Annual Financial Statements – Form AOC-4 Every JV company must file its audited financial statements with the MCA using Form AOC-4. This includes the balance sheet, profit and loss account, cash flow statement, and notes to accounts. The form must be filed within 30...
Legal Capacity of an NGO to Enter into a JV An NGO registered as a trust, society, or Section 8 company under Indian laws can enter into a JV, provided its charter documents permit commercial collaboration. The NGO must ensure that the JV's purpose aligns with its...
Approval Route vs. Automatic Route Foreign investments in JVs in India may be made through the automatic route (no prior approval) or the government route (with prior approval), depending on the sector. Under the automatic route, foreign investment is allowed up to...
Establishing Branches or Additional Places of Business JV companies can set up branch offices, project sites, regional hubs, or warehouses across different states or countries. Each location must be registered as an additional place of business with appropriate...
Understanding Permanent Establishment (PE) in JV Context A Permanent Establishment (PE) refers to a fixed place of business through which the business of a foreign entity is wholly or partly carried on in India. In a JV involving a foreign partner, the concern is...
Capital Contribution and Ownership Rights Shareholders in a JV are responsible for contributing capital in the form of cash, assets, or technology. Their ownership percentage in the company is determined by the number of shares they hold. Shareholders share in the...
Private Limited Company (Most Common JV Structure) A JV formed as a Private Limited Company under the Companies Act, 2013 can have a maximum of 200 shareholders. This limit includes both individual and corporate shareholders. It must have a minimum of 2 shareholders...
Formation Through Legal Entity Registration To form a JV in India, parties typically register a Private Limited Company, Public Limited Company, or LLP under Indian law. The entire registration process can be completed online through the Ministry of Corporate Affairs...
Incorporation and Initial Setup Costs Compliance costs begin at the incorporation stage, which includes: Registrar of Companies (RoC) filing fees, stamp duty, and PAN/TAN application charges. Digital Signature Certificates (DSC) and Director Identification Numbers...
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...