Joint Venture with an Indian Partner
Making joint venture with an Indian Partner essentially includes identifying the potential partners, appraising their strengths & weaknesses, evaluating the synergistic capabilities, in addition to recommending the appropriate partnership structure. Selection of a well-established and visionary local partner is the key to success of any joint venture.
Foreign Companies of any sector can easily set up their operations in India by forging strategic alliances with Indian partners. This method of Joint Venture is commonly used by most of the foreign companies entering the Indian Market. Joint Ventures Companies are formed under the Indian Companies Act. It is quite possible to start such a joint venture either with an existing company or to start it afresh with an Indian partner. In either case, the Indian company requires to exist and it has to approach the Foreign Investment Promotion Board (FIPB) or the Reserve Bank of India, together with a request for allowing the proposed foreign investment in the specified company.
Such Joint Venture offer the following advantages to the foreign investor:-
* Availability of distribution/marketing set-up, established by the Indian Partner.
* Availability of financial resources of the Indian Partner.
* Contracts of the Indian Partner, which can help the foreign investor in smoothing out the business operations in India.
