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Are JV companies eligible for government schemes?

Eligibility Depends on Legal Structure and Compliance

  • A JV company registered under the Companies Act, 2013 or LLP Act, 2008 is treated as a separate legal entity and can independently apply for government schemes.
  • The JV must be duly registered, GST compliant, tax registered, and possess a valid PAN, bank account, and statutory licenses.
  • It must meet the criteria of turnover, investment, sector classification, or registration under special schemes (like MSME or Startup India).
  • The eligibility is not automatically restricted just because it is a joint venture, unless a scheme specifically excludes such entities.

Participation in MSME and Startup Schemes

  • If the JV meets the definition of a Micro, Small, or Medium Enterprise (MSME) based on investment and turnover limits, it can register on the Udyam portal.
  • Once registered, it can avail benefits such as priority lending, interest subsidies, reimbursement grants, and tender relaxations.
  • JVs that qualify as startups under the DPIIT norms can register under the Startup India scheme, provided they meet innovation and age criteria.
  • Benefits include tax exemption, funding support, fast-tracked IP registration, and easier public procurement access.

Access to Sector-Specific Incentive Schemes

  • JVs operating in targeted sectors like manufacturing, electronics, IT, pharmaceuticals, and renewable energy can access Production Linked Incentive (PLI) schemes.
  • These schemes offer cash incentives, capital subsidies, and tax rebates for eligible companies over defined timelines.
  • Eligibility depends on project location, investment thresholds, output targets, and sometimes foreign investment compliance.
  • Government schemes under Make in India, Digital India, and Atmanirbhar Bharat are open to JVs meeting the scheme’s technical and financial benchmarks.

Public Procurement and Infrastructure Participation

  • JV companies are eligible to bid under government tenders and infrastructure projects, especially in railways, roads, defence, and energy.
  • Many tenders explicitly allow or require joint ventures to meet technical and financial qualifications jointly.
  • Schemes under PM Gati Shakti, Smart Cities Mission, AMRUT, and others allow JV participation subject to consortium and bid guidelines.
  • JVs must provide legal proof of partnership, MoU or agreement copy, and financial credentials while applying.

Compliance and Documentation Requirements

  • To access schemes, JVs must maintain regular filings of income tax, GST, MCA annual returns, and audit reports.
  • They must not be blacklisted, under litigation, or in default with any government agency.
  • Applications must be accompanied by certified financials, project reports, registration proofs, and declarations as required.
  • In case of foreign shareholding, the JV must comply with FDI policy and relevant sectoral guidelines.
  • Regular updates and verifications may be conducted by the implementing authorities to ensure continuous eligibility.

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