Joint Venture Company / LLP
A joint venture is generally understood as technical and financial collaboration either in the form of greenfield projects, take-overs or alliances with existing companies.
In India, no legal definition as such has been given to joint ventures. However, the Government of India and its agencies prescribe certain guidelines, which distinguish joint ventures from other entities. Indian joint ventures usually comprise two or more individuals/companies, one of whom may be non-resident, who come together to form an Indian private/public limited company, holding agreed portions of its share capital. A joint venture agreement primarily provides for the manner in which the shareholders of the joint venture company may transfer or dispose of their shares. It is also commonly referred to as a shareholders’ agreement.
India has inherited the English common law system. Under this system, unlike the civil law system, contracts are detailed. Shareholders’ agreements and the articles of association (bylaws) of the joint venture company form the basis of the joint venture India. The shareholders agreement prescribes share transfer restrictions, if any, which are then incorporated into the articles of association of the joint venture company.
In India, joint ventures can exist in the form of companies, partnerships or joint working agreements. The various companies that may be incorporated in India are as follows:
1. Companies limited by shares.
2. Companies limited by guarantee.
3. Companies having unlimited liability.
For a foreign Investor in India it is very important to choose a right kind of business or corporate entity which best suits its purposes and takes care of liability issues and tax planning issues. Foreign Companies planning to do business in India should pay special attention to Entry Strategies in India for Foreign Investors and corporate structuring to save taxes to the best extent allowed by laws and international tax treaties.
Hence, we provide our foreign clients with proper guidance to set-up a Wholly Owned Subsidiary Company in India by following all the required norms being Set up by The Indian Government.
Clients seeking to avail our services may fill the query form and mail us at email@example.com