This unique text gives you the guide, knowledge and expertise to ensure that you have the advantage of each joint venture transaction by allowing you: – the joint venture can be classified either as an incorporated or unincorporated based on its constitution. In the case of a registered joint venture, a new entity may be a company or a limited liability company? Incorporated enterprises are separated and enterprises occupy equity in the newly created entity, in accordance with the agreement. While the joint venture is not of legal origin, it may include the creation of an unregistered company as a partnership or simply agreements for specific purposes. Joint ventures and shareholder agreements focus on private joint ventures created by two or more companies. There are no separate laws for joint ventures, but the agreement that governs a joint venture must comply with Indian legal principles and guidelines. A joint venture agreement defines the conditions, rights and obligations/obligations of each part of the company. The agreement could also describe what the company is at stake and how long it will take. In addition, further authorisations are required, depending on the industry in which the joint venture wishes to enter. It provides a general one-person guide on topics relevant to structuring and negotiating agreements between two or more shareholders of any type of private company, whether they are companies, individuals, institutional investors or a combination of these. While the focus is on corporate vehicles, some aspects of non-corporate joint ventures are also taken into account, with a comparison between different types of companies. In addition to the prohibited sectors, investments in India would generally fall into two categories, the “automatic route” or the “authorization route”.1. The automatic route is for an investment that does not require prior government approval (and only requires certain submissions from the Reserve Bank of India, the central regulatory bank). The automatic route is available for a number of sectors and applies when the level of foreign investment does not exceed the indicated percentage (if less than 100 per cent is allowed) and the foreign investor does not have a prior or retention business in the same sector in India.
For more information, see: blog.wazzeer.com/joint-venture-agreement-rule-book-every-investor/#sthash.bU8FhSAM.dpuf joint ventures and shareholder agreements have been specifically designed as working guides and take a procedural approach that takes into account all related legal issues and documentation. The book offers practical tips, highlights important business considerations, and offers time-saving diagrams and checklists. A joint venture is a strategic alliance between two or more people or companies to participate in a given project or company. Partnerships and joint ventures may be similar, but, in fact, they may have significantly different effects for the parties involved. A partnership typically involves an ongoing, long-term business relationship, while a joint venture is based on a single business project. The parties engage in joint ventures in order to obtain individual benefits, usually part of the project objective. This can be to develop a product or intellectual property rather than common or collective benefits, as is the case for a general or limited partnership. A joint venture, such as a trading company, is not a separate legal person. Revenues, charges and ownership of assets are generally paid to the participants through the joint venture, as the joint venture itself has no legal status. Once the joint venture has achieved its objectives, the company will cease to exist. ESSENTIAL TO KEEP IN MIND WHEN ESTABLISHING YOUR JOINT VENTURE CONTRACT: an appropriate authorisation is required on the basis of the investment route.
Currently, only the nuclear power, gambling, lotteries and retail sectors are prohibited from obtaining foreign investment….