stikeman elliott s.e.n.c.r.l., s.r.l. a spects lÉgaux Éviter les piÈges Érik richer la flèche...

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STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l. www.stikeman.com ASPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s.N.C.R.L. LE MARCHÉ INDIEN EN 2012 10881061

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Page 1: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l. www.stikeman.com

ASPECTS LÉGAUXÉVITER LES PIÈGES

Érik Richer La FlècheStikeman Elliott s.N.C.R.L.

LE MARCHÉ INDIEN EN 2012

10881061

Page 2: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

DO NOT LET THE FOLLOWING DULL YOUR SENSES :

Commonwealth Country

English

Common law

Rule of law

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Page 3: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

INDIA IS A VERY DIFFERENT PLACE

India will not adapt to you

you will have to adapt to India

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Page 4: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

In 1990 India and China had approximately same GDP per capita

Today China's GDP per capita is about 3.5 times greater than India

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Page 5: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Ease of Doing Business(June 2012, World Bank Group)

Canada

17

Easiest to do in Canada

Starting a business

3

In India

166

India

132

Easiest to do in India

Getting credit

23

Same as Canada

23

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Page 6: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Doing business in India

is complicated for Indians

as well as foreigners

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Page 7: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Most sectors are open to market but in many sectors there are government approvals, ownership ceilings and other requirements

Chose your sector and the extent of your involvement carefully

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Page 8: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Also chose the area where you are going to do business

India is a big place with lots of variations

Doing business in Kolkata is a lot more difficult than in Hyderabad

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Page 9: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

CANADIAN INTERNATIONAL COUNCIL

Doing business in India: success, failure and the prospects for Canada (Douglas Goold, November 2010)

Some recommendations:

1. Assess India market critically

2. Be prepared for long-term commitment

3. Understand India’s unique history and culture

4. Get help with your entry-strategy

5. Take advantage of the services offered by Canada

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Page 10: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

PRINCIPAL RISKS

Excessive Regulation (Licence Raj)

Inadequate laws

Slow/cumbersome administration

Slow judicial process (enforcing contracts : 182)

Corruption (transparency international CPI (2011) 95)

Constant renegotiation

Fraud

IP piracy/protection

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Page 11: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Mitigation Strategy

If you believe that party best able to prevent or control a risk should deal with it then transfer the risk mentioned above to the Indian party

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Page 12: STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l.  A SPECTS LÉGAUX ÉVITER LES PIÈGES Érik Richer La Flèche Stikeman Elliott s. N. C. R. L. LE MARCHÉ

Most importantly:

Chose your local partner

very, very carefully

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