A Joint Venture Agreement is an arrangement where two companies develop a new entity to their mutual benefit. It normally involves a sharing of resources, which could include capital, personnel, physical equipment, facilities or intellectual property such as patents. The motive behind forming a joint venture comprise business expansion, development of new products or moving into new markets, mainly overseas.
Since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are controlled through the co-venturers directly and are governed by contract law.
Contractual joint venture: It includes
Equity based joint venture: It Includes Company, Partnership Firm, LLP, Venture Capital Fund, Trusts, and Other Entities.
Foreign companies are prohibited to enter into joint ventures in the following areas:
It takes approximately 3 to 4 working days to deliver the joint venture agreement and if any modification required later on then a day or two working days more for such modification.
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