With the expansion of the global economy, businesses often face and address very complex legal issues, especially when they operate in more than one jurisdiction. Therefore, international law firms play an important role in crossing borders to expand globally, settling international disputes, or complying with different legal regimes.
For companies operating in the periphery of the Indian subcontinent, coordination with trusted international law firms in India would mean a gamut of legal services to ensure compliance, protect interests, and promote growth.
This blog explains why international law firms are important to your business, especially in the Indian context, and why partnering with them is prudent.
A global business tends to face legal issues across different countries. Regulations, taxes, intellectual property, and employment laws vary among countries. International law firms are perceived as having a deep knowledge of the legal systems of various countries. Such expertise advises businesses on different ways of undertaking challenges.
Moreover, such firms hire lawyers who are masters and specialize in international trade laws, mergers and acquisitions, international arbitration, and corporate compliance. These firms also ensure businesses comply with all legal needs not only locally but globally.
International law firms in India are certainly an excellent opportunity for companies in India and companies that want to explore the Indian market. These firms have an in-depth and deeper understanding of Indian laws, along with connections and knowledge of international legal frameworks, that make them the perfect partners for any global business.
International law firms cover almost all significant aspects of legal areas which are essential in doing business. Some of the critical areas are listed below:
To expand a business to international territory, the significance of corporate law across many jurisdictions needs to be well understood. International firms assist in structuring corporates, mergers, and acquisitions; thus, regardless of your requirements, acquiring a company in a foreign territory or a foreign market firm ensures that the transaction complies with both domestic and international law.
Recent mergers and acquisitions in India have predominantly been cross-border transactions. International law firms played an integral role in one recent case. With the immense involvement of major international legal skills, Bhushan Power & Steel was acquired by JSW Steel, with both the Indian and international legal frameworks supporting the deal closure.
Disputes will come knocking on business doors. However, the international context makes it much more complex. International law firms can help unravel cross-border dispute resolution issues, such as arbitration and mediation. Such firms can be very useful in helping businesses solve disputes between parties representing different countries while ensuring that the best legal strategies are adopted to protect them.
In recent times, international arbitration has been popping up explosive cases among Indian companies. For instance, in 2021 alone, a huge number of such cases relating to Indian companies were witnessed at the Singapore International Arbitration Centre. International law firms in India have played an active role in representing the companies and making these outcomes favourable.
Any business, but specifically one operating globally, must be compliant. Global regulations vary significantly, and failure to comply may result in hefty fines or even closure in some jurisdictions. International law firms keep businesses updated with all international regulations, from AML to anti-bribery legislation and export regulations.
International financial regulation has emerged as an essential issue for any business engaging in international trade in India. International law firms provide services to ensure that regulations can be afforded and that legal incompetency risks are minimized.
Intellectual property is a great asset for businesses, and protection on a global scale is too important to ignore. International law firms can help clients obtain, maintain, and enforce intellectual property rights, such as trademarks, patents, and copyrights, in several jurisdictions.
In 2020, a landmark Delhi High Court judgment in the case of Interdigital Technology Corp vs Xiaomi Corporation showed that the better protection of intellectual property through India is deepened while adequately navigating the international legal framework. International law firms in India often work hand-in-glove with businesses also to ensure that business houses have the comfort that their IPs are protected worldwide.
International businesses must operate according to the countries' different tax regulations. Tax treaties, transfer pricing rules, and VAT are difficult concepts to understand. International law firms specialize in giving businesses advice on taxation issues so that they can optimize their tax strategies and remain compliant.
India's participation in international trade agreements also requires businesses to understand international trade laws. International law firms in India guide businesses through the complexities of import-export rules, tariffs, and customs laws.
India is an important market for international legal services, given its growing economy and increasing global business presence. International law firms in India provide an important gateway for cross-border transactions while helping businesses understand the country's legal landscape and laws while working internationally.
For instance, where India has entered into an international trade agreement, such as the Regional Comprehensive Economic Partnership (RCEP), businesses will have to ponder Indian and international trade laws. Global law firms are better at providing that expertise.
Currently, law firms in Kolkata and other metropolitan cities of India serve clients both at home and abroad. Major law firms have now achieved a level of professional connection with their global equivalents, where businesses have access to world legal networks.
International law firms have been in recent years embroiled in some of the biggest legal battles in India. Some of the high-profile cases from the past five years are as under:
Amazon v. Future Retail: This case drew into the limelight in the year 2020 as it involved a cross-border dispute between Amazon and Future Group over the latter's deal with Reliance Industries, presented to arbitration in Singapore, and also before international law firms in India represent both sides in court underlined the importance of international legal expertise in solving complicated business disputes.
Vodafone Tax Case: International Dispute in 2020 In this case, an international arbitration tribunal ruled in favour of Vodafone over the retrospective tax laws against the Indian government. International Law Firms took the side of Vodafone and ensured that their decision came favorable for them.
The Cairn Energy Case
: Cairn Energy was another case in which the firm successfully won an international arbitration case against the Indian government based on tax-related issues in 2021. This tax law issue across borders was handed over to international law firms and used to help businesses navigate and solve such issues.
Kolkata is becoming an important centre for legal services. Several law firms in Kolkata offer specialized services to domestic and international clients. The increase in the expertise of these firms in areas such as international arbitration, mergers and acquisitions, and corporate compliance increases their importance as an integral part of the Indian legal framework.
Kolkata law firms are now also working with international law firms, which allows them to render suitable, smooth, flawless legal services to organizations operating on an international scale. Such alliances ensure that businesses receive the highest level of representation in the marketplace of India as well as abroad.
International law is the most relevant area of study for a business seeking to venture into global markets. International law firms are famous for specializing in cross-border disputes, corporate law, and regulatory compliance. For a business in India, partnerships with international law firms would ensure that it meets the legal requirements at local and international levels.
From new market expansion to intellectual property protection or the resolution of international disputes, international law firms assist in attaining your business goals. As India continues to play a significant role in the world economy, having the right legal partner will continue to be increasingly important.