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Commercial Contracts for clients in Germany

German suppliers, buyers and licensors often work from group templates written for German or EU law. We adapt them so they hold up against an Indian counterparty.

Updated Reviewed by our legal team

Commercial Contracts for clients in Germany
In short

A contract between a German company and an Indian party should state the governing law clearly, choose arbitration rather than courts for disputes, fix a neutral seat such as Singapore or a German city, and comply with Indian rules on stamping, FEMA payments and withholding tax. A German court judgment is hard to enforce in India because Germany is not a reciprocating territory, while a foreign arbitral award can be enforced under the New York Convention.

Document route
German notary, pre-certification, then Indian mission attestation
Time difference
India is 3.5 hours (summer) to 4.5 hours (winter) ahead
Core law
Indian Contract Act 1872
Foreign awards
Part II, Arbitration Act 1996

Commercial Contracts from Germany: how it works

We review the German template against the Indian Contract Act 1872 and the deal itself. Penalty clauses common in German contracts are treated differently in India, where courts award reasonable compensation up to the stated sum rather than enforcing a penalty as such. Post-termination non-compete clauses against an Indian distributor or employee are generally void under section 27. Payment terms should match FEMA rules for import and export payments, and any royalty or service fee paid out of India should account for withholding tax and the rates under India's tax treaty with Germany.

The dispute clause deserves the most attention. Choose an arbitral institution, a seat outside India or within it, the language and the number of arbitrators. If the seat is in Germany, Indian courts can still grant interim relief under section 9 of the Arbitration and Conciliation Act unless the parties exclude it, which is useful for freezing assets in India. Contracts executed in India, or brought into India later, must be stamped under the relevant state law, and an unstamped agreement can face delays when relied on in Indian proceedings.

What clients in Germany should know

  • German general terms and conditions printed on invoices are unlikely to bind an Indian buyer unless they are clearly incorporated into a signed agreement.
  • Bilingual German and English contracts should state which language prevails; Indian courts and arbitrators work in English.
  • Signing electronically is lawful in India for most commercial contracts, but documents that need registration or stamping in India may still require wet signatures and physical stamping.

Step by step from Germany

  1. Video consultation

    A call at a time that suits Germany, after we have read your documents.

  2. Documents signed in Germany

    German notary, pre-certification, then Indian mission attestation

  3. Work in India

    Our team files, appears and follows up in India, and shares scans of everything filed.

  4. Result and handover

    Certified copies and originals are couriered to you in Germany where needed.

The full guide

This page covers what changes when you are in Germany. For the law, the documents and the step-by-step procedure, read our main page on Commercial Contracts, or see all services for clients in Germany and the Doing Business in India practice area.

Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.

Questions from clients in Germany

Should we choose German law for a contract with an Indian supplier?

You can, and an arbitral tribunal will apply it. Mandatory Indian rules, such as FEMA, stamp duty and some competition and consumer laws, still apply to performance in India.

Can we sue our Indian distributor in a German court?

You can, but a German judgment would have to be followed by a fresh suit in India to reach Indian assets. Arbitration avoids this second round.

Is DIS arbitration recognised in India?

Awards made in Germany, including under the DIS rules, are foreign awards that can be enforced in India under Part II of the Arbitration and Conciliation Act, subject to the limited grounds for refusal.

Tell us about your matter

Send the papers you have. We reply to clients in Germany within one working day.

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