Multinational Companies vis a vis Legal & Regulatory Environment in India | Kalpeshkumar L Gupta

Multinational Companies vis a vis Legal & Regulatory Environment in India

Multinational Companies vis a vis Legal & Regulatory Environment in India

Abstract :

Setting up a business requires many dimensions to evaluated whether it is in the country or in foreign territory. There are many dimensions like political, economical, sociological, legal etc. Without evaluating these, one will have to face dire consequences. Of course, changing environment can create hurdles at any point of time and one has to exist from there. More the hurdles, the lesser attractive the market will be. The regulatory environment is now the top issue that can have the most impact on a company, according to 400 U.S. CEOs across all major industries surveyed by Forbes Insights and KPMG (“Setting the Course for Growth: CEO Perspectives“). Thirty-four percent of CEOs are spending more time with regulators or government officials, or considering doing so (Moreno Kasia, 2014). A number of cases over the last few years – cancellation of 2G telecom licences and coal block allocation, retrospective taxation cases involving major multinationals and MAT notices to FIIs – too have made investors quite nervous (Singh Namrata & Mukherjee Shubham, 2015). Maggi Ban, Diesel Vehicle Ban are recent examples of uncertain business environment in India. India ranks 130 out of 189 selected countries in terms of ease of doing business, report published by World Bank Group. This shows India as less conducive in terms of setting up the business. There are various factors taken into consideration before arriving to this conclusion. There are factors ranging from starting a business, dealing with construction permit, paying taxes, enforcing contracts etc. India stands at 155, 183, 157, 178 for starting a business, dealing with construction permits, paying taxes, enforcing contracts respectively. Singapore, New Zealand, Denmark, Korea, Hong Kong, UK, USA, Sweden, Norway, Finland are in top ten list.


Present paper will highlight operation of multinational companies in India and supporting environment for it, easy of doing business factors, regulatory environment in the country, some selected judicial decisions.


Key Words :- Multinational Companies, Regulation, Legal, India