Lack of Clear Objectives Partners may not agree on the purpose and goals of the venture. Misaligned visions lead to confusion and conflicting strategies. Unclear performance metrics can cause disputes over progress. Failure to define success criteria causes...
Governing Law and Jurisdiction Specifies which country’s or state’s laws will govern the agreement. Reduces ambiguity by clearly stating the legal system to be applied. Helps in interpreting the provisions of the agreement consistently. Prevents conflict over...
Ownership Structure and Allocation The joint venture agreement defines IP ownership clearly IP can be jointly owned or retained individually by partners Newly created IP during the JV may be assigned to the JV or shared Each party’s pre-existing IP is typically...
Buyout by One Partner One partner purchases the shares or interest of the other Triggered by predefined conditions or mutual agreement Valuation methods are agreed upon in the JV agreement Enables continuity under a single owner Often used when goals or strategies...
GST Registration Requirement Joint ventures must obtain GST registration if their turnover exceeds the threshold Applicable even if the JV is formed for a specific project or contract Each distinct JV entity requires separate registration Partners may also need...
Taxation Based on Legal Structure Incorporated joint ventures are taxed as separate legal entities They pay corporate income tax on their total profits Tax rates depend on turnover and the nature of a company (domestic or foreign) Unincorporated joint ventures are...
If Incorporated as a Company An incorporated joint venture has a separate legal identity It can buy, sell, lease, or mortgage property in its own name Title deeds are registered in the name of the joint venture company The company can hold movable and immovable assets...
Defines Ownership Structure Shareholding pattern indicates the ownership stakes of each partner Reflects the proportion of control in the joint venture entity Determines voting power and influence in decision-making Guides profit-sharing and dividend entitlement...
Identify the Purpose and Scope Clearly define the objective of the joint venture Specify the products, services, or projects involved Mention geographic coverage and market segments Set measurable business goals and timelines Establish the overall strategic vision...
Registrar of Companies (RoC) Approval Approval is needed for incorporating the joint venture company File incorporation forms with the Ministry of Corporate Affairs Submit Memorandum and Articles of Association Receive Certificate of Incorporation and Corporate...