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Indian stakeholders must consider varying legal considerations when navigating a cross-border transaction, writes aviation and rail industry GC Aakritee Tiwari

In a time when countries, economies, cultures and people around the world are increasingly interconnected and interdependent, Indian businesses, startups and legal practitioners are increasingly participating in cross-border transactions, ranging from mergers and acquisitions and joint ventures to licensing and service agreements. Such transactions unlock immense opportunities for growth and market expansion, but they also pose unique legal, regulatory and operational challenges. Understanding the contours of doing cross-border deals is crucial for stakeholders looking to navigate these complexities successfully.

This article explores the legal considerations and regulatory frameworks that Indian companies and legal professionals should navigate when engaging in cross-border transactions. It also provides examples drawn from India-UAE and India-Sweden transactions, highlighting legal issues to keep in mind.

Cross-border transactions

At its core, a cross-border transaction involves commercial dealings between entities situated in different jurisdictions. Some of these include:

1. Technology transfers and licensing agreements. Vital for innovation-driven businesses, especially as Indian companies and startups increasingly engage with global partners.
2. International supply or service contracts. Whether sourcing raw materials, exporting goods or offering specialised services abroad, these contracts form the backbone of global trade relationships.
3. M&A with foreign entities. Whether acquiring technology companies in Europe, entering joint ventures in the US or merging with partners in Southeast Asia, such transactions open doors to new markets, customers and innovation. Each type of transaction has its own legal nuances, and successful execution requires close attention to both Indian laws and the foreign legal environment.

Legal frameworks

Several regulatory regimes govern cross-border transactions involving Indian entities.