Company Solutions

Joint Venture (JV) agreements play a pivotal role in fostering collaborations between two or more parties to achieve a common business objective. In India, these agreements are widely used by domestic and international entities to pool resources, share expertise, and explore new markets. This article provides a detailed understanding of joint venture agreements in India, their key components, and legal implications. What is a Joint Venture Agreement? A Joint Venture Agreement is a legally binding document that outlines the terms and conditions of a partnership between two or more parties. It defines the roles, responsibilities, and contributions of each party, ensuring smooth operations and conflict resolution. Joint ventures in India can be structured as: Equity-Based JV : Partners contribute capital and form a new entity. Contractual JV : Partners collaborate without forming a separate legal entity. Key Features of Joint Venture Agreements Purpose and Scope : Clearly defines the obje...

Authorized share capital is the maximum amount of share capital that a company is authorized to issue to its shareholders. If your private limited company needs additional funds, increasing the authorized share capital is often the first step. This article explains the process to increase the authorized share capital of a private limited company, ensuring compliance with the Companies Act, 2013. What is Authorized Share Capital? Authorized share capital is the limit defined in the company’s Memorandum of Association (MOA) regarding the shares the company can issue. A company cannot issue shares beyond this limit unless it increases its authorized share capital by following the prescribed legal procedure. Reasons to Increase Authorized Share Capital To raise additional funds for business expansion or operations. To accommodate the issuance of new shares to investors or employees. To comply with the terms of agreements such as funding or mergers. Procedure to Increase Authorize...