Foreign Exchange Law

Foreign direct investment is governed by company law in India. At a basic level, it comes into effect when a company from one country makes a physical and monetary investment into building a factory or office in another country. The investment involves many other factors as well.

Typically, a joint venture is a contractual agreement, between two or more parties, for a common commercial purpose. The concerned parties agree to share markets, profits, intellectual property, assets and knowledge for the new business venture. Further, the concerned parties own the shares of the joint venture company in prior agreed proportion. Formations of joint ventures in India are governed by company law.