Build a joint venture that works for both partners. Our joint venture advisory covers the full JV lifecycle: finding and evaluating the right partner, negotiating and structuring the deal, drafting the JV agreement, obtaining regulatory approvals, and setting up and running a compliant JV entity in India.
A joint venture (JV) is formed when two or more partners join hands for a common business objective, usually by setting up a new company in which each partner holds a share.
The most common form. The partners set up a new private or public limited company and hold shares in agreed proportions. Their rights and obligations are set out in a JV or shareholders' agreement, reflected in the Articles of Association.
Typically formed as a consortium to execute a specific project, where the partners do not want to incorporate a company. These need careful tax review, because a consortium may be treated as an Association of Persons for tax purposes.
Not sure whether a JV or a wholly owned subsidiary is right for you? See the comparison below.
Our team of Chartered Accountants, Company Secretaries, MBAs and legal professionals supports clients through every stage of setting up a joint venture in India.
We identify and shortlist suitable Indian partners, supported by market assessment where needed.
We carry out financial, tax and compliance due diligence on the prospective partner.
We support negotiations on shareholding, control, contributions and commercial terms with the prospective JV partner.
We structure the foreign investor's investment in the JV for tax efficiency, FEMA compliance and future exit.
We draft and negotiate the JV and shareholders' agreement, and align the Articles of Association with it.
We obtain FDI, sectoral and other regulatory approvals required for the joint venture.
We close the deal and set up the JV entity, through incorporation, capital infusion and share allotment.
We handle all FEMA, company law and tax compliance needed to complete the set-up and run the JV.
Indian companies forming JVs overseas can use our outbound expansion support.
Most JV disputes come from issues that were not clearly agreed at the start. We make sure the agreement covers:
| Area | What we review |
|---|---|
| FDI policy | Sector caps, automatic vs government route, and Press Note 3 (2020) for investors from countries that share a land border with India |
| Pricing & valuation | FEMA pricing guidelines for share issues and transfers, with a supporting valuation |
| RBI reporting | Form FC-GPR for share allotments, FC-TRS for transfers, and the annual FLA return |
| Competition law | Whether the transaction needs approval from the Competition Commission of India |
| Company law | Incorporation, Articles aligned with the JV agreement, board and shareholder approvals |
| Tax | Tax-efficient structure, treaty benefits, transfer pricing on transactions with partners, royalty and technical fee withholding, and exit taxation |
| Joint Venture | Wholly Owned Subsidiary | |
|---|---|---|
| Control | Shared with the partner, by agreement | Full control by the parent |
| Market access | Immediate, through the partner's network | Built from scratch |
| Capital & risk | Shared | Borne fully by the parent |
| Restricted sectors | Allows entry where foreign ownership is capped | Only where 100% FDI is permitted |
| Main risk | Partner misalignment and deadlock | Slower ramp-up in a new market |
Tell us about your business and what you want from a partner. We will outline the right structure, approvals and next steps, at no cost and with no obligation.
Book a Free JV ConsultationShare a few details about your JV plans. All information is kept confidential.
