Formation of Joint Ventures Company in India :-
The Joint Ventures can be establishment in India between Foreign Investor and the Indian Partner. Foreign investors can include Non-Resident Indians (NRIs), Person of India Origins (PIOs), Overseas Citizens of India (OCIs), Foreign Nationals, Foreign Companies, other such entities.
- The Joint Venture Company can be private limited company or a public limited company depending upon the requirements.
- The Joint Venture Company incorporated in India is an Indian Company. However one of the directors must stay in India for at least 182 days during the financial year.
- The benefits and requisites of incorporation of a private or public limited company are applicable to the Joint Venture Company.
- The Investment by the Foreign Investors / Company can be on Repatriation basis or on non-repatriation basis.
- The Investment by the foreign company in the Joint Venture Company can be subject to Sectoral Caps stipulated in FDI Policy. The FDI is permitted under Automatic Route or with GOI permission as per FDI Policy.
- The Foreign Investors/ Company can invest in the Joint Venture Company either at the time of its incorporation or after the incorporation. However, for administrative convenience it is advisable if the Foreign Investment is made in the Joint Venture Company after its incorporation.