Applicability of Environmental Laws All joint ventures involved in infrastructure, manufacturing, energy, mining, and similar sectors must comply with environmental laws in India. Key legislations include the Environment (Protection) Act, 1986, the Air (Prevention and...
Preliminary Assessment Begin by identifying and shortlisting potential JV partners based on business needs. Assess strategic fit, market presence, technological capabilities, and reputation. Conduct background research through public records, websites, and third-party...
Eligibility Under Startup India The JV must be registered as a private limited company, partnership firm, or LLP. It must have been incorporated in India within the last 10 years. The turnover must not have exceeded ₹100 crore in any previous financial year. The...
Contractual Definition of Control In a joint venture, control is primarily defined through the JV agreement. It outlines decision-making powers, voting rights, and operational authority. Control may be joint (shared equally) or dominant (one party has overriding...
Regulatory Framework Under the Competition Act, 2002 The Competition Act, 2002, governs anti-competitive practices, abuse of dominance, and combinations (mergers and acquisitions) in India. Joint ventures that qualify as “combinations” are subject to review by the...
Object Clause in Incorporation Documents The Memorandum of Association (MoA) must include all intended business activities. The MoA’s “object clause” should be drafted broadly to cover multiple sectors or activities. If a new business activity is not listed, the MoA...
Nationwide Legal Framework Joint ventures in India are governed by central laws such as the Indian Contract Act, Companies Act, FEMA, and relevant taxation laws. These laws apply uniformly across all Indian states. Any individual or business entity can enter into a JV...
Contractual Basis of Joint Ventures Joint ventures in India are primarily governed by the Indian Contract Act, 1872. The JV agreement acts as a binding contract between the parties. The agreement outlines the rights, duties, and obligations of each partner. It must...
Legal Eligibility of Government Companies Government companies are legally allowed to enter into joint ventures. They may form JVs with private entities, foreign investors, or other public sector undertakings. The decision must align with the objectives stated in the...
Multi-Party Participation A joint venture can include three or more entities as co-venturers. Each party brings specific resources, expertise, or capital to the venture. All participants jointly contribute and share profits, losses, and control. The JV agreement...