1.Two parties, (individuals or companies), incorporate a company in India. Business of one party is transferred to the company and as consideration for such transfer, shares are issued by the company and subscribed by that party. The other party subscribes for the shares in cash.
2.The above two parties subscribe to the shares of the joint venture company in agreed proportion, in cash, and start a new business.
3.Promoter shareholder of an existing Indian company and a third party, who/which may be individual/company, one of them non-resident or both residents for the help www.jointwebventures.com collaborate to jointly carry on the business of that company and its shares are taken by the said third party through payment in cash.
Some practical aspects of formation of international joint ventures and the prerequisites which the parties should take into account are enumerated herein after. Selection of a good local partner and a good consultant is the key to the success of any joint venture.
Once a partner is selected generally a Memorandum of Understanding or a Letter of Intent is signed by the parties highlighting the basis of the future joint venture agreement.
Types of Joint Venture Arrangements
Joint Venture arranges may range from independent joint ventures to forming a jointly owned company and a range in between. It depends on the needs of a company to see what kind of arrangement bests suits it. A Joint Venture consultant can walk you through various options and help you set up optimal Joint Venture for your company in a cost-effective manner.
Joint Venture Steps
We provide Joint Venture solutions through the following Process:
?Situation Analysis - Analyzing the company's requirements and identifying the "outsourceable" components.
?Joint Venture Options & Planning - Analyzing various options ranging from sub-contracting to co-opetiton and planning Joint Venture model which is most appropriate in the circumstances.
?Contracts & Agreements - Drafting all the Joint Venture contracts.
How to Draft an Joint Venture Agreements?
A good Joint Venture agreement is one which provides a comprehensive road map of the duties and obligations of both the parties.
It minimizes complications when a dispute arise. However, many a times people neglect to pay attention while drafting an Joint Venture agreement.
Before finalizing an for the help www.joint-venture-guide.com. Joint Venture agreement, the terms should be thoroughly discussed and negotiated to avoid any misunderstanding at a later stage. Lawyers from all applicable jurisdictions must be consulted before finalizing any Joint Venture agreement.
Every Joint Venture agreement should be modified as applicable under different circumstances. One brush should not paint all the painting.
WHY JV CONSULTANTS ARE REQUIRED?
Some benefits, that make hiring a consultant a perfect business sense, are given below.
?They are objective to Customer Operations but out of their Corporate Power Games.
?They have been there done that and can replicate it again for their customers and just as the customers want it.
?They are clued in and can transfer skimmed information and best practices.
?If forming international joint venture, they can behave as a one-stop shop for entire Project Management.
?Local knowledge is yet another key that they hold.
The roles of JV Consultants have changed the following being prominent:
1. Facilitative
2. Contributive
3. Consultative
4. Project Consultative
Selection of a consultant will vary depending upon what your objective is. if you are looking at international joint venture, then you need someone who is capable of being a facilitator who understands the business practices and legal knowledge of both the countries.
Definition Of Joint Venture
Joint Venture Marketing can take many forms -- and if done properly, can significantly enhance your business. Don't let the name fool you, you have already been a consumer of a number of joint venture marketing promotions. Have you ever purchased a pizza during the Final Four, and received a free basketball? That is a result of a joint venture. There are countless other examples, but you get the general idea. They also had a large number of customers. The deal was for every computer sold, it would have MS-DOS already installed with the agreement that this little company called Microsoft would give lifetime upgrades for its software. Well, the rest is history and it made the head of that small time company a billionaire by the time he was 31 years old.
Another form of joint venture marketing that has gained popularity on the internet is the dawn of virtual marketplaces. Many niche sites offer this type of marketplace, and they allow the members to pool resources to generate traffic, and of course, sales. One of the most powerful benefits to this type of venue is the appeal of their ability to pool advertising dollars to obtain a promotional presence that members might not have been able to acquire individually. In addition, these venues are often able to procure significant discounts and special offers for members from common suppliers, which creates a stronger buying presence for the group as a whole. Members gain visibility in the marketplace and in the search engines, and they enjoy the benefit of increased traffic to their individual businesses.
An extreme and exceptional example of this is a little company called Microsoft. The head of this small company had some software called MS-DOS and no customers. He reached a deal with a company called IBM who made computers and was already a known and respected company in the computer industry. They also had a large number of customers. The deal was for every computer sold, it would have MS-DOS already installed with the agreement that this little company called Microsoft would give lifetime upgrades for its software. Well, the rest is history and it made the head of that small time company a billionaire by the time he was 31 years old.
Another benefit would be the mutual use of experts in other areas of expertise and or technology. By using the above example for this point, the computer company has a great writer and the software company's programmers are not good at explaining how this software works or what it can do. The computer company's writer can then be used for a tutorial on how to use the software along with the tutorial on how to operate the computer. This then will make using the computer and software much easier for the customer.
From a consumer perspective, it is a winning situation as well. Collaborative marketplaces create a "one-stop-shopping" experience, providing consumers with the ability to browse several merchants during one browsing session. The ability to quickly obtain comparative pricing among similar merchants create a strong value among customers, and create a natural environment of competition. This forces participating vendors to strive for a higher quality product, at a competitive price.
Both Ankur Singh & Dharmender Kumar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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