Contracts and commercial law in India

Full guide · Source-checked research98% of statements checked against a source107 checked against an official source34 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed

• The labour codes make appointment letters mandatory for all workers.

  Central labour codes.Ministry of Labour and Employment (Press Information Bureau release) · checked 2026-10-18

• Foreign direct investment is prohibited in real estate business and construction of farmhouses, but township development, construction of residential or commercial premises, roads or bridges, and SEBI-registered REITs are outside the prohibition.

  Central FDI rule; acquisition of land is separately governed by FEMA property rules and state land laws.Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Investment Facilitation Portal · checked 2026-10-18

• The Digital Personal Data Protection Act 2023 applies to processing of digital personal data within India and to processing outside India if it is connected with offering goods or services to Data Principals in India.

  Central law. Section 3 of the Act; section 3 is among the provisions commencing on 13 May 2027.India Code (Legislative Department, Ministry of Law and Justice) · checked 2026-10-18

• A child under the DPDP Act is an individual who has not completed eighteen years, and processing a child's personal data requires verifiable consent of a parent or lawful guardian.

  Sections 2(f) and 9; tracking, behavioural monitoring and targeted advertising directed at children are barred subject to exemptions prescribed by the Rules. In force from 13 May 2027.India Code (Legislative Department, Ministry of Law and Justice) · checked 2026-10-18

• The Central Government may by notification restrict the transfer of personal data by a Data Fiduciary for processing to countries or territories outside India that it notifies, and any other Indian law providing a higher degree of protection or restriction on transfers continues to apply.

  Section 16(1) and (2) of the DPDP Act; commences 13 May 2027. No restricted-country notification was confirmed as at 18 October 2026.India Code (Legislative Department, Ministry of Law and Justice) · checked 2026-10-18

• Giving or promising an undue advantage to another person with the intention of inducing or rewarding a public servant's improper performance of a public duty is an offence punishable with imprisonment of up to seven years, a fine, or both.

  Section 8, Prevention of Corruption Act 1988, as substituted in 2018. 'Undue advantage' means any gratification other than legal remuneration (section 2(d)). Central law.Legislative Department, Ministry of Law and Justice (India Code) · checked 2026-10-19

• A commercial organisation is punishable with a fine if any person associated with it gives or promises an undue advantage to a public servant intending to obtain or retain business, or an advantage in the conduct of business, for the organisation.

  Section 9(1), Prevention of Corruption Act 1988. An associated person is anyone who performs services for or on behalf of the organisation. Central law.Legislative Department, Ministry of Law and Justice (India Code) · checked 2026-10-19

• For the corporate bribery offence, a commercial organisation includes a body incorporated outside India, or a partnership or association formed outside India, that carries on a business or part of a business in any part of India.

  Section 9(3), Prevention of Corruption Act 1988; bodies incorporated or formed in India are covered whether they carry on business in India or outside India. Central law.Legislative Department, Ministry of Law and Justice (India Code) · checked 2026-10-19

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