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Joint Venture online in India with REGISTRATION MITRA

Starts from INR 19,999/- 14,499 only

Inclusions

  • Free advisory by experts
  • Memorandum of Understanding drafting
  • Contract Drafting
  • Execution of JV
  • Assistance in implementation of JV contract

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    Joint Venture In India

    Foreign companies can set up their operations in India by entering into strategic partnership with Indian entities and forming a Joint Venture (JV). It is important for the foreign company to elect a local partner with whom it wants to enter into a joint venture. The most common reasons for businesses to decide to enter into a joint venture include gaining access to new markets, increasing market power, and sharing resources. Unlike a partnership or merger, each of the businesses in a joint venture maintains its independent business identity and simply agrees to work together in a limited and specific way to achieve a common business goal.

    A Memorandum of Understanding or a Letter of Intent is to be signed which will state the basis for the joint venture agreement. A thorough discussion of all the terms should be done and they must be consistent with regional as well as international law. Terms and conditions should be properly assessed before signing the contract. Negotiations need an understanding of the cultural and legal background of all the involved parties. The JV union should obtain all the required governmental approvals and licenses within a specified period. Approval from RBI or FIPB as applicable is required to enter into JV agreement.

    Types of joint ventures in India

    Equity joint venture:

    In equity joint venture an independent legal entity is created in accordance with the agreement of two or more parties. The associated parties undertake to provide money or other resources as their contribution to the capital or assets of the corporate entity. This structure is ideal for long-term, broad-based joint ventures, and include joint venture companies and joint venture limited liability partnerships (LLPs).

    Contractual joint venture:

    This type of joint venture might be used where the organization of a detached legal entity is not needed or the creation of such a separate legal entity is not feasible. This type of agreement is preferred in situations that involve a temporary task or a limited activity, or the JV needs to be established for a limited term.

    Choosing a business structure for your JV in India

    • Incorporated
      • Company; or,
      • Limited Liability Partnership.

      In the case of a capital-intensive project, the incorporated joint venture structure is usually preferred over the unincorporated joint venture structure owing to its ability to source huge amounts of capital resources by means of equity, debt or other avenues of financing.

    • Unincorporated
      • Partnership; or
      • Cooperation agreement/strategic alliances.

      Unincorporated joint ventures permit partners to enter into strategic alliances without the formality of a corporate vehicle.

    Advantages of Joint Venture in India

    • Access to the established distribution and marketing channels of the Indian partner;
    • Access to the available financial resources of the Indian partners; and,
    • Access to the established contacts of the Indian partners, which will help ease the process of setting up operations in India.
    • A JV also offers the associated parties an opportunity to jointly manage the risks associated with new ventures. Through a JV, they can limit their individual exposure by sharing the liabilities.
    • Flexible business diversification
    • Market access

    Formation Procedure

    • Step 1
      Identify the best partner:
      • The first step is to identify and select the best partner after proper due diligence is the most significant of all.
    • Step 2
      Memorandum of Understanding:
      • Once a partner is identified, a memorandum of understanding (“MoU”) or a letter of intent (“LoI”) is executed and signed by the parties expressing the intention to enter into definitive agreements.
    • Step 3
      Joint Venture agreement:
      • The final step is to draft and execute JV and other agreements depending upon the nature of the JV structure.

    Register For A Setting Up Joint Venture In India With Registration Mitra

    We at Registration Mitra can help you in setting up a JV in India. Our dedicated team will help you with the entire process from RBI Approval to registration under Companies Act to post registration Compliances. Anyone looking for Joint Venture in India can contact Registration Mitra for a quick and reliable solution.

    How Registration Mitra helps in this Entire Process

    Proper Advice and research

    Our experts will advice you throughout the process for registration

    Drafting of documents and application

    We will draft the required supporting documents and agreements.

    Other registrations

    After setting Joint Venture, we will apply for other registrations as required.