2010 Booklet.pdf - Norway - the official site in India

SPECIFIC GUIDELINES FOR
FOREIGN ENTITIES
Any foreign entity, who is coming to India for business must believe in
one cardinal principle as a good business strategy i.e. believe in
writing, meaning thereby enter into strong and elaborate contracts,
formalize your relationship and communication with Indian
counterparts. If the foreign entity is strong in written communication,
they can expect an effective and quick judicial redressal of their
grievances in case any need arises. It has been often observed that one
of the basic reasons of the problems faced by foreign entities is the
ambiguity in their communications and contracts.
Some of the suggestions to the foreign entities for a successful business
venture in India are:-
• Believe in writing;
• Be specific and avoid ambiguity;
• Before starting relationship prefer to enter in to non disclosure
agreements (NDA)
• Enter into an elaborate contract;
• Envisage situations and make provisions for
termination/revocation of the contract;
• Preserve your correspondence including emails, as emails are
admissible as evidence in the Indian Courts;
• Prefer Alternative dispute resolution i.e. Arbitration, mediation
and Conciliation;
• It is important to carefully choose the location of the registered
office of the foreign entity in India, which may be different from
the operational offices in India. The registered office of the
foreign entity should be at a strategic location providing all
facilities, e.g. New Delhi, as most Courts and judicial forums,
Central Government offices are situated and seated in New
Delhi;
• Choose the place of arbitration and jurisdiction of courts
carefully;
• Prefer to choose the jurisdiction of the court and place of
arbitration, where your office is situated. Indian law allows
choice of place of arbitration and jurisdiction of courts;
• To protect your IPR, it is advisable to have an exit clause i.e. a
clause to clearly define procedure for terminating the
relationship and conduct thereafter, regarding IPR including all
post termination IPR issues, which may include restriction on
the use of the name of the foreign company as part of the name
of the Indian company, Trademark, non disclosure of secret and
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