Legal and Regulatory

Framework

Objectives:

After studying this unit, you

should be able to:
Recognise the legal
framework of business
Define the laws applicable to
business
Discuss the laws governing
business

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Lecture Outline

Introduction

Scope of Business Law

Sources of Law

Sources of Indian Business Laws

Commercial Laws

Labour Laws

Corporate Laws

Taxation Laws

Financial laws

Miscellaneous Laws

Summary

Check Your Learning

Activity

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Introduction
Legal and regulatory framework of business refers to
the norms and
stipulations laid down by laws, legislations and
regulations that define the
behavioural boundaries for business activity and
thereby govern business,
trade and commerce.
The major purposes of business legislation include
laying down laws
governing all aspects of business, protection of
companies from unfair
competition.
The legal environment becomes more complicated as
organisations expand
globally and face governmental structures quite
different from those within
their own countries.
In this session, we will get an overview of the
complexities of legal and
regulatory framework impacting business in India. We
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Scope of Business
Law
The ambit of business
law spreads across the following
areas related to business:

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Sources of Law

here are various sources which can be classified as under:

Sources of Indian
Business Laws

of the business laws of India have their roots in the British laws such

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Commercial Laws

Major commercial laws in India are:

Indian Contract Act, 1872

Sales of Goods Act, 1930

Indian Partnership Act, 1932

Indian Negotiable Instruments Act, 1881

Industries(Development and Regulation) Act, 1951

Consumer Protection Act, 1986

Competition Act, 2002

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Labour Laws

abour laws enacted by Indian government are :

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Corporate Laws
Corporate laws are:

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Taxation Laws

ax on income is imposed under the following five heads:

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Financial Laws

The specific aims of financial laws are:

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Miscellaneous Laws
Miscellaneous laws are :

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Summary
The sources of law can be categorised into formal and
material sources. The
latter comprises legal and historical sources.
Sources of business laws in India are the English mercantile
law, statutory law,
judicial decisions and customs and usage.
There are various categories of laws and regulations
applicable to business in
India such as commercial, labour, corporate, taxation,
financial and
miscellaneous laws.
The tax on income is imposed under the income from house
and property,
income from business and profession, income from salaries,
income in the form
of capital gains and income from other sources.

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Check Your Learning

1. What are the sources of business laws in India?
Ans: The sources of business laws in India are:
a. English mercantile law
b. Statutory law
c. Judicial decisions
d. Customs and usage
2. List the Corporate laws.
Ans: Corporate laws are:
a. Companies Act
b. Foreign Exchange and Management
Act
c. The Foreign Trade Act

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Activity

Assume that you have recently joined as a financial

manager in a textile company and you want to pay
income tax then for which of the income of the
company will you pay income tax?

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