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Registration Of Joint Venture Agreement In India

Choosing a good local partner is the key to the success of any joint venture. Personal interviews with a potential partner of the Joint Undertaking should be complemented by appropriate due diligence. Once a partner is selected, a Memorandum of Understanding or Memorandum of Understanding is usually signed by the parties, outlining the basis of the future joint venture agreement. A joint venture agreement requires skilful legal elaboration and should clearly contain the relevant clauses that define mutual understanding between the two parties in the establishment and operation of the joint venture. A brief checklist containing important clauses is as follows: 1. Share of the shareholding in the joint venture 2. Indicate the nature of the actions, indicate their portability conditions. 3. Composition of the Management Board, appointment of the Chairman, quorum of meetings of the Management Board, voting provisions. 4. Assembly of Members. 5. Appointment of the Director General/Director General.

6. Appointment of the Executive Board. 7. Important decisions taken by mutual agreement between the partners. 8. Dividend Policy. 9. Financial Benefits. 10. Terms of Access.

11. Modification of control/exit clauses. 12. Non-competition clauses 13. Protection of confidentiality 14. Indemnification clauses. 15. Assignment.

16. Breaking the deadlock. 17. Dispute Resolution. 18. Governing Law. 19. Force Majeure. 20. Termination Provisions.

India is undergoing a revolution both in the context of the liberalization and globalization of the Indian economy and in operations through joint ventures established with foreign partners in various industrial sectors. This article corrects some important steps towards the establishment of a joint venture in India. This type of agreement is preferred in situations where it is a temporary task or a limited activity, or where the joint venture is to be set up for a limited period of time. A joint venture also provides the associated parties with the opportunity to jointly manage the risks associated with new businesses. Thanks to a JV, they can limit their individual risk by sharing commitments. A joint venture is a business agreement in which the parties agree to develop a new entity and new assets by contributing equity. The parties exercise common control over the undertaking and, consequently, share the revenues, assets and expenses of the undertaking thus created. [C] The promoters of an existing Indian enterprise and a third party who may be a person/company, one of them having no territory or both residents, cooperate to jointly manage the activities of that company, and its shares are taken over by that third party by cash payment. Today, joint ventures are seen as a very elegant and practical means of diversifying products or business, expanding international markets and foreign direct investment abroad.

Companies in almost all sectors are now using this partnership for these purposes, taking into account the constant increase in competition at the national and international levels. Foreign companies in existing joint ventures can operate autonomously in the same industry. Previously, they needed prior permission from their Indian partners. Choosing the right home partner is the most important tool for a successful joint venture. In the event of the creation of a new joint venture in India, the following questions must be addressed: we are looking for a strategic investment by a co. technically sound, which is interested in investment and growth in India. We are a very successful infrastructure company in the field of airport modernization and has completed 32 airports according to international standards. We are interested in joint ventures or strategic investments or proposals for a full takeover.

The proposal is very attractive, as the company has an impeccable track record in its field….