What is the Relationship and Difference Between Corporate and Commercial Law?

by  Adv. Priyanka Sampathy  




3 mins


corporate and commercial laws


Incorporation can turn any business into a separate legal entity as there is some kind of business performed every time by a company or organization to increase profits and productivity. There lies a significant difference between corporate and commercial law, which is to be acknowledged before starting any business.

Is business related to law?

  • A product or service is bought or used at a certain price and sold at higher prices; this is simply business in the purest form.
  • The main goal is to maximize profits and increase productivity and stay optimized with the corporate and commercial law.
  • Many people invest time and effort in business and even in partnerships; each person has a role to play, so ultimately, their interests are involved.
  • These interests have been safeguarded by certain laws which are in place to regulate the buying and selling of goods/ services.
  • At present, the government has maintained Contract laws and agreement laws which help partners resolve matters and enter into business peacefully.
  • There are labor laws protecting the rights of day-to-day workers. Employee protection laws safeguard the employees from exploitation, and many more this aspect of corporate and commercial laws.
  • The relationship between business and law establishes when one person is harmoniously surviving with others doing business in corporate and commercial law as they both gain profits under rules and regulations which are prescribed as per the law.
  • It is only natural that every person’s interest is secured and guarded to provide them equal advantages in business and the economy.

    Seeking To Understand The Difference Between Corporate And Commercial Law? Get Expert Guidance

Is Commercial and Corporate law the same?

  • A corporate entity is required for corporate law to take action, which includes investors, creditors, management in business, efficient understanding, and compliance with legal obligations and formalities. 
  • A corporate lawyer helps in taking care of all these contents, and one must carefully select the way to utilize it in corporate and commercial law.
  • Any state of business and exchange related to it is deciphered by commercial law. The commercial law aspects include every transaction and trade with the required legal formalities. 
  • These corporate and commercial laws are interconnected and have similarities, too, in a few ways.
  • The corporate and commercial laws are wrapped together in a fair amount of transactions that interchange every time for every person. 
  • This is where corporate and commercial law needs to play a role so that each person’s interest and production can be secured.

Differences between Corporate and Commercial Law

There are certain differences between corporate and commercial laws, which may have underlying aspects and are dealt with differently, where any individual may take the help of a business lawyer to understand each context thoroughly.

These are as follows:

  1. Administration: In corporate and commercial laws, the former is mainly administered and directed by the Ministry of Corporate Affairs, and the latter is administered by both state and Central Government laws.
  2. Regulation: In corporate and commercial laws, the commercial is regulated by contract provisions, and the corporate aspect is regulated by the Companies Act of 2013.
  3. Business deals: Corporate and commercial law states that corporate deals with the sale and purchase of goods/services in the market and the economy, whereas commercial deals with the entire business dealings.
  4. Scope: The corporate aspect can permit obligations and rights, but the commercial standing is solely focused on the legal impact on the business.
  5. Legalities: The corporate and commercial laws have their legal issues related to business functions, operations, and commercial focus on the company’s foundation.
  6. Benefits: Corporate law maintains the interaction, management, and handling of creditors. The commercial is about regulating tax implications, benefits, and liabilities.
  7. Contracts: In corporate and commercial laws, the corporation handles the business contract drafting, and the commercial handle the reviewing of the contracts.

    Get Expert Help To Understand The Commercial Law And It's Implications

Various types of Corporate Law

The corporate and commercial laws are laid down by various legislation, and some of them that manage the corporate sector are as follows:

  • The Indian Contract Act, of 1872
  • The Companies Act, 2013
  • Provisions of Corporate Governance
  • Depositories Act, 1996
  • Income Tax Act, 1961
  • Securities Contract Regulation Act, 1956
  • Securities and exchange board of India act 1992

Various types of Commercial Laws

The corporate and commercial laws are laid down by various legislation, and some of them that manage the commercial sector are as follows:

  • The Indian Contract Act of 1872
  • The sale of Goods Act 1930
  • The Indian Partnership Act of 1932
  • The Limited Liability Partnership Act 2008
  • Companies Act 2013
  • Arbitration and Conciliation Act 1996

Roles of a Business Lawyer

A business lawyer or corporate lawyer/attorney is responsible for managing and handling business issues and giving legal advice. They are legal professionals who handle taxation, transactions in business, and every intellectual property that might be involved.

They work full-time in their own office and rarely visit courts as they solve queries on business-related terms, draft contracts, and argue cases for clients.

  • In corporate and commercial laws, business lawyers help individuals start a business.
  • They help to write contracts and agreements in corporate and commercial laws.
  • They help mitigate disputes in court or out of court.
  • Take care of claims and acquisitions.
  • Helps in risk management.

    Get Legal Clarity On The Corporate Law And How It's Different With Commercial Law


In the world of corporate and commercial laws, there are many features related to such laws and businesses that one must tread carefully to maximize their interests and benefits by taking necessary legal advice.

Consulting with a professional business lawyer beforehand is a good option as they can help with drafting, merging, sorting, handling, and resolving every nitty gritty.

Adv. Priyanka Sampathy

Adv. Priyanka Sampathy


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Priyanka Sampathy is a legal consultant who prioritises ethical and professional conduct while striving to achieve desired outcomes. With over 15 years of independent practice, she has significant expertise in handling legal cases. Her exceptional communication skills enable her to express arguments in a clear and persuasive manner, both in writing and verbally, in Hindi, English, and Telugu.

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