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business
Asked a question 2 years ago

Ways to form a joint venture company

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(i) Two parties (individuals or companies), incorporate a company in India. Business of one party is transferred to a new company. For consideration of such transfer, shares are issued by the new company and subscribed by the above party. The other subscribes for the shares in cash; 

(ii) The  above two parties subscribe to the shares of the joint venture company in agreed proportion, in cash and start a new business; 

(iii) Promoter shareholder of an existing Indian company and another party which may be either an individual or a company may collaborate to jointly carry on the business of that company. The other party may be non-resident or resident and may take up shares of the company through payment in cash.All  joint  ventures in India require government approvals if a foreign partner or a Non-Resident Indian (NRI) is involved. The approval can be obtained either from the Reserve Bank of India  or Foreign  Investment Promotion Board (FIPB), depending upon particular circumstances.