What are the legal requirements of outsourcing?

Generally, the following laws govern most outsourcing arrangements:

• Indian Contract Act 1872 (ICA).
• Indian Stamp Act 1899 and the applicable Indian state stamping laws (Stamp Act).
• Specific Relief Act 1963 (SRA).
• Code of Civil Procedure 1909.
• Arbitration and Conciliation Act 1996 (Arbitration Act).

Can a private limited company do multiple business?

Yes, a company can register for multiple businesses, but it depends on whether the activities are related or not. The company can carry more than one activity with the consent of the members. However, it should not make the manpower service as its lead objective or main objective of the company.

Is outsourcing to India legal?

No, it’s not illegal, per se, to offshore work to India. However, it is entirely possible for a specific contract to be illegally offshored to India, or indeed anywhere else.

Which are the various legal issues in an outsourcing contract?

One of the most crucial legal issues in an outsourcing contract is inadequate provisions on data security. A survey reports 31\% of businesses experienced a security breach attempt while they were working with an outsourcing partner. The contract must have clearly mentioned provisions related to data security.

Why do US companies outsource to India?

Outsourcing to India allows companies to achieve significant cost savings. This is because the cost of hiring developers in India is significantly lower than that of the developed countries. Apart from the personnel costs, businesses can save a lot on office space and IT infrastructure by outsourcing to India.

When company can outsource their activities?

Every company process that can be performed from an off-the-shore location can be outsourced. This includes functions such as payroll, transaction processing, transcription services, call center services, image manipulation services, order and inventory management, just to name a few.

Can a limited company own another limited company?

Own Another Company You can use your limited company to own and operate another company if you choose. A loss from the subsidiary company could be deducted from profits at the main company. You can also develop the separate company for sale.