from different government departments. One of the most important services that these advisers discharge is helping their clients deal with a commercial dispute such as a conflict arising between a merchant and vendor or a franchisor and a franchisee.
All businesses in the country need to engage commercial as well as corporate lawyers in India to ensure smooth functioning of their business and to avoid all possible legal hassles. Enterprises, therefore must look for and enlist the services of a competent corporate law firm known for its professional services.