INTRODUCTION Artificial Intelligence ("AI") is no longer a futuristic concept confined to technology companies. Today, AI-powered tools are increasingly being used by employees across industries for drafting documents, conducting research, analysing data, generating content, coding software, preparing presentations and supporting business decision-making. The widespread availability of generative AI tools such as ChatGPT, Gemini, Claude, Co-pilot and other AI tools has fundamentally changed the way work is performed. While, these technologies offer substantial benefits in terms of productivity, efficiency and innovation, they also create new legal, commercial and regulatory risks for employers. As organisations embrace AI-enabled workplaces, a critical question arises: Are existing employment…

Board deadlocks can be one of the most disruptive governance challenges under the Companies Act, 2013 (“Act”). When directors cease to cooperate, whether by refusing to attend meetings, withholding approvals, or otherwise obstructing the company’s affairs, the company may find itself in a governance impasse with limited options available at the board level. Operations may come to a standstill, statutory compliance may be compromised, and the company may begin to suffer significant financial losses. The problem becomes even more acute where the company has only two directors. In such cases, the absence or non-cooperation of one director may prevent the constitution…

Back in April 2020, India introduced Press Note 3 (2020 Series) (“Press Note 3”), requiring prior Government approval for any investment where the investor (or its beneficial owner) is from a country sharing a land border with India. The intent was to protect Indian companies from exploitative acquisitions, particularly during COVID-19, and address geopolitical concerns around Chinese capital. But Press Note 3 had a major gap, there was no defined threshold for "beneficial ownership". This left global venture capital and private equity funds in uncertainty. Even minimal, passive exposure to investors from China, Pakistan, Bangladesh or other land-bordering countries could potentially trigger the Government approval requirement, a process…

The rapid integration of artificial intelligence (“AI”) into Indian commercial and professional ecosystems has transformed how organisations operate, streamlining workflows, enhancing decision-making, and redefining efficiency standards across sectors. Yet, this technological shift is not without risk. As businesses adopt AI-driven platforms to analyse, draft, or manage data, they also expose themselves to heightened vulnerabilities surrounding data privacy, confidentiality, and intellectual property (“IP”). Safeguarding sensitive information and proprietary assets has thus become not only a matter of commercial necessity but a continuing legal and ethical imperative in an AI-enabled environment. THE EVOLVING RISK LANDSCAPE India currently lacks a targeted law that defines data…

INTRODUCTION India’s digital health market has expanded rapidly, and software-driven tools now play a critical role in diagnostics, monitoring and clinical decision support. However, the regulatory treatment of such tools has often been unclear, particularly where software operates independently of hardware or relies on cloud-based functionality. To address these gaps, the Central Drugs Standard Control Organisation (CDSCO) has released its Draft Guidance Document on Medical Device Software, proposing a structured framework for regulating Software as a Medical Device (SaMD) and Software in a Medical Device (SiMD) under the Medical Devices Rules, 2017 (MDR). CLARITY ON WHAT QUALIFIES AS A MEDICAL DEVICE The draft…

What exactly is a startup in India? Great question! Not every new business qualifies as a “startup” under Indian law. To be officially treated as one, you have to ensure: You’re set up in the right form, meaning you are registered as: a Private Limited Company (as defined under the Companies Act, 2013), or a Registered Partnership Firm (registered under Section 59, the Partnership Act, 1932), or an LLP (under the Limited Liability Partnership Act, 2008). You’re truly independent; your business should not be a subsidiary or holding company of any Indian or foreign entity. You’re still early-stage; less than 10 years old from the date of…

India’s recent trade policies and maritime incentives signal a new era of openness, particularly for stakeholders from the European Free Trade Association (EFTA) states and the United Kingdom (UK) eyeing opportunities in the Indian maritime sector. With free trade agreements now in place and the introduction of the INR 25,000-crore Maritime Development Fund (MDF) to finance long-term maritime growth, India is strategically aligning market access, incentives, and long-term finance in ways that meaningfully expand entry routes for global players. FREE TRADE AGREEMENTS AS CATALYSTS FOR MARKET ACCESS The India–UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025 after over three…

The concept of permanent establishment (PE) is fundamentally rooted in the idea that a business must demonstrate a continuous and tangible connection with a jurisdiction before that state can levy taxes on its profits. Traditionally, this was understood as a physical "fixed place" of business, such as an office or factory. However, as corporate structures and cross-border transactions grew more complex, relying exclusively on fixed place PE risked excluding various significant business activities from taxation in the source country. Background: In a landmark decision delivered on July 24, 2025, the Indian Supreme Court tackled the question of whether Hyatt International Southwest Asia…

The Hon’ble Supreme Court (“SC”) of India has issued a landmark verdict in the case of Daivshala and Ors. v. Oriental Insurance Company Limited and Anr., which significantly expands the interpretation of compensation claims under the Employees’ Compensation Act, 1923 (“EC Act”). The SC held that injuries sustained by employees while commuting to their workplace may, in appropriate circumstances, fall within the ambit of accidents “arising out of and in the course of employment”. This interpretation marks a departure from earlier restrictive views and reflects the SC’s recognition that the risks faced by employees on their way to work can be…

Safeguarding confidential and sensitive information has become a cornerstone of modern business operations in India. In an age where competitive advantage and regulatory compliance depend on the protection of intellectual property, business data and client records, even a single lapse can result in the loss of goodwill, legal exposure and lasting damage to commercial value. Whether it is a startup protecting a product idea, a tech company securing proprietary code or a service provider handling customer data, managing confidential information effectively is now central to trust and business continuity. The term confidential information includes trade secrets, business data, proprietary know-how and other…

In today’s digital-driven world, software is more than just a tool; it is a critical business asset that powers operations and growth. To safeguard this asset, companies enter into a Software Licensing Agreement (SLA), which defines how third parties may use their software. The software owner (Licensor) grants specific rights to the end-user (Licensee) under controlled terms, ensuring that while the Licensee benefits from access to the software, the Licensor’s intellectual property (IP) remains protected. A well-drafted SLA prevents misuse, builds clarity, and fosters long-term business relationships. The following clauses are essential to strengthen your SLA: Scope of Software Licence Defining the…

With the dawn of the Digital Personal Data Protection Act, 2023 (“DPDP Act”), Indian businesses now face a decisive shift in how personal data must be collected, processed, stored and protected. As the Central Government advances the rule-making process under the DPDP Act, and parallel sectoral regulators like the Reserve Bank of India (RBI) tighten data localisation requirements, the compliance burden on businesses in India has increased significantly. The year 2025 is likely to be a watershed moment in India’s data privacy regime. The Draft Rules framed under the DPDP Act, issued in January this year, provide businesses with operational…

In a major development poised to reshape the economic relationship between two global powerhouses, on May 6, 2025, India and the United Kingdom have concluded negotiations on a comprehensive Free Trade Agreement (FTA), marking the culmination of over three years of negotiations. This FTA offers immense opportunities for businesses on both sides. Key Highlights of the FTA → For India Tariff Elimination on Exports: 99% of Indian goods exported to the UK will enjoy zero tariffs, benefiting key sectors like textiles, leather, gems & jewellery, pharmaceuticals, and engineering goods. Automobile Sector Boost: Tariffs on Indian automotive exports, previously up to 100%, will reduce to…

Non-Disclosure Agreements, also known as NDAs or Confidentiality Agreements, are agreements which legally bind individuals or organizations to secrecy and confidentiality regarding certain shared information such as data, trade secrets, unpatented inventions, etc. and allows the disclosure of such confidential information without the risk of use of that information for any other purposes than intended, or disclosure by the receiving party to any third party. Depending upon the nature of confidential information shared between the parties, NDAs may be made either mutual or unilateral.

In contrast to the previous regulations on overseas investment, the round-tripping structures under the OI Rules1 and OI Regulations2 do not require any explicit approval from the RBI, provided that, such structures must be confined to two layers, as prohibitions persist for structures exceeding this limit.

The Securities and Exchange Board of India (SEBI) introduced certain amendments to the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) vide its notification dated 15 November 2022 (“Fourth Amendment”). The Fourth Amendment primarily focuses on the following items:

In the current start-up dominated entrepreneurial world, companies have recognised the heating up competition for talent. With the increase in competition, companies have to ensure that the talented people are retained in the company by offering them incentives. The most common method to offer incentives to the employees is by issuing options under an Employee Stock Option Plan (ESOP). An alternate incentive offered by the companies to the employees is phantom stocks.

JURISDICTION: European Union UPDATE: EUIPO Proposes Classification of NFTs and Virtual Goods Given the number of applications for protection of intellectual property rights that are being received by the European Union Intellectual Property Office (“EUIPO”) containing terms such as ‘virtual goods’ and ‘non-fungible token’ (“NFT”), the following approach has been proposed for classification of such goods. Virtual goods and NFTs are proposed to be included under Class 9 of the Nice Classification which includes recorded and downloadable media, computer software, blank digital or analogue recording and storage media among others. EUIPO clarifies that the terms virtual goods and NFTs cannot be accepted on their…

Foreign Direct Investment (“FDI”) plays a pivotal role in transforming the economy of any country, especially the developing ones. Bhutan, being a slow developing country actively encourages FDI to strengthen their economy. Hence, towards making the Foreign Direct Investment policy, 2019 (“FDI Policy”) more relevant and investor-friendly, the policy was periodically revised by the Bhutanese/Royal Government.

Flow of direct investment reflects unification of the economy with the world. Overseas Direct Investment (“ODI”) showcases the country’s capability to venture beyond the domestic arena. ODI is a strategy where the money flows out of the domestic country into a foreign country. In the Indian context, exports have been a predominant way of reaching the global markets, however, in the last few decades, increase in overseas investment has been playing a key role in globalizing the operations of the Indian entities.