Joint Venture Company


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A joint venture (JV) is a tactical partnership where 02 (two) or more individuals /companies / partnership firms /corporations/legal entities agree to put in goods, services and/or capital to a uniform commercial project by entering into an agreement. The parties agree to create a new entity by contributing capital and share income, expenses, liabilities and control in newly formed entity. India’s economic growth is attracting business houses from across the world. Joint Venture is a popular method to enter a country whose legal and business environment is unknown. In India there is no restriction for entering into a Joint Venture Agreement, except for capacity to contract under the law. Any person competent to contract, a company, partnership firm or a corporation can enter into a Joint Venture. A joint venture can be organized as a partnership firm, a corporation or any other form of business organization which the participating firms choose to select.

 

A Joint Venture can be formed for any lawful business purpose. Joint Ventures are mainly formed for the purpose of technology transfer, research and development, supply of technological know-how etc. Interestingly, the foreign companies mainly form Joint Venture for gaining market access in a particular country. In sectors where 100 percent FDI is not allowed in India, a joint venture is the best medium, offering a low-risk option for companies wanting to enter into the vibrant Indian market. Under the Indian Law, a Joint Venture is governed primarily by the Indian Contract Act, Foreign Direct Investment (FDI) Policy, the Foreign Exchange Management Act, 1999 (FEMA) with that several aspects of Corporate Laws are also applicable.

PAN Card

Self attested PAN Card issued by I.T. Department

Aadhar Card

Self attested Aadhar Card issued by UIDAI

Photograph

Photograph of all members

Address Proof

Electricity bill or other utility bill

Rent Agreement

Rent agreement or NOC

Cancel Cheque

Cancel cheque of the applicant

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Features of Joint Venture

Objective - A Joint Venture (JV) is created with a purpose that is clearly specified in the joint venture agreement.

Contract - A Joint Venture is governed by a contract, the terms and conditions of which are enumerated in the Agreement.

Project - JV may be created for some specific project or duration and shall terminate once that project is completed or the duration comes to an end.

Control - The controlling rights of each party are defined in the agreement as there is no special act or governing body which controls the JV.

Profits & Losses - The profits earned or losses incurred are distributed as mentioned in the agreement between the parties.

Benefits of Joint Venture in India

  • Joint Venture provides an opportunity to learn new insights and expertise.
  • Access to financial resource of the Indian partners.
  • Established distribution and marketing set up of the Indian partner.
  • In sectors where 100% FDI is not allowed, JV offers a low-risk option for companies.
  • Joint Ventures can lead to Innovative ideas or reduce cost or enhance productivity.
  • In Joint Ventures, there is a scope of building networks and relationships stronger.
  • It is a temporary arrangement and comes to an end once the purpose is fulfilled.

Documents required

PAN Card

Self attested PAN Card issued by I.T. Department

Aadhar Card

Self attested Aadhar Card issued by UIDAI

Photograph

Photograph of all members

Address Proof

Electricity bill or other utility bill

Rent Agreement

Rent agreement or NOC

Cancel Cheque

Cancel cheque of the applicant

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