Identifying Indian Partners

• Foreign companies seek Indian firms with local expertise
  
• Selection is based on industry knowledge and market presence
  
• Due diligence is conducted on potential Indian partners
  
• Compatibility in goals, ethics, and financial stability is evaluated
  
• Negotiations are held to align business interests and strategies
  

Structuring the Joint Venture

• Choose between equity-based or contractual joint venture
  
• Define ownership structure and capital contribution
  
• Decide on roles, responsibilities, and governance terms
  
• Prepare a detailed joint venture agreement
  
• Decide on the legal entity type and registration process
  

Regulatory Approvals and Compliance

• Check if the sector falls under the automatic or approval FDI route
  
• Submit a proposal to DPIIT and obtain the necessary clearances
  
• Comply with FEMA regulations and RBI norms
  
• Obtain approvals from other sectoral regulators if needed
  
• Ensure adherence to sectoral caps and guidelines
  

Legal Documentation and Formation

• Draft and sign the joint venture agreement
  
• Incorporate the joint venture company under the Companies Act
  
• File the necessary incorporation documents with the Registrar of Companies
  
• Appoint directors and issue shares as per agreed terms
  
• Open bank accounts and complete KYC procedures
  

Post-Formation Activities

• Start business operations as per the joint venture objectives.
  
• Ensure compliance with tax, labor, and industry laws.
  
• Monitor performance through regular board and partner meeting.s
  
• Maintain financial records and submit statutory filings
  
• Plan exit strategies and dispute resolution mechanisms.