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Formation of joint venture

CA Ankita goel (Manager) (28 Points)

22 June 2013

Can two private companies form a joint venture for providing services?

If yes, need joint venture agreement and procedure of forming joint venture..

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3 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 22 June 2013

Yes, it is possible. You have to enter into a Joint Venture Agreement and incorporate the provisions of the agreement in the Articles also. You have to engage some practising professional for drafting the JV agreement since it is extensive exercise and legal due diligence has to be carried out for the same.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7689 Points)
Replied 24 June 2013

Originally posted by : CA Ankita goel
	Can two private companies form a joint venture for providing services? If yes, need joint venture agreement and procedure of forming joint venture..

The broad steps involved in setting up a joint venture company in India are outlined as under:

	Locate an Indian partner

	Venture Agreement setting out the rights and responsibilities of the Parties Form a Joint

	In case the Joint Venture Company is a new company, incorporate a new company (public or private) and invest in agreed ratio. However, in case the investment is being made in an existing company by acquisition of shares by the foreign company, complete the share acquisition procedure.
	Commence Joint Venture Business