No Statutory Minimum Capital Requirement India does not prescribe a minimum capital for joint ventures Especially for private limited companies under the Companies Act Capital can be decided mutually by the joint venture partners Must be sufficient to meet the...
Selection of Indian and Foreign Partners Identify compatible Indian and foreign entities for collaboration Conduct background checks and mutual evaluations Align on business goals, investment, and operational strategy Finalize roles, responsibilities, and shareholding...
Based on Equity Contribution Profits are shared in proportion to capital invested Higher equity holders receive a larger share of profits Equity ratio is defined in the joint venture agreement Reflects the financial risk taken by each partner Commonly incorporated...
Financial Due Diligence Review the financial statements of the prospective partner Assess cash flow, assets, liabilities, and credit history Evaluate the profitability and sustainability of the business Verify tax filings, audits, and outstanding dues Identify...
Objective and Scope Clearly defines the purpose of the joint venture Specifies the industry, project, or business activity Outlines geographic area and duration of operation Details the scope of work and deliverables expected Aligns mutual goals of the partnering...
Definition and Concept An unincorporated joint venture does not form a new legal entity It is based solely on a contractual agreement between parties The parties collaborate to achieve a specific business goal It operates under mutual understanding without separate...
Meaning and Concept An incorporated joint venture involves creating a separate legal entity It is typically formed as a private or public limited company The joint venture has its name, PAN, and registration It is distinct from the parent entities legally and...
Identifying Indian Partners Foreign companies seek Indian firms with local expertise Selection is based on industry knowledge and market presence Due diligence is conducted on potential Indian partners Compatibility in goals, ethics, and financial stability is...
Companies Act, 2013 Governs incorporated joint ventures formed as companies. Defines structure, governance, and compliance requirements. Mandates board meetings, filings, and statutory audits. Regulates directors' responsibilities and shareholders' rights. Ensures...
Equity-Based Joint Ventures Involves the creation of a separate legal entity. Partners invest capital and receive ownership shares. Profits and losses are shared based on shareholding. Common in both domestic and international collaborations. Operates under company...