A share-based joint venture is a joint venture in which all parties to the joint venture participate through the creation of a separate entity, which may take the form, among other things, of a business, lLP or trust. Joint ventures may include jointly controlled entities, jointly controlled assets or jointly controlled transactions. The jointly controlled company can be a registered company. On the other hand, jointly controlled assets and jointly controlled transactions are not incorporated and are subject to the agreement signed between the partners. Yes, a “joint venture” is recognized in India as a stand-alone legal concept. Under the provisions of the Companies Act 2013, a joint venture is defined as a joint agreement in which parties with joint control of the agreement have the rights to their net assets. Joint ventures can be categorized into the following categories. As far as third parties are concerned, a joint enterprise agreement may create a structure for mitigating and apporting liability by third parties between parties to the joint venture, but it cannot protect them from the risks that may be caused by third parties. In the case of the Asia Foundation – Constructions Ltd/State of Gujarat (1987 GLH (2) 510), the Gujarat Supreme Court on “responsibility” in joint ventures relied on a demonstration that: For more information, please see the page of this guide for establishing a joint enterprise agreement. With respect to legal privilege, while the courts have held that the requirement to submit consultation documents with the obligation to disclose their existence is coextensive, there are many relevant documents that, although they must be disclosed in the list of documents, are nevertheless protected from submission. There are several reasons why this privilege can be invoked, including: joint ventures are either “brown surfaces” or “green grassland.” When a joint venture is formed by Dener, funded by the parent company, or by the transfer of existing assets, it is called a “brown field unit.” A “greenfield unit” is a new entity that acquires assets and re-founds a business from scratch. This concept is also recognized under the Health Money Prevention Act 2002 and its relevant regulations (PMLA). The PMLA requires the identification of customers and their actual beneficiaries by each bank, institution and other intermediary.
The joint venture may be obliged to reveal the final economic beneficiary upon identification. In addition, several regulatory authorities (for example. B the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) instruct intermediaries, banks and financial institutions to search for details of their clients` ultimate economic beneficiaries` data while conducting customer checks. If the joint venture is financed by debt, the interest paid or payable by the joint venture to the joint ventures is accepted as a deduction in the hands of the joint venture, while taxable income is calculated. Interest paid or payable on loans and obligations is subject to 10% withholding tax on the joint venture`s resident partners and 40% (plus mark-ups and down payments) on non-resident partners in the joint venture. Interest paid or payable to the ECB is subject to a 5% less withholding tax (plus the applicable mark-up and commitment), subject to compliance with the conditions set out in the Information Technology Act. In the case of non-resident partners, they are entitled to benefit, if necessary, from the advantageous provision of the DBAA. A fully operational joint venture can be sold to a third-party buyer, allowing the various partners in the joint venture to withdraw and allowing them to liquidate their stake. In most contracts, including joint enterprise agreements, contracting parties are free to approve a law or method of dispute resolution, subject to certain qualifications.