A joint venture (JV) is a business entity created by two or more parties, having shared ownership, shared returns and risks, and shared management. Joint Venture companies are the most preferred form of corporate entities for doing business in India. There are no separate laws for joint ventures in India. The companies incorporated in India, even with up to 100% foreign equity, are treated the same as domestic companies.
A Joint Venture Agreement is an arrangement between two companies to combine their resources and develop a new company for their mutual benefit. It sets out the rights and obligation of the parties, objective of forming JV, contribution and share in profit and loss of each party etc.