A Joint Venture is a strategic alliance where two or more parties form a partnership to share markets / intellectual property and its knowledge and off course profits. Joint Venture Companies are the most preferred module of corporate entities for doing business in India to achieve specific objectives of a partnership like temporary arrangement between two or more firms. Companies who wish to penetrate markets normally would require to invest tremendous amount of resources in case of cross border joint ventures, JVs are advantageous as a risk reducing mechanism in new-market penetration, and in pooling of resource for large projects. The Companies incorporated in India, even up to 100% foreign equity, are at par at domestic companies. A Joint Venture may be any of the business modules available. There are no separate laws for joint ventures in India. They, however, present unique problems in equity ownership, operational control, and distribution of profits (or losses).
JOINT VENTURE ADVANTAGES
Foreign companies can have the following advantages:-