A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and of course, profits. Joint Venture companies are one of the most preferred form of corporate entities for Doing Business in India. There are no separate laws for joint ventures in India. Foreign companies are free to open branch offices in India, however joint venture company attracts less tax than branch office.
Benefits
A successful joint venture can offer:
- access to new markets and distribution networks
- increased capacity
- sharing of risks and costs with a partner
- access to greater resources, that is, Specialized staff, technology and finance
Entering in to a Joint Venture Agreement:
Selection of a good local partner is the key to the success of any joint venture. Once a partner's selection is complete generally a Memorandum of Understanding or a Letter of Intent is signed by the parties highlighting the basis of the future joint venture agreement.
Drafting a Joint Venture Agreement:
When you decide to create a joint venture, you should set out the terms and conditions in a written agreement. This will help prevention of any misunderstandings once the joint venture is up and running. A written agreement should cover structure, objectives, financial contributions, intellectual property, management and control, disputes, profits sharing etc.
Setting up a Joint Venture in India:
India is witnessing a revolution in the context of liberalization as well as in globalization of the Indian economy and transacting business through Joint ventures set up with foreign partners across various industry sectors. To start a new joint venture in India a joint venture company has to be formed. In case one of the partners of the joint venture company is a non resident, approval of Reserve bank of India {RBI} will be required for acquiring shares of the company. The Joint Venture agreement must be conditional upon obtaining all necessary approvals/ consents/ licenses /permissions of appropriate agencies of Government of India like RBI/SIA etc within specified period.
Business Query Form
Following are the name of some companies which are engaged in joint venture agreement, Some of them are government's companies.
- Government Companies:
- Advanced Level Telecommunication Training Centre (ALTTC)
- Delhi Metro Rail Corporation
- Electronics Corporation of India Limited(ECIL)
- National Centre for Trade Information (NCTI)
- Pipavav Railway Corporation Ltd. (PRCL)
- Rehabilitation Plantations Ltd., Punalur (RPL)
- Satluj Jal Vidyut Nigam Ltd.
- Tehri Hydro Development Corporation Ltd.(THDC)
- Public Companies:
- Tata Steel and BlueScope
- Parker Hubei Seal Corporation
- Beijing Jeep Corporation, Ltd.
- UTEX International Corp. of Shanghai
- Xerox of Shanghai Limited
- Tianjin Unison Enterprise, Inc.
- Astro-UniHorn Computer Technology Co., Ltd.
- Pan Abrasives (Shanghai) Limited
- Shanghai T&C Ophthalmic Products Co., Ltd.
- Beijing Warner Gear Company, Ltd.
- Weihai Huabao Carpet Co., Ltd.
- Shenzhen Chess Computer Company, Ltd.
- Shanghai Unison Aluminum Products Ltd.
- Shanghai Unison Building System Products Co., Ltd.
- Sanjiang Renault Automotive Co., Ltd.
- Communication Intelligence Computer Corp., Ltd.
- Nantong UniStar Electro-Mechanical Industries., Ltd.
- Guangzhou Huamei Communications Ltd.
- Shanghai Unison ElectroDynamics, Ltd.
- Shanghai Automotive Brake Systems Co., Ltd.
- Chengde North Unison Instruments Co., Ltd.
- UTA-DCAC Auto Electric Co., Ltd.
- UTA-Xianfeng Auto Electric Co., Ltd.
- Shanghai Unison International Consulting Co., Ltd.
- Beijing Monroe Automotive Shock Absorber Co., Ltd.
- Huazhong Warner Transmission Co., Ltd.
- PDS Edison Power Systems Co., Ltd.
- Wuxi Unison Electric Co., Ltd.
- ITT Shanghai Automotive Electric Systems Co., Ltd.
- XJ-Matco Electronics Co., Ltd.
- Beijing Conductor Line Products Co., Ltd.
- Lanzhou Lubrizol Lanlian Additive Co., Ltd.
- Tianjin Lubrizol Lanlian Additive Co., Ltd.
- Shunde Donnelly Zhen Hua Automotive Trim Co., Ltd.
- Beijing Johnson Controls Automotive Trim Co., Ltd.
- Shanghai Eaton Engine Components Co., Ltd.
- Shanghai Hyster Forklift Truck Co., Ltd
- Dong Ying Unison Petroleum Equipment Co., Ltd.
- Beijing Unitrade E-Commerce Co., Ltd.
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