How to avoid a business conflict in India

India offers enormous business opportunities for foreign companies, but entrepreneurs must be well prepared. Five tips to prevent business conflict in India.

1. Know who you are doing business with
It is advisable to conduct thorough background research on the party you want to do business with in India. What is their reputation in the market? Who are their most important customers? What does the management team look like? Are they also the shareholders? Are there any legal cases pending or is the company being sued? Have there been any legal conflicts in the past? This information is publicly available and can be made clear by specialized Indian parties.

2. Check the experiences of international customers
The question you should always ask Indian buyers as an exporter is whether they often do business with international companies. That says something about the mentality and professionalism of the company. Do not take the Indian party at their word, but also check with the foreign party whether it is correct and how the collaboration is going.

3. Engage an Indian lawyer in good time
Ensure that you have cooperation documents drawn up and checked by a specialized Indian lawyer. Do not wait for a contract proposal from the Indian party, but draw up your own contract together with an Indian lawyer. Then have your Indian business partner look at it and implement any changes together in a second revision round. Such a thorough approach ensures the involvement of both parties and results in an agreement that takes the Indian context into account.

4. Intellectual property
India has very extensive legislation on intellectual property. This includes all aspects that entrepreneurs may encounter: from copyright and trademarks to industrial design and trade and brand names. There are therefore numerous options for entrepreneurs to properly protect their intellectual property in India. Make sure that you always have good contract templates with strong clauses that address and protect intellectual property (IP). Good preparation and contractual protection of your intellectual property helps enormously in the event of escalation.

5. Relationship, relationship, relationship
Finally, apart from the formal safeguards you need to take, there is no more effective way to prevent business conflicts than to create a good, personal business relationship. When you have a good relationship with your Indian business partner, conflicts will rarely escalate through formal channels.