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A joint venture in India is a tactical business partnership where two or more people or companies agree to put in goods, services and/or capital to a uniform commercial industry project.A joint venture is a new startup owned by two or more participants.


How to Set Up A Joint Venture In India ?

A joint venture in India is a tactical business partnership where two or more people or companies agree to put in goods, services and/or capital to a uniform commercial industry project.A joint venture is a new startup owned by two or more participants. Though the joint venture represents a newly created business company startup, its participants continue to exist as separate entities. A joint venture in India can be organized as a partnership firm, a corporation or any other form of business organisation which the participating firms choose to select.


Fast, Easy & Hassle Free Setting Up A Joint Venture registration in India 

Setting up A Joint Venture Registration in India can be complex.

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In sectors where 100% FDI is not allowed in India, a joint venture is the best medium to start, offering a low risk option for companies wanting to enter into the vibrant Indian market. For any successful Joint Venture into India, compatibility is important for both the parties. To maintain a successful joint venture in India both of the associated parties should have a long term goal and vision & conditions should be written in the clauses in the Joint Venture.

Foreign Companies can set up their operations in India by forging strategic alliances with Indian companies.

Are you looking for a Joint Venture Registration Consultant in Jaipur, India? Process Now! Call @ 911-911-2929 / 91160-98980 .Save your time by registering on our website.

Types Of Joint Ventures

Company

  • Incorporated

  • Limited Liability Partnership (LLP)

Unincorporated

  • Partnership

  • Cooperation agreement/strategic alliances

The Typical Arrangement In A Joint Venture Company Is As Below

  • Two or more parties subscribe to the shares of the Joint Venture Company in agreed proportion, in cash, and start a new business.

  • Two parties, (individuals or companies), register a company in India. Business of one party is transferred to the venture company and as consideration for such transfer; shares are issued by the company and subscribed by that party. The other party subscribes for the shares in cash.

  • Promoter shareholder of an existing Indian company and a third party, who may be individual/company, one of them non-resident or both residents, collaborate to jointly carry on the business of that company and its shares are taken by the said third party through payment in cash.

The Advantages of joint ventures

  • Established distribution/ marketing channels set up of the Indian partner

  • Available financial resource of the Indian venture partners

  • Established contacts of the Indian partners which help smoothen the process of setting up of operations

  • Established contacts of the Indian venture partners which help smoothen the process of setting up operations.

  • A Joint Venture also offers parties an opportunity to jointly manage the risks associated with new ventures. Through a Joint Venture they can limit their individual exposure by sharing the liabilities.

  • Joint Ventures offer many flexible business diversification opportunities to the partners. A Joint Venture may be set up as a prelude to a full merger or only for part of the business.

  • Certain market sectors remain restricted for foreign investment and a local partner with a certain shareholding in the company is a regulatory necessity for commencing business and making investments.

Points must be properly assessed before Sign Joint Venture Contract

  • Shareholding pattern

  • Composition of board of directors

  • Dividend policy

  • Employment of funds in cash or kind

  • Restriction/prohibition on assignment

  • Indemnity

  • Management committee

  • Jurisdiction for resolution of dispute

  • Frequency of board meetings and its venue

  • General meeting and its venue

  • Change of control

  • Composition of quorum for important decision at board meeting

  • Transfer of shares

  • Non-compete parameters

  • Confidentiality

  • Break of deadlock

Termination criteria and notice