by Audit Analyst | Dec 14, 2025 | Joint Venture
Initial Reporting at the Time of Investment When a foreign investor subscribes to shares in a JV, the Indian JV company must report the receipt of foreign funds to the Reserve Bank of India (RBI) through an Authorized Dealer (AD) Bank. This is done using the Advance...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Legal Capacity to Hold Shares A JV company registered under the Companies Act, 2013 is considered a separate legal person and can hold shares in other companies. The power to invest must be authorized by the Memorandum of Association (MoA) under the objects clause. If...
by Audit Analyst | Dec 14, 2025 | Joint Venture
GST Registration Requirement A JV company engaged in the supply of goods or services must obtain GST registration if its aggregate turnover exceeds the prescribed threshold. Each branch office in a different state may require a separate GST registration. The...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Eligibility to Establish Branch Offices A JV company that is duly registered under the Companies Act, 2013 or as an LLP under the LLP Act, 2008 is legally permitted to open branch offices across India. These branches are extensions of the registered office and can...
by Audit Analyst | Dec 14, 2025 | Joint Venture
Legal Eligibility to Issue Preference Shares Only JV companies incorporated as companies under the Companies Act can issue preference shares. Preference shares cannot be issued by JVs formed as LLPs, partnerships, or unincorporated entities. The issue of preference...
