There are no distinct or specific rules governing joint ventures in India, they are controlled under applicable laws and regulations of the Indian Contract Act, Transfer of Property among other such acts in India.
A joint venture allows each partner to benefit from the resources of the other participant(s) without having to invest a lot of money on it. Each firm may retain its own identity while generating a healthy profit, and can quickly return to normal business activities after the joint venture is over, lowering and limiting risk while maximizing profit.
A joint venture can be founded for any legal commercial purpose; however, they are most commonly formed for the purposes of technology transfer, research and development, and the supply of technical know-how. They are also formed to assist both parties in a joint venture in growing. When entering a new market or nation, some firms form joint ventures with established enterprises.
A joint venture is formed to execute a specific project with specified objectives, and it ends after the project is completed. An exit strategy is critical because it lays out a clear path for dissolving the joint venture, avoiding lengthy talks, costly legal fights, unfair tactics, poor consumer effect, and potential financial loss.In most joint ventures, an exit strategy can come in three different forms: sale of the new business, a spinoff of operations, or employee ownership. Each exit strategy offers different advantages to partners in the joint venture, as well as the potential for conflict.