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EADigest > Business law


7 mons ago

Difference Between Commercial and Corporate Law.

Author: EA Digest
Category : Business law

India is increasingly becoming a hub for multi-national companies along with creating a massive wave of entrepreneurs. With business becoming the strong backbone of our economy, it is essential to understand the meaning, importance, and difference between corporate law and commercial law in India. Read on this article to know more.

What is corporate law?

As the name clearly suggests, corporate law deals with the legal matters related to the corporate elements of the company. It is an independent and specialized branch of law which is closely associated with the Companies Act, 2013, as it deals with the structures of the company. The corporate law covers general corporate matters such as:-

  1. Incorporation of the company.
  2. Listing of the company.
  3. Dissolution of the company.
  4. Shareholder rights.
  5. Directors’ rights.
  6. Secretarial matters.
  7. Articles of Association.
  8. Board meetings.
  9. Mergers or Acquisitions.
  10. Restructuring of entities etc.

Since every business and its needs are different, the corporate law generally sees a large variance in cases owing to these differentiating business factors.

What is commercial law?

The commercial law deals primarily with the inter-organizational communications and the communications between organizations and third parties which are acting externally. This helps in explaining that commercial law is applied to the activities that include trade and commerce. It is applicable in matters such as:-

  1. Trade and commerce.
  2. Corporate contracts.
  3. Manufacturing rules and regulations.
  4. Permits.
  5. Affiliate understandings.
  6. Licenses.
  7. Protection of innovated rights etc.


To condense it, we can say that commercial law gives the guidelines for traders as to how they should lead their business.

The relation between corporate and commercial law

Even though used in different contexts, the corporate law and commercial law are the terms which are fairly inclusive. While the corporate law deals with the organization structure and related corporate activities, commercial law is associated with the dealings of the organization which means that they both co-exist in a space where both are equally important for a business to operate smoothly within the legal prescription.


The corporate law and commercial law in India are derived and are largely based on the following sources:-

  1. Customs and usages
  2. Business mercantile law.
  3. Various acts such as the Indian Contract Act, 1872, The Sale of Goods Act, 1930, The Partnership Act, 1932, The Companies Act, 2013 etc.


Both corporate and commercial law is important and few of the reasons can be briefly stated below:-

  1. They regulate the business legally.
  2. Governing the trade between the business and the consumers.
  3. The resolution of conflicts and disputes becomes easy with the legal framework.
  4. It dictates the legal responsibilities of a business and a consumer.
  5. It helps in to understand the legalities and technicalities of a business.


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