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 business objectives and expenses
  
• Flexibility allows both small and large ventures to operate
  

Sector-Specific Requirements

• Certain sectors may have capital thresholds under the FDI policy
  
• Regulated industries like banking, insurance, and telecom apply limits
  
• Minimum capital norms are imposed by sectoral regulators
  
• These requirements override general company law flexibility
  
• Partners must verify capital norms before incorporation
  

Contractual Agreement Between Partners

• Capital contribution is mutually agreed upon in the JV agreement
  
• Can be monetary or in the form of assets, technology, or services
  
• Reflects ownership and profit-sharing ratios
  
• Can include initial capital and future funding commitments
  
• It should be clearly stated to avoid disputes
  

Types of Capital Contributions

• Equity capital is commonly contributed as shares
  
• Preference shares or debentures may also be used
  
• Contributions can include tangible and intangible assets
  
• May involve transfer of licenses, IPR, or infrastructure
  
• All contributions must be valued and recorded accurately
  

Regulatory and Practical Considerations

• Must ensure compliance with FEMA if foreign capital is involved
  
• Adequate capital helps meet working capital and operational needs
  
• Proper capital planning is essential for sustainable growth
  
• Registrar of Companies requires disclosure of the capital structure
  
• Investors and lenders often assess JV strength by capital base