An entrepreneur has to take into account the basic regulatory
requirements of the country in order to ensure sustainability of the profits
and productivity of his/her business. The most important regulation relates
to the environment. The environmental regulatory requirements envisage
a wide legislative framework covering every aspect of environment protection.
Broadly, it includes the emission standards for air, noise, water, etc.
Separate set of laws for emission of hazardous wastes have also been enacted.
Every industry has to abide by these guidelines and parameters for environmental
An organization for its smooth and effective functioning,
must ensure health and safety of its employees. The major legislations
relating to Occupational Health and Safety in India are:- the Factories
Act, 1948; the Mines Act, 1952 and the Dock Workers (Safety, Health &
Welfare) Act, 1986. The Directorate General of Mines Safety (DGMS) and
the Directorate General of Factory Advice Service and Labour Institutes
(DGFASLI) are the two field organisations of the Ministry of Labour and
Employment in the area of occupational safety and health in mines, factories
Besides, the Government of India has taken steps like,
announcing a competition policy, enacting Competition Act, 2002 and setting
up of Competition Commission of India , in order to ensure a healthy and
fair competition in the market economy. These aim to prohibit the anti-competitive
business practices, abuse of dominance by an enterprise as well as regulate
various business combinations like mergers and acquisitions.
For regulation of the export and import of goods and services
an entrepreneur has to abide by the Foreign Trade (Development and Regulation)
Act, 1992 and the EXIM policy announced by the Government from time to
time. The Ministry of Commerce and Industry is the most important organ
concerned with the promotion and regulation of the foreign trade in India.
The Ministry has an elaborate organizational set up to look after the
various aspects of trade. Within the Ministry, the Department of Commerce
is responsible for formulating and implementing the foreign trade policy.