Capital Gains on Transfer of JV Interest When a JV partner exits by selling shares or interest in the JV entity, the gains from such sale are treated as capital gains under the Income Tax Act, 1961. The gain is calculated as the difference between the sale...
Applicability of Labour Laws to JV Companies JV companies, once incorporated as legal entities (such as private limited companies or LLPs), are considered employers under Indian labour laws. They are required to comply with central and state-level labour regulations,...
Definition of a Project-Specific Joint Venture A project-specific joint venture is a temporary business arrangement formed exclusively to execute a single, defined project. It is established by two or more parties who pool resources, expertise, and capital for the...
Understanding the Conversion Structure A subsidiary is a company in which another entity (the holding company) owns more than 50% of the total share capital or controls the composition of the board of directors. To convert a JV into a subsidiary, one partner (usually...
Audit Requirement for Incorporated JVs If the JV is formed as a private limited company or public limited company, it must conduct a statutory audit under the Companies Act, 2013. Audit is mandatory irrespective of turnover or profit, meaning all companies must...
Statutory Disclosures under the Companies Act, 2013 JV companies incorporated as private or public limited companies must comply with the Companies Act, 2013. They are required to maintain and file annual financial statements, Board’s Report, and Annual Return (Form...
Eligibility for VC Investment A JV company must be registered as a private limited company or LLP to be considered for VC funding. The company should operate in a high-growth or innovation-driven sector, such as technology, healthcare, clean energy, or consumer...
Pre-Incorporation Planning and Documentation This phase involves finalizing the JV agreement, selecting the legal structure (company, LLP, or partnership), and agreeing on the capital contribution, control rights, and business objectives. Partners decide on the...
Establishing Ownership and Rights Before enforcement, the JV must have clearly defined ownership of the IP in question. The IP (trademark, copyright, patent, or design) must be registered under the name of the JV entity or assigned to it by the contributing partner....
Eligibility for IP Registration A JV that is incorporated as a company, LLP, or registered partnership firm is considered a juristic person under Indian law. Such entities are eligible to own and register intellectual property rights, including trademarks and...