Joint Venture Agreement Format
Set out how two or more parties will work together on a project or business: contributions, control, profit sharing and exit.
What it is
A joint venture is an arrangement in which two or more parties combine resources for a business or project and share its risks and rewards. It can be contractual (each party keeps its identity and the JV is governed by the agreement) or incorporated (the parties form a company or LLP). The agreement records the purpose, structure, each party's contribution, how decisions are made, which matters need unanimous consent, ownership of IP and how a party can exit.
When it is used
- Two businesses bidding for or executing a project together.
- A foreign company partnering with an Indian business.
- Before forming a JV company, as the term sheet for its shareholders' agreement.
What the template covers
- JV partners and JV name
- Purpose and structure (contractual, company or LLP)
- Contributions and profit sharing
- Management and reserved matters
- IP, confidentiality and non-compete
- Duration, exit mechanism and disputes
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Agreement Details
Agreement Date; Place
JV Details
JV Name / Project Name; Purpose of JV; JV Structure
JV Partners
JV Partners: Partner Name, Address, PAN, Capital / Contribution (₹), Profit Share (%)
Terms
JV Duration (years); Management; Reserved Matters require
Exit
Exit Mechanism; Jurisdiction
Stamp duty, registration and filing
An unincorporated JV can be taxed as an association of persons, so the structure needs tax planning before signing. Where a JV company is formed, the agreed terms should be carried into its articles of association. A foreign partner brings FEMA and FDI policy conditions on the sector, pricing and reporting. Combinations above the thresholds may need Competition Commission approval. Stamp duty depends on the State.
Generate the Joint Venture Agreement (Basic)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows? Contact SKAG and Associates
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Frequently asked questions
Is a joint venture a separate legal entity?
Only if the parties form a company or LLP. A contractual JV is not a separate entity, though it may be taxed as an association of persons.
What is the difference between a JV agreement and a shareholders' agreement?
A JV agreement covers the overall collaboration; a shareholders' agreement governs the rights of the shareholders in a JV company.
What exit routes are common?
Buy-out of one party by the other, sale to a third party with rights of first refusal, put and call options, or winding up.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.