A Joint Venture is a strategic alliance where two or more parties form a partnership to share markets / intellectual property and its knowledge and of 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 but 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:-
Entering the target market in double pick time as the geographical area would remain beyond reach without local partners.
Local business partners could provide vertical and horizontal market penetration.
Availability of human resources in marketing / R&D/ Production and Operations.
Availability of legal resources with the local partner to structure the joint venture and ensure all compliances.
Accessibility of distribution channel.
Exchange of technology
To globalize product and so on.
Reduction in overall costs/ economies of scale.
Spreading of risks mainly on large scale investments.
All of these goals can be easily achieved resulting in percentage of increased profits and successfully tapping the Indian market.
What VJM & Associates Offers
We at VJM & Associates help in the planning of joint venture proposals for different business entities through the Joint Venture Services that we provide. Those interested in a Joint business venture are usually looking forward to have a complete merging of the entities without any hassles. We deal with many such organizations in the Private sector and work closely with the companies involved, to arrange the finalization of all the documentation and drafting required for the union. Our team of highly experienced personnel works as per the company laws while offering expert consultation on the whole process. While working for such organizations, we consider ourselves as their extension to understand them better.
JOINT VENTURE SOLUTIONS:
Preparation of complete documentation
Team of experts
Smooth merging of two or more entities
Conduct a thorough partner search evaluating their strengths and weaknesses.
Understand and establish synergy between the partners.
Walking through negotiations
Conducting the valuation of the company
Structure the proposed entity through all statutory and legal compliances.