Meaning and Concept

• An incorporated joint venture involves creating a separate legal entity
  
• It is typically formed as a private or public limited company
  
• The joint venture has its name, PAN, and registration
  
• It is distinct from the parent entities legally and financially
  
• All operations are conducted in the name of the new entity
  

Ownership and Equity Structure

• Partners hold equity shares in the incorporated company
  
• Shareholding may be equal or based on mutual agreement
  
• Profit and loss are shared according to the shareholding ratio
  
• Equity capital is contributed by all participating partners
  
• Shares are issued to formalize ownership
  

Governance and Management

• Governed by the Companies Act, 2013 and its provisions
  
• A board of directors is appointed by the shareholders
  
• Management decisions are taken by the board or committees
  
• Company must follow corporate governance norms
  
• Periodic meetings and reporting are mandatory
  

Legal Identity and Liability

• The joint venture company has a separate legal identity
  
• It can own assets, enter contracts, and sue or be sued
  
• Partners’ liability is limited to their capital contribution
  
• It reduces individual risk exposure for the shareholders
  
• Legal obligations lie with the incorporated entity
  

Compliance and Reporting

• Must be registered with the Registrar of Companies
  
• Needs to file annual returns and financial statements
  
• Subject to audits, taxation, and regulatory disclosures
  
• Complies with income tax, GST, and labor laws
  
• Ensures legal and financial transparency through regular filings