The following paragraphs will reveal the important and latest aspects related to legal aspects of Business in India. Followings are important Acts related to business in India-
- The Competition Act, 2002: Objectives and main provisions
- The RTI Act, 2005: Objectives and main provisions
- Limited Liability Partnership
- Intellectual Property Rights like Patents, trademarks and copyrights
LEGAL ASPECTS OF BUSINESS– THE COMPETITION ACT 2002
The Competition Act passed in 2002.It is also known as Anti -Trust Law. It replaced the MRTP ACT of 1969.The act provides for the establishment of Competition Commission. It is a Corporate body under quasi-judicial powers. One can appeal the Orders of Competition Commission in Supreme Court.
Following are relate to competition Act 2002.
a. Collusion and dominance have potential for unfair competition
b. the Appeal against decisions of competition commission can be made to the Competition Appellate Tribunal
c. Abuse of dominance rather than dominance should be the key for competition policy law
State monopolies, government’s business policies and functioning of regulatory authorities cannot be scrutinized under the law.
Prohibition of Restrictive Trade practices or unfair trade practices is not the objective of the competition Act 2002.
Large industrial houses are not outside the purview of the Competition act 2002
Objectives of Competition Act
- Prohibition of Dominant position
- Prohibition of Anti –competitive Agreements
- Regulation of Combinations
The following institutions are exempted from the scope of the competition Act 2002.
1. Public Financial Institutions.
2. Foreign Institutional Investors
4. Venture Capital Funds
5. Agreements related to IPRs.
THE RTI ACT, 2005: OBJECTIVES AND MAIN PROVISIONS
Right to Information is derived from the Constitutional Right of freedom of speech and expression.
The Right to information Act 2005 confers on all citizens of India a right to information
All information except certain categories of information has been exempted from disclosure under this Act.
The Act is applicable to all over India
Procedure to get information under this Act
- Application as per RTI ACT 2005 addressed to Public Information Officer of the Concerned Institution
- Fees amounted Rs.10 in Through chalan /Postal order/Bank Demand Draft/Court fee Stamp
- If you are BPL, copy of Ration Card.
- Appeal to senior officer is allowed within 30 days of the order
Time period for Information
The information requested should be provided within 30 days
b. There is a fine of Rs.250 per day up to a maximum of 25,000 if the information is not provided on the specified time limit under the act.
Central information Commission
-It is a Second Appeal Authority and appeal can be made within 90 days for information related to Central Government Departments.
State information Commission
-Here appeal can be made within 90 days for information related to state Government Departments.
STRUCTURE AND PROCEDURE OF INCORPORATION OF LLP IN INDIA
Partnership is very old business constitution concept in the world.
In India, LLP Act enacted in 2008, It is a combination of Partnership and with features of Companies.
LLP is recommended by 3 committees-
- Dr Abid Hussain Committee
- Naresh Chandra Committee
- JJ Irani Committee
Steps for Incorporation of LLP
Following are the Steps are required for incorporation of LLP
1. Obtain DSC
2. DIN application
3. Name Approval
4. Incorporation of LLP
5. File LLP agreement
Partners of LLP—
II. Body Corporate like company etc.
IPR: PATENTS, TRADEMARKS & COPYRIGHTS
IPR is intangible assets which provides many benefits to the business.
Following are considered as Intellectual property rights in the world
A. Copy Right
B. Trade Marks
D. Geographical indications
e. Industrial designs
f. The lay-out designs
g. Trade Secrets and test data
History Intellectual Property Rights Laws
1485—Venetian Ordinance—-First system of protection of IP
1623—Statue of Monopolies in England for patent right protection.
1760—In USA, Patent Laws was introduced
1880-1869—-Most European countries developed their Patent Laws
IPR LAWS IN INDIA
Following are the Patents Laws in India.
Patent Act, 1856
1911—The Indian Patents and Designs Act
1970— – The Indian Patent Act
2003— Modified Indian Patent Act
What are the persons apply for IPR-
(1) Eligibility to apply for patient registration in India for their invention are –
(a) True and first inventor of the invention;
(b) The assignee of the true and first inventor
(c) The legal representative of any deceased person
Copy Rights Acts in India
- Copy Right Act of 1957
- Modified Copy Right Act in 2012.
Copy Right Protection is available for the following items
Literary, dramatic, or musical work
Cinema artistic work
3. A News- paper publishes a copy of masterpiece painting of ganesh pyne while carrying a story on his death-No infringement
When copyright infringed.—
TRADE MARKS IN INDIA
A trademark in the name of a person represents true ownership of goods and services. In India, it may be applied as a device, wordmark, logo, colors, design, symbol and many others. In the device application, a trademark can be registered as a combination of word and logo (images). In wordmark, the only name can be registered as a trademark. In the logo, the only original image can be registered. Upon registration of copyright, trademark and patient etc, owner have to full and exclusive right over its use.
Sooner or later every brand owner promoting their goods or services realizes the need to register the trademark for the brand.
1970—Trade Mark and Merchandise Mark Act
1999—Modified Trade Mark Act
Govt Reforms & Incentives for MSME Sector
- Indiataxlaws.com is an online knowledge bank for professionals like CA, CS, CMA, Advocates, MBAs, and Finance Professionals. We provide the latest updates, articles, notifications, circulars, court judgments etc. relating to taxation and corporate laws in India.
Latest Article Written
- 2022.12.20Indirect Tax48th GST Council Meeting- Key Highlight
- 2022.06.30Indirect TaxAnalysis of Arrest provisions under GST & Can a CA be arrested under CGST Laws?
- 2022.03.10ArticlesGST COMPLIANCE CALENDAR FOR MARCH 2022
- 2022.03.10ArticlesSupreme court order for extension in the period of limitation (Suo-moto order by the Hon’ble Supreme court)