Deep-Dive Advisory
What Legal Due Diligence Involves — and When Indian Businesses Need It
The most requested exercise in corporate legal advisory, explained in plain English.
Legal due diligence is a structured investigation into a company's legal affairs — its corporate records and ROC filings, shareholder and founder agreements, key commercial contracts, licences, employment and labour compliance, pending or threatened disputes, and ownership of trademarks and other intellectual property. The goal is to surface hidden risks and liabilities before they surface as deal-breakers.
Indian businesses typically need legal due diligence at four moments: before raising equity funding (investors will run diligence on you, so becoming diligence-ready first protects your valuation), before acquiring or merging with another business, before entering a significant joint venture or licensing arrangement, and before a promoter exit or share transfer. The output is a report that flags red-line issues and fixable gaps, usually with a remediation plan you can complete before the transaction closes.
Key Regulations Every Business in India Must Navigate
- Companies Act, 2013: Governs incorporation, board processes, director duties, related-party transactions and annual compliance filings for every registered company.
- FEMA: The Foreign Exchange Management Act regulates foreign investment into India and the reporting obligations of foreign-owned entities — see our dedicated FEMA compliance services.
- SEBI Regulations: Apply when a company raises capital from the public, issues securities, or moves toward a listing.
- Labour Codes: India is consolidating its labour laws into four new codes; until they are fully notified (implementation timelines vary by state — verify current status for your state), existing laws on wages, provident fund, ESIC and shops & establishments continue to apply.
- Contract & IP Law: The Indian Contract Act, 1872 underpins every commercial agreement, while trademark registration and related IP laws protect your brand and creations.
Retainer vs. Project-Based Advisory: How Pricing Works
A monthly retainer gives you an on-demand legal team for a predictable fixed fee — ideal for ongoing contract review, company law advisory queries and day-to-day compliance questions. Project-based engagements are quoted as a fixed scope for a defined deliverable, such as a due diligence exercise, a shareholders' agreement or a compliance audit. Many startups begin project-based and move to a retainer as their legal volume grows. Exact fees depend on scope and complexity, so we confirm pricing upfront in a written proposal before any work begins.