Joint Venture

Joint Ventures are an association of two or more individuals or entities engaging in a specific business enterprise for profit. There is no statute in India that defines a Joint Venture. Section 8 of the Partnership Act, 1932 states that a person may become a partner with another person in particular adventures or undertakings. The Supreme Court of India, however, held that Joint Venture (JV) means a legal entity in the nature of a partnership engaged in the joint undertaking of a particular transaction for mutual profit or an association of persons or companies jointly undertaking some commercial enterprise wherein all contribute assets and share risks. From a legal and organizational point of view, joint ventures can be in two forms i.e. equity joint ventures and contractual joint ventures. In equity joint ventures, two or more partners participate to create a new corporate entity wherein each one of them owns a given share of the equity capital. However, such a thing is absent in contractual joint ventures wherein the only internal legal relations between the parties as well those the parties, on one hand, and third parties on the other are structured and regulated on a contractual basis.

Astrea provides comprehensive legal assistance with respect to the structuring and negotiation of equity and contractual joint ventures, and our attorneys have significant experience in the formation and documentation. The firm has broad industry expertise in the area of joint ventures and provides services in various aspects of it which includes:

• Formation and operation of national/ international joint ventures
• Contractual arrangements
• Finance
• Intellectual Property
• Antitrust
• Labour and Employment issues
• Environmental and various regulatory compliances
• Financial obligations and capital requirements
• Tax matter