Skip to content
Adullam IncorporationADULLAM INCORPORATION
← By entity
JV

Joint venture company

Approval: MCA incorporation + government approval in some sectors · shareholders' agreement

A company owned with an Indian partner. Legally usually a private limited company, but sector FDI caps, fair-value pricing and the shareholders' agreement are central. You gain the partner's network, licences and land, but must design governance carefully from day one.

Can and can't do

AllowedOfficial

Entering FDI-capped sectors

Where 100% FDI isn't allowed, a JV is the practical route.

Source: india-briefing.com · checked
AllowedOfficial

Using the partner's plant, land and network

In-kind contributions need valuation and reporting.

Source: treelife.in ·
ConditionalOfficial

Setting any equity split

Within sector caps; approval-route sectors need approval first.

Source: india-briefing.com · checked
ConditionalOfficial

Shareholders from land-border countries

Since March 2026, non-controlling beneficial ownership up to 10% is automatic; above needs approval.

Source: taxguru.in ·
Not allowedOfficial

Issuing shares to foreigners below fair value

Shares to non-residents must be at or above fair value; the valuation goes into FC-GPR.

Source: treelife.in ·
Not allowedOfficial

Running on verbal understanding

Deadlock, dispute forum and share-transfer limits must be written down.

Source: india-briefing.com · checked

RBI/MCA steps & deadlines

NDA, MOU and due diligence
Source: adullamcorp.com · checked
Client · Adullam
Shareholders' agreement and AOA; sector cap check
Source: india-briefing.com · checked
Legal
Government approval where required (60-day fast track for some manufacturing)
Source: taxguru.in ·
DPIIT · ministry
Incorporate via SPICe+ (as for Pvt Ltd)
Source: patronaccounting.com ·
MCA
Foreign capital → allotment → FC-GPR
Source: treelife.in ·
RBI

Documents

  • All private limited company documents
  • MOU/term sheet, SHA, and AOA reflecting key SHA terms
  • Partner: financials, licences, UBO declaration
  • Fair valuation (CA or SEBI merchant banker)

Tax

Taxed like any domestic company. Dividends to Korean shareholders are capped at 15% under the treaty; gains on stakes above 5% may be taxed in India.

Source: cleartax.in · checked

Costs

Incorporation government costsSame as a private limited company (name ₹1,000; nil filing fee up to ₹15 lakh capital; state stamp duty)Official Source: patronaccounting.com ·
Share valuation reportExample: ₹25,000–₹1,00,000 by sizeExample
Due diligence & SHA legal feesExample: quoted by scopeExample

Timeline

Negotiation to incorporationExample: 3–9 months, mostly negotiationExample
Incorporation itself4–8 weeksOfficial Source: india-briefing.com · checked

Recent cases

Reported cases plus illustrative examples within real ranges; examples are labelled.

· worldsteelOfficial

JSW Steel and POSCO signed a JV agreement for an integrated plant in Odisha at the India–Korea Business Forum, after an MoU (Oct 2024) and heads of agreement (Jul 2025).

Read source →
· Adullam ConsultingOfficial

An Adullam JV project: NDA and MoU (Dec 2025–Feb 2026), JV task force (Mar), Indian executives' factory visit (May), joint tech show (Jul), targeting JV incorporation in December 2026.

Read source →
Example

Illustrative: a JV with a distributor; the Korean side holds a board majority and quality veto.

Request a consultation

Tell us your business, region and timing

We reply with the right structure, steps and expected cost. The first consultation is free.

Phone+82-10-7641-4018
KakaoTalkceo_adlconsulting
Emailliminae@adullamcorp.com
WhatsApp+82-10-2991-4018
AI

Ask AI

Common questions with sources. Our AI answers from the material we have prepared.

Joint Venture · Adullam Incorporation