What is a Definition of Joint Venture-

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What is a Definition of Joint Venture- Powered By Docstoc
					?A typical Joint Venture is where:
1. Two parties, (individuals or companies), incorporate a company in India.
Business of one party is transferred to the company and as consideration for such
transfer, shares are issued by the company and subscribed by that party. The other
party subscribes for the shares in cash.
2. The above two parties subscribe to the shares of the joint venture company in
agreed proportion, in cash, and start a new business.
3. Promoter shareholder of an existing Indian company and a third party, who/which
may be individual/company, one of them non-resident or both residents for the help
collaborate to jointly carry on the business of that company and its shares are taken by
the said third party through payment in cash.
Some practical aspects of formation of international joint ventures and the
prerequisites which the parties should take into account are enumerated herein after.
Selection of a good local partner and a good consultant is the key to the success of
any joint venture.
Once a partner is selected generally a Memorandum of Understanding or a Letter of
Intent is signed by the parties highlighting the basis of the future joint venture

Types of Joint Venture Arrangements
Joint Venture arranges may range from independent joint ventures to forming a jointly
owned company and a range in between. It depends on the needs of a company to see
what kind of arrangement bests suits it. A Joint Venture consultant can walk you
through various options and help you set up optimal Joint Venture for your company
in a cost-effective manner.

Joint Venture Steps

We provide Joint Venture solutions through the following Process:
? Situation Analysis - Analyzing the company's requirements and identifying the
"outsourceable" components.
? Joint Venture Options & Planning - Analyzing various options ranging from
sub-contracting to co-opetiton and planning Joint Venture model which is most
appropriate in the circumstances.
? Contracts & Agreements - Drafting all the Joint Venture contracts.

How to Draft an Joint Venture Agreements?
A good Joint Venture agreement is one which provides a comprehensive road map of
the duties and obligations of both the parties.
It minimizes complications when a dispute arise. However, many a times people
neglect to pay attention while drafting an Joint Venture agreement.
Before finalizing an for the help . Joint Venture agreement, the terms should be
thoroughly discussed and negotiated to avoid any misunderstanding at a later stage.
Lawyers from all applicable jurisdictions must be consulted before finalizing any
Joint Venture agreement.
Every Joint Venture agreement should be modified as applicable under different
circumstances. One brush should not paint all the painting.

Some benefits, that make hiring a consultant a perfect business sense, are given
? They are objective to Customer Operations but out of their Corporate Power
? They have been there done that and can replicate it again for their customers and
just as the customers want it.
? They are clued in and can transfer skimmed information and best practices.
? If forming international joint venture, they can behave as a one-stop shop for
entire Project Management.
? Local knowledge is yet another key that they hold.

The roles of JV Consultants have changed the following being prominent:

1. Facilitative

2. Contributive

3. Consultative

4. Project Consultative

Selection of a consultant will vary depending upon what your objective is. if you are
looking at international joint venture, then you need someone who is capable of being
a facilitator who understands the business practices and legal knowledge of both the

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