An agreement is a legal contract between two or more parties to pool their resources and expertise to pursue a specific business project or objective. It is often used to enter new markets, develop new products or technologies, or share risks and costs.
A joint venture (JV) agreement is a legally binding contract between two or more parties to create a business arrangement where they share resources and expertise to pursue a common business objective. JVs are often formed to gain access to new markets, technologies, or expertise that would be difficult or costly to acquire independently.
India has a strong legal framework for joint ventures, making it an attractive destination for foreign companies seeking to enter the Indian market. JVs in India are typically structured as either contractual JVs or equity JVs. In a contractual JV, the parties do not form a separate legal entity, while in an equity JV, the parties form a new company to carry out the joint venture project.
