Joint Ventures & Foreign Collaboration

India is one of the fastest growing economies, and is considered as a bright spot on world economic map. Therefore, it is quite natural that economic growth of India attracts business and corporate houses from across the globe. Joint Venture is an admired system to enter into a country whose legal and business atmosphere is unfamiliar. However, business and corporate houses interested in joint ventures may face many obstacles which may be legal and/or even relationship centered as well, especially when even after more than two decades of liberalization, India imposes limitations on foreign investment in some sectors. Therefore, the objectives which the partners have in mind and whether they intend their association to be long term or short term or whether the foreign partner first intends to test or assess the Indian market determine the model chosen or structured for the joint venture. This is because of all these factors that in many situations a contractual joint venture is considered a better choice than equity based joint venture. Hence, it becomes more imperative for foreign companies to plan an appropriate corporate structure for joint ventures while choosing to work in India. Keeping in view the peculiar requirements and objectives of the foreign nationals and companies, the firm formulates appropriate strategies and advises on the options available for joint ventures in India. The services offered include:

  • Assisting corporate in finding the suitable joint venture partner in India.
  • Advising on entry strategies and route available for the tie-up like incorporated route, franchisee route etc in accordance with legal system prevailing in India.
  • Drafting of Legal Agreements such as Joint Venture Agreements, Foreign Technology Agreements, Shareholders Agreements, Know How Assistance Agreement, Brand Protection Agreement etc.
  • Due diligence and feasibility analysis of probable collaborators.
  • Searching the best possible technology and financial partners
  • Negotiating and structuring Joint Venture terms & contracts
  • Obtaining necessary approvals from all concerned authorities such as Director General of Foreign Trade (DGFT), Department of Industrial Policy & Promotion (DIPP), Secretariat for Industrial Assistance (SIA) and Reserve Bank of India (RBI) etc.
  • Compliance with all applicable laws and regulations.
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