Joint Venture in India
One of the most famous forms of business partnerships is the Joint Venture (‘JV’), where two or three companies work together and combine their money in order to conduct a particular mission. There are different types of JV, such as introducing an entirely new organization or simply entering into a binding arrangement; in order to serve a geopolitical objective, it could be for a long term or a short period.
Registration procedure
The broad steps involved in the establishment of a joint venture company in India are listed as follows:
Step 1
Find a Joint Venture Company partner from India
Step 2
A Venture Agreement specifying the Parties' rights and obligations establishes a Joint Joint Agreement
Step 3
A Venture Agreement specifying the Parties' rights and obligations establishes a Joint Joint Agreement
After completion of all steps listed above, next steps is Joint Venture Registration.
Forms of Equity Based JV
The chosen form for joint venture companies in India is a limited liability corporation. The government also promotes investment in a business incorporated in India as equity funding. In India, corporations are primarily of two categories, private limited and public limited. To sum up, one may claim that a limited liability company and a limited liability partnership (LLP) company are the most appropriate and comfortable type of equity based joint venture in India.
JV registration conditions
International Corporation would have to become a partner of new Indian company in order to be registered as a joint venture company and then such a joint venture company will be known as an Indian domestic company. There is no separate legislation for registration as a joint venture in India, although RBI or government permission must be approved.
Get started
Contact us and our representatives will help to register Joint Venture in India.
Timeline
Business forming for all directors or partners may take around 1 week after the DINs have been received. The phase will take up to 4 weeks occasionally.
Fees
Incorporation cost for Joint Venture Company is Rs.25,000 or more, between Rs.10,000- Rs.20,000 for LLP Firm and no incorporation cost for Contractual Joint Venture.
Compulsory regulation
Before getting a Shareholders’ Agreement (SHA) (often referred to as India’s Joint Venture Agreement) or an LLP Partnership Deed (PD), you need to know that the SHA/PD is not a government or court document. SHA/PD is a working paper that can be published with an emphasis on market basics.
Documents
In general, the documentation needed to construct a JV can be divided into three categories:
- Undertaking Memorandum (MoU) or Letter of Intent (LoI)
- Conclusive Accords (depending upon the chosen structure)
- Other arrangements (such as swap agreements with technology/BTA, etc.)
Management of JV companies
It is necessary for the proposed management arrangement to have the same opinion and to categorize which group must assemble early in the joint venture procedure.
When drafting the memorandum of understanding, the management constitution, power, and protections should be agreed upon (MoU).
The Ccompanies Act, 2013 tequires all corporations to have Memorandum of Association (MoA) and Articles of Association (AoA) which act as the company’s charter papers.
International investors should remember that the JV agreement between the partners in India is not binding on the JV company until the terms are included in the JV company’s AoA.
Consultation about Joint Venture registration
We offer consultation services for Joint Venture registration that assist you in every phase of setting up your business in India. Our experienced advisors manage everything from preparing initial documents to securing essential permits and registrations, ensuring a seamless and effective experience. We deliver tailored advice on legal obligations, share capital, and corporate structure to support you in making well-informed choices that align with your business objectives.
Ownership management
Overseeing the ownership of a Joint Venture is a complicated yet essential responsibility. Our offerings encompass managing changes in ownership, overseeing beneficial owners, and facilitating ownership transfers. We guarantee that all changes in ownership are accurately recorded and adhere to the most current regulations.
Corporate structure changes
As your business changes, your corporate structure may also need to adapt. If you require modifications in directors, updates to nominee details, or other structural changes, we offer a wide range of services to ensure these transitions are handled seamlessly and effectively.
Share capital management
Managing share capital is crucial for the financial well-being of your company. We provide services to assist you in increasing, decreasing, selling, and transferring share capital, ensuring that all transactions are executed correctly and comply with legal regulations.
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