A contract between a South African and an Indian party should state the governing law, the seat and rules of arbitration, payment terms in a stated currency and the courts or tribunal for interim relief. Because South African court judgments are not directly executable in India, arbitration with a seat in a New York Convention country notified by India is usually the safer choice. We draft and review the Indian side and coordinate with your South African attorney.
- Document route
- South African notary, then apostille from a High Court registrar or DIRCO
- Time difference
- IST is 3h30 ahead of South Africa all year (no daylight saving)
- Core law
- Indian Contract Act 1872
- Foreign awards
- Part II, Arbitration Act 1996
Commercial Contracts from South Africa: how it works
We start with the commercial deal and the risks: who pays first, who carries the goods, what happens if the Indian party delays delivery or the South African buyer refuses goods. We then draft or review the contract under the chosen law, usually English, Indian or South African, with an arbitration clause naming the seat, institution, language and number of arbitrators. For Indian counterparties we add stamp duty compliance, a clause on interim relief in Indian courts under section 9 of the Arbitration and Conciliation Act and clear notice addresses.
If the contract is to be signed in India, stamp duty is paid there; if signed in South Africa, the Indian party pays duty within three months of the contract reaching India, before it can be relied on in Indian proceedings. Unstamped agreements cannot be used as evidence until duty and penalty are paid. We also check that the seat country is notified by India under section 44 of the Arbitration and Conciliation Act, so that the award can be enforced in India under Part II.
What clients in South Africa should know
- South African exchange control may affect advance payments and guarantees from the South African side, so the payment schedule should match what the authorised dealer will allow.
- Indian suppliers often insist on letters of credit; a confirmed letter of credit protects a South African buyer against non-delivery more effectively than a bare contract.
- Indian commercial courts handle disputes above the specified value, with pre-institution mediation required for most claims that do not seek urgent relief.
Step by step from South Africa
Video consultation
A call at a time that suits South Africa, after we have read your documents.
Documents signed in South Africa
South African notary, then apostille from a High Court registrar or DIRCO
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in South Africa where needed.
The full guide
This page covers what changes when you are in South Africa. 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 South Africa and the Doing Business in India practice area.
Questions from clients in South Africa
Should we choose South African or Indian law?
Either can work. Many parties choose a neutral law such as English law with arbitration in a neutral seat, which Indian courts respect.
Can a South African court judgment be enforced against our Indian supplier?
Only through a fresh suit in India. An arbitral award from a notified seat is usually faster to enforce.
Does an e-signed contract work in India?
Electronic signatures are valid under the Information Technology Act for most commercial contracts, though stamp duty must still be paid.