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A joint venture is a business existence made by two or more parties. Generally, one of the party is a governance and other party is the ownership. The venture is shared by these two parties.
Why do people get into joint venture?
To gain access to new emerging markets, to share the risks for big investments or to have access to more skills.
Basic elements of joint venture, that you need to know for Joint Ventures in India assignment help:
Joint Ventures in India:
Firstly, India does not have any specific laws or rules and regulation for joint ventures. Generally, the corporate companies are part of this kind of ventures and when they are into this, they are treated with the same regulations as domestic companies.
Private companies with no upper limit of investment but minimum of $2500 can invest in India. Investment from one person as a single proprietorship is also ok to do in India. But this right only is reserved for NRIs or Non-residential Indians but not for foreign individuals.
Foreign companies can do their transactions in a joint venture without any special permission from RBI or Reserve Bank of India but they can only own 10 percent equity. While if a collection of foreign companies are doing the investment then the limit is up to 24 percent.
As a part of the joint venture, it is assumed in India that the foreign partner will take care of the technical part including the foreign exchanges. At the same time, the Indian partner will take care the factory setting and will supply all the machineries. Many joint ventures in India are formed as public limited companies (LLCs).
Hence, these are basic element that one needs to know for joint venture. If you are still confused, then come to us for Joint Ventures in India assignment help.
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