A joint venture law may be described as an association between a group of persons (natural or legal entities) who enter into an agreement to do business together or to undertake a particular project, without losing their independent corporate structures.
A joint venture not only minimizes the risk factors involved in entering into a new business area, but also reduces the costs involved. By allowing entry into a foreign jurisdiction, a joint venture unlocks potential business opportunities and provides new learning experi- ences for the concerned business entities, which is especially helpful in emerging countries such as India.
In India, there are no separate laws or set of principles governing the formation, conduct, and termination of joint ventures. However, the agreements that will regulate an Indian joint venture should be construed in accordance with Indian general principles and rules in force, and should comply with some requirements imposed by Indian law concerning the transfer of technology. The receipt of governmen- tal approvals may also be necessary.